example of practical application of external environmental analysis

8/7/2019 example of practical application of external environmental analysis

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M UngererUSB Strategic Management

Example of practical application of External environment datagathering Process: Namibian Agricultural organisation June ‘09

1



Abcc Strategy:

Industry Analysis



3M Ungerer THE STRATEGY WEB

Industry trends and opportunities (1)

How would you describe the Industry/Industry cluster Xyzz is competingin?

Zzz

What are the other industry/alternative industry descriptions you candefine for the competitive space Abcc wants to occupy?

yyy





What are the challenges and rivalries in this industry? What are some ofthe key trends that we observe here?: Are there any threats from disintermediating industries?

• Y…

Are there any threats from current players or new entrants into this industry –

now and in future?• Y…

Are there changes to the industry rules that will make it difficult in the future?• Y…

What orthodoxies (generally accepted rules, approaches, thinking) exist inthis industry, that we can possibly capitalize on?

Yy..





How can we shift our relative bargaining power in this industry. Whatadvantages is there in doing this? Yy..

Can we compete in other industries through substitute products andservices that can add or improve value, based on some of our currentskills? Yy..




Industry Value chain

What is the position of ourorganisation in the industry value

chain? What are the areas ofthreats and opportunities?


http://slidepdf.com/reader/full/example-of-practical-application-of-external-environmental-analysis 7/197M Ungerer THE STRATEGY WEB

Summary: Industry trends and opportunities

Key Industry Trends Implications/Opportunities/Threats



Abcc Strategy:

Competitor Analysis



Competitor trends and opportunities (1.1)

Who are the main competitors/potential competitors of Abcc? (Think of whohave the capabilities to replace your offering, substitute your offering). Also

describe the competitors core business.

Main Competitors Their core business, offerings and strengths



Competitor trends and opportunities (1.2)

Who are the main competitors/potential competitors of Abcc? (Think of whohave the capabilities to replace your offering, substitute your offering). Also

describe the competitors core business.

Main Competitors Their core business, offerings and strengths



Thinking about Competitors

Here essentially the focus moves to the other players in the industry you play in or players fromindustries potentially targeted by your company.

Key questions to answer is:

•Who are our real competitors?•

Where are they beating us and why?•What are their business designs?•What are their strategies and where are they making investments to break out of their current valuechain role?•How can we counteract their competitive positioning?

We should also now already establish the right mental model for our review. When looking at your competition do not think of ways of going against competitors but of going around them. It is based rather on avoidance than attack. ( Hamel) Too many examples exists of head-on battles

that developed into ever escalating price or promotion wars, pressure on margins and eventually demise



Conclusions: Competitor trends and opportunities

Key Competitor Trends Implications/Opportunities/Threats



Abcc Strategy:

Customer Trends



Customer trends and opportunities (1)The first important aspect here is to be able to categorize customers accurately. Be very clear onwho the customer is and don’t think you have a homogeneous customer base. Think of end

customer groups who have similar needs.

What do customers currently value and prefer? (per segment)

Zz..

How have their priorities changed?

Zz..

Are there any new customers we should include in our scope?

Zz..



Customer trends and opportunities (2.1)The first important aspect here is to be able to categorize customers accurately. Be very clear onwho the customer is and don’t think you have a homogeneous customer base. Think of end


Segment

Description

Current

Customer Needs

Present Offering

FeaturesGaps & Implications for

new offerings/ features

Future Customer

Needs

C



Customer trends and opportunities (2.2)The first important aspect here is to be able to categorize customers accurately. Be very clear onwho the customer is and don’t think you have a homogeneous customer base. Think of end


Segment

Description

Current

Customer Needs

Present Offering

FeaturesGaps & Implications for

new offerings/ features

Future Customer

Needs



Abcc Strategy:

External Analysis Integration



Development of Opportunities and Treats based on External analysis

Threats Impact Scale 1-10:

1=Weak 10=Strong

Threats Impact Scale 1-10:

1=Weak 10=Strong



Development of Opportunities and Treats based on External analysis

Opportunities Impact Scale 1-10:

1=Weak 10=Strong

Opportunities Impact Scale 1-10:

1=Weak 10=Strong

example of practical application of external environmental analysis

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