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.
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 answer
1 answer