what are the result of the external analysis used for

Question

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

Answer 1

1. To find out who the competitors are: An external analysis helps in identifying the current competitors in the market. Understanding the competitive landscape is crucial for a firm to develop strategies that can help them stand out and compete effectively.

2. To define the internal values and mission: By conducting an external analysis, firms gain insights into the external factors that can impact their business. This understanding can then be used to define the internal values and mission of the company, aligning them with the changing market dynamics.

3. To identify key resources and capabilities: External analysis provides information about the resources and capabilities of both the firm and its competitors. This analysis helps in identifying key strengths and weaknesses, allowing for strategic decisions regarding resource allocation and optimization.

4. To predict the future conditions the firm may face: By analyzing external factors such as market trends, industry regulations, technological advancements, and economic conditions, firms can gain insights into the future conditions they may encounter. This knowledge helps in making proactive decisions and developing strategies to adapt and respond to potential challenges or opportunities.

Overall, the result of an external analysis helps firms in understanding their position in the market, defining their internal values and mission, identifying key resources and capabilities, and predicting future conditions they may face. These insights enable firms to develop effective strategies and make informed decisions to enhance their competitiveness and long-term success.