External Enviromental Analysis

External Enviromental Analysis

Your current situation will be driven from the analysis in your audit. The following sections are suggestions on what to include, but you only need to include the analysis which will become the foundation of your plan. It’s important to review all of your internal and external environments to highlight where you need to focus in order to improve your competitive situation.

External Enviromental Analysis

Factor What’s Happening Impact Term Options Moving Forward
Social Resale is somewhat a new category in Northern Michigan. So we are educating the consumer not just on or brand but the concept as a whole. A higher advertising budget overall, more time meeting face to face and educating the consumer. This is a on ongoing process 1-3 years. Mix our social and paid media with offline platforms and more face to face events as well.
Technological We are instore sales only. Use online platforms to show product and drive instore sales. Long-term Use our social platforms and digital media to communicate our value proposition
Economic We are a startup so we work on smaller budgets. We need to be strategic on where we spend our $. Short and longterm Investigate media opportunities that are best value for us.
Families are strained financially. We provide a service where shoppers can buy and sell product to us. Saving them $. Longterm Communicate our Buy, Sell and Repeat model.
Environment We are a resale store ultimately we recycle clothing. Good for environment, goof for bank account. Longterm Communicate buy, sell and repeat model.
Political We keep our eyes on tax policies and current events. Have to understand how political changes affect our sales and marketing tactics. Longterm Monitor activity
How do tax policies, wages affect our business. Tax and wages effect earning and our marketing budget. Short and longterm Stay tuned to activity
Legal No major legal issues at the moment None Longterm Monitor activity
Ethical We have a commitment to our customers to be transparent with our policies. Communicate policies for both buying and selling. Continue to add value to our shoppers. Longterm Continue to add value and communicate our company proposition.

You may also choose to use Porters 5 forces to outline your external environments: Just do one or the other no need for both.

FORCE WHAT’S HAPPENING? PRESSURE IMPACT
Competitive rivalry new competitor high less market share
Bargaining power of customers
Bargaining power of suppliers
Threat of new entrants
Threat of substitute products


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