Strategic Analysis of an Industry

PESTEL Analysis: Strategically Relevant Factors in the Macro-environment

1) What are the strategically relevant factors in the macro-environment? (PESTEL analysis) Must have variables, the significance of each to the industry and overall strategic implications of the macroeconomic environment.
2) What are the industry’s strategy-shaping economic features? (Dominant Economic Features analysis) Define the industry. Must have numbers; for example, size and growth of industry.
3) How strong are the industry’s competitive forces? Identify the power of each variable and the impact of each force. You must state conclusions about the profitability of the industry.
4) What factors are driving industry change, and what impact will they have? (Driving Forces analysis)  You should identify 3 – 5 drivers and the strategic impact of the drivers.
5) What are the industry’s key success factors? (KSF analysis 3 – 5 KSFs. Must have industry strategic impact for KSFs.
6) Strategic Group Map analysis At least 3 – 4 competitors. How are the industry rivals positioned in the market? Must have conclusions on positioning and impact on the industry.
7) Company Outlook Based on Assessment of the Industry.  Is the industry outlook conducive to good ongoing profitability? This is where to tie in the company’s prospects with your industry findings. These are overall summary conclusions of relevant findings. It’s the big summary and tie-in to the company under study.