The internal analysis examines method your company’s internal environment, such as the company’s characteristics, resources, capabilities, and core competencies. When we are performing an internal analysis, we can identify your company’s strengths and weaknesses. This information can help strategic decision-making.
SWOT analysis
You can evaluate the current state of the organization through a SWOT evaluation. This assessment can help determine new forces. You can check your organization’s orientation, problems, and limitations. SWOT means strengths, weaknesses, opportunities, and threats. Therefore, SWOT analysis is an analysis method that evaluates four things of business. Furthermore, SWOT evaluation methods can help you make the most of your organization’s capabilities and create benefits for your organization.
Strength: Strength can be defined in one-word difference.’ This is because it is a strength that differentiates from competitors. If you have many strengths, market competitiveness will follow. That is why we need to analyze the power of the organization. This is because it can be competitive in the market by informing consumers of the organization’s strengths.
Weakness: It’s an excellent organization with no defects, but I think every organization has its shortcomings. I think what is more important than analyzing strengths is to analyze weaknesses. After analyzing weaknesses, the company’s competitiveness will be even greater if it changes to powers.
Opportunity: Opportunity is a critical situation for development. However, if the ability does not support the opportunity, the opportunity will be lost. The ability to capture and utilize opportunities, and the ability to seize them, can be used well.
Threat: It is essential to ascertain what threats the company is facing externally. It is necessary to check carefully because there are various threats.
External environmental analysis
External environmental analysis is a strategic tool. External environmental analysis is a strategic analysis method that identifies external factors that may affect an enterprise and then aligns strategies. The market is changing every day. Companies must respond accordingly. Many are developing and evolving. If the change or development is analyzed and responded to in advance, it could positively affect the company. The environment heavily influences businesses. Because every situation affects the company, the company must do a trade environment and market analysis. An entity uses many strategic analytical tools, but PESTEL will be recognized among them. PESTEL analysis techniques consist of business-impacting factors. Each character in the abbreviation can represent a set of characteristics.
PASTEL
Political: political factors mean the political situation in the country. Furthermore, the global condition affects businesses because it affects the country. It analyzes political factors affecting businesses. There are several political factors to study. Government policies, tax laws, tariffs, government stability, entry mode regulations, etc., should be analyzed.
Economic: Economic factors include financial and national characteristics. Various economic factors, such as inflation and interest rates, affect businesses, so we need to anticipate, analyze, and prepare.
Social: Each country’s culture is very different. The culture of a country affects businesses a lot. Social factors can affect products and services. Because the way of social life is very other, you have to change the product or service according to the culture or social life.
Technological: technology is developing. This change is affecting businesses. It would help if you kept up-to-date while analyzing the environment for these factors. Keeping these technologies up to date will be very popular with consumers. Furthermore, it is essential to dominating the market.
Environmental: The issues such as environmental climate change and natural disasters affect business. For example, looking at the recent Suez Canal strand accident, many companies have wasted their time and economic losses. These environmental factors affect the business.
Legal factors: Various legal regulations affect business. Legally regulated would affect the economy. Various regulations such as product regulations, employment regulations, patents, and safety and health regulations should be known and prepared in advance.
Reference
https://www.nibusinessinfo.co.uk/content/external-and-internal-analysis-your-marketing-plan
https://corporatefinanceinstitute.com/resources/knowledge/strategy/external-analysis/
