Business Environment Analysis
Analysis of a company’s business environment is crucial in order to identify openings for future success. Business Environmental analysis includes an investigation of a defined market or industry, and may focus on aspects such as customers, competitors, suppliers, substitutes, political and economic changes in the society, social tendencies, and technological development.
The result of a business environment analysis, also called industry analysis, answers whether the industry or market is profitable as such, which actors are successful and why, and what the likely future tendencies and opportunities are.
A Business Environment analysis is a prerequisite for any serious strategy formulation since it provides reference points for the key assumptions for building a Business Strategy.
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