which of the following are the result of the external analysis used for
to find out who the competitors are
to define the internal values and mission
to identify key resources and capabilities
to predict the future conditions the firm may face
1. Identifying who the competitors are: The result of external analysis can help a firm to determine who their competitors are in the market. This analysis involves understanding the competitive landscape, analyzing industry trends, and identifying direct and indirect competitors.
2. Defining internal values and mission: External analysis can also provide insights into the market and industry dynamics, which can then be used to define the internal values and mission of a firm. By understanding the external environment, a company can align its internal values and mission with the market demands and trends for better strategic positioning.
3. Identifying key resources and capabilities: External analysis helps in identifying the key resources and capabilities that a firm possesses or needs to acquire to compete effectively in the market. It involves evaluating the strengths, weaknesses, opportunities, and threats (SWOT analysis) to determine the strategic resources and capabilities that can give the firm a competitive advantage.
4. Predicting future conditions the firm may face: External analysis helps in predicting the future conditions and challenges that a firm may face in the market. By analyzing industry trends, market forces, technological advancements, and regulatory changes, firms can anticipate potential opportunities and threats, allowing them to proactively prepare and adapt their strategies accordingly.
The result of the external analysis includes:
1. Identifying Competitors: The analysis helps to identify who the competitors are in the market. This involves studying and understanding the competitive landscape to determine the rival firms that operate in the same industry or offer similar products/services.
2. Defining Internal Values and Mission: External analysis also assists in defining internal values and mission by evaluating the external environment. It helps to understand the market trends, customer preferences, and industry dynamics, which can then be incorporated into the organization's values and mission statement.
3. Identifying Key Resources and Capabilities: Through external analysis, organizations gain insights into the key resources and capabilities they possess or need to acquire to compete effectively in the market. This includes identifying strengths, weaknesses, opportunities, and threats (SWOT analysis) to determine where the organization needs to improve or invest resources.
4. Predicting Future Conditions: External analysis helps in predicting future conditions that a firm may face. This involves understanding market trends, technological advancements, regulatory changes, and other factors that may impact the industry. By anticipating future conditions, organizations can develop strategies to stay ahead of the competition and adapt to changing circumstances.
The external analysis is a process that helps organizations to understand the external environment in which they operate. It involves evaluating various factors and trends that could impact the success of a business. Here is how each of the following objectives can be achieved through external analysis:
1. To find out who the competitors are: Conducting an external analysis allows organizations to identify and analyze their competitors. This can be done through market research, industry reports, competitor analysis tools, and monitoring industry trends. By examining the competitive landscape, businesses can understand their position in the market and develop strategies to gain a competitive advantage.
2. To define the internal values and mission: External analysis helps organizations to identify opportunities and threats in the external environment. By understanding the market dynamics, including customer preferences, industry trends, and regulatory changes, businesses can align their internal values and mission with the external environment. This process enables organizations to adapt their goals and strategies to match the needs and expectations of their target market.
3. To identify key resources and capabilities: External analysis helps in identifying the key resources and capabilities needed to compete effectively in the market. By analyzing the external environment, organizations can identify their strengths and weaknesses in relation to their competitors. This analysis provides insights into the resources and capabilities that are crucial for success. For example, it may involve assessing the technological advancements, supply chain capabilities, or human capital required to meet customer demands.
4. To predict the future conditions the firm may face: External analysis helps organizations to anticipate and predict future conditions that may impact their operations. By studying market trends, competitor behavior, technological advancements, and regulatory changes, businesses can develop scenarios and forecasts for potential future outcomes. This helps organizations to proactively plan and strategize, mitigating risks and capitalizing on emerging opportunities.
Overall, conducting an external analysis is a crucial step for organizations to gather relevant information about their industry, competitors, market trends, and regulatory environment. It provides valuable insights that can guide decision-making and help businesses to stay competitive and adapt to the ever-changing business landscape.