FULL EXTERNAL SITUATION ANALYSIS OUTLINE
Copyright 2002, Professor Jerome M. Katrichis
III. EXTERNAL SITUATION ANALYSIS
A. Nature of Demand - qualitative
1. Who are your customers?
2. What do they buy? (Primary vs. selective demand).
3. Shopping Behavior
a. Where and when do they buy?
b. Buying procedures and practices.
4. Consumption Behavior
a. How do they use/consume the product?
b. End use patterns.
c. Service requirements.
5. Frequency, quantity and timing of purchase?
6. Evaluative Criteria
a. How do they choose?
b. Why do they select a particular product?
7. Segmentation - differences in any of the above by segment.
B. Extent of Demand
1. Market Size
2. Growth Rates
C. Nature of Competition
1. Industry Analysis
a. Competitive Structure
b. Market potential and major trends in supply and demand of this and related products.
c. Size, scope, and share of market history for all producers.
d. Industry capacity.
e. New product entry prospects.
f. Power of suppliers.
g. Power of buyers.
2. Competitor Analysis (for each competitor)
a. How are results measured and evaluated?
b. How were results achieved and what factors helped or hurt?
c. What are important strengths and liabilities and will they change?
d. What is the future strategy likely to be?
e. Pricing history through all channels of distribution.
f. Distribution channels.
g. Selling policies and practices.
h. Advertising and promotion.
i. What resources do they have in terms of:
1. Ability to conceive and design new products.
2. Ability to produce and manufacture?
3. Ability to meet customer service needs.
4. Ability to market.
5. Ability to finance.
6. Ability to manage.
7. Their will to succeed in this business.
3. Other potential competitors \ substitutes
D. Environmental Climate
1. Technological - rate of change and forecast for each of the following.
d. New product lead time
E. Product Life Cycle
1. Current Stage
2. Typical Length
b. Product Line
c. Individual Models
F. Cost Structure of the Industry - Fixed vs. Variable costs.
G. Distribution Structure
1. Distribution Intensity
2. Types of outlets