The Nature of Competitive Advantage

4497 WordsAug 29, 201018 Pages
CONTENTS INTRODUCTION………………… pg. 3 DEFINITIONS………………………. Pg. 4 EXTERNAL ANALYSIS pg. 5 STEPP Analysis CONCEPTS a. Socio-Cultural/demographic issues affecting business. b. Technological Factors c. Economic factors d. Political and legal factors e. Physical/Environmental Factors IDENTIFICATION OF INDUSTRIES OPPORTUNITIES AND THREAT pg. 7 a) A Model For Industry Analysis- Porter’s Five Forces b) Rivalry c) Threat Of Substitutes d) Buyer Power e) Supplier Power f) Barriers to Entry / Threat of Entry g) Generic Strategies To Counter The…show more content…
The capacity to be used, treated, or developed for a specific purpose. EXTERNAL ANALYSIS Analyzing the industry and the competition. Another important part of the strategic business planning process is the external analysis, in other words looking at the external environment. This incorporates a STEPP profile, an industry profile and competitor profiles. In relation to the environment you need to look at what the opportunities and threats to your business are. What factors could pose a threat to your business? Where are their gaps in the market that you could fill? STEPP Analysis, part of the External Analysis in the strategic business planning process is a crucial part of starting a small business. You must know your industry. STEPP Analysis • Social-Cultural/Demographic • Technological • Economic • Political – legal • Physical/Environmental You may look at the above factors and think that they are out of your control, which is most cases they are. However, if you can monitor these, you can plan how your business will react to them. With these, don’t limit yourself to your own country, start thinking globally. What we are looking to achieve is a table of potential opportunities and threats which could affect your business. |> | |STEPP
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