Businesses can predict and prepare for potential risks

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Competitive environment assessment: Through competitor analysis, businesses can clearly understand their position in the market and develop appropriate competitive strategies. Strategic decision making: External analysis provides important information for businesses to plan effective business strategies, from selecting target markets to developing new products.


Risk Mitigation: By analyzing external factors, thereby minimizing negative impacts on business operations. Factors Often Analyzed in External Analysis Economic factors: Macroeconomic situation, interest rates, exchange rates, inflation, consumer disposable income, etc.


Political-legal factors: Legal regulations, government italy whatsapp number data policies, political stability, etc. Socio-cultural factors: Values, beliefs, lifestyles, demographics, consumer trends, etc. Technological factors: New technological advances, changes in the technology industry, opportunities and challenges from technology, etc. Environmental factors: Environmental issues, climate change, environmental protection regulations, etc.


Competitive factors: Competitors, market share, competitors' competitive strategies, etc. Popular External Analysis Tools PEST Analysis: Analysis of Political, Economic, Social and Technological factors. Porter's Five Forces Analysis: Evaluates the competitive strength of an industry through five factors: Current competitors, Potential competitors, Substitute products, Supplier power and Buyer power.