External Analysis
Analysing 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 your 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?

By analysing the threats and opportunities facing your business it will enable you to prepare for the threats, perhaps by operating slightly differently or expanding into different areas or by helping you make the most of any opportunities that may present themselves.

This section will be looking at the following elements:

The looks things such as Socio-cultural issues, technological factors, economic factors, political and legal implications as well as the physical environment. Which of these factors may pose as opportunities or threats.

This creates an in-depth profile of the industry that you will be operating in and as to whether or not it is a profitable industry. An analysis of this will again should you your business opportunities and threats.

A very important part of analysing your environment is knowing your competition. By answering these questions you may start to see some crucial opportunities (or threats) that exist for you than can be utilized in furthering your business success.

A brief overview of what makes this industry so successful and looking at what the future of the industry holds which ultimately will help you plan your business.