Pestel Industry and Competitive Analysis
L3.Strategic Analysis - External
Introduction/Recap Strategic Analysis External Analysis
PESTEL analysis Industry & Competitive Analysis.
Strategic Analysis: Factors Shaping the Choice of Company Strategy
Social, political, regulatory and community factors Competitive conditions and industry attractiveness Company opportunities and threats to company’s well-being
External Factors
Company’s Strategic Situation
Determine relevance of internal and external factors
Identify and evaluate options/ alternatives
Craft the strategy
Resource strengths, capabilities, and weaknesses
1
Influences of key executives
Shared values and company culture
Internal Factors
2
Strategic Analysis
Recap: Two considerations
Company’s external or macroenvironment
• Industry and competitive conditions
3.2
The Components of a Company’s Macro-Environment (Thompson et al.) (PESTEL analysis)
Company’s internal or microenvironment
• Competencies, capabilities, resource strengths and weaknesses, and competitiveness.
3
Environmental Scanning
Monitoring and interpreting sweep of social, political, economic, ecological, and technological events to spot budding trends that could eventually impact industry
Raise consciousness of managers about potential developments that could Have important impact on industry conditions Pose new opportunities and threats.
5
Environmental Scanning Techniques
Systematic Scanning & Monitoring Use of Scenarios Delphi Techniques.
6
Figure 3.2: Strategic Situation Analysis
Assess Industry & Competitive Conditions
1. Industry profile & growth 2. Nature of competition & strength of competitive forces 3. Drivers of industry change 4. Competitor Analysis-moves of rivals 5. Strategic Grouping 6. Key success factors 7. Industry attractiveness & profit potential
1.Industry Profile & Growth Opportunities Market size (units and sales) Number of players and their relative sizes Prevalence of backward/forward
Introduction/Recap Strategic Analysis External Analysis
PESTEL analysis Industry & Competitive Analysis.
Strategic Analysis: Factors Shaping the Choice of Company Strategy
Social, political, regulatory and community factors Competitive conditions and industry attractiveness Company opportunities and threats to company’s well-being
External Factors
Company’s Strategic Situation
Determine relevance of internal and external factors
Identify and evaluate options/ alternatives
Craft the strategy
Resource strengths, capabilities, and weaknesses
1
Influences of key executives
Shared values and company culture
Internal Factors
2
Strategic Analysis
Recap: Two considerations
Company’s external or macroenvironment
• Industry and competitive conditions
3.2
The Components of a Company’s Macro-Environment (Thompson et al.) (PESTEL analysis)
Company’s internal or microenvironment
• Competencies, capabilities, resource strengths and weaknesses, and competitiveness.
3
Environmental Scanning
Monitoring and interpreting sweep of social, political, economic, ecological, and technological events to spot budding trends that could eventually impact industry
Raise consciousness of managers about potential developments that could Have important impact on industry conditions Pose new opportunities and threats.
5
Environmental Scanning Techniques
Systematic Scanning & Monitoring Use of Scenarios Delphi Techniques.
6
Figure 3.2: Strategic Situation Analysis
Assess Industry & Competitive Conditions
1. Industry profile & growth 2. Nature of competition & strength of competitive forces 3. Drivers of industry change 4. Competitor Analysis-moves of rivals 5. Strategic Grouping 6. Key success factors 7. Industry attractiveness & profit potential
1.Industry Profile & Growth Opportunities Market size (units and sales) Number of players and their relative sizes Prevalence of backward/forward