47. Situational AnalysisBy Roger Bryan
The situational analysis is where you are going to evaluate the market where your company is in. It is also known as the 5 C’s. With the situational analysis, you will be able to understand the internal, the micro-environment and the macro-environment.
These following aspects must be on your business plan:
Company – point out what is your product/service, what is your image in the market, which technologies you use, what is your experience, culture and goals.
Collaborators – indicate who are your distributers, your suppliers and your alliances.
Costumers – market size and segments, benefits costumers are looking for, what is their motivation to buy, how long takes the decision, retail channel, sources of information, process of buying, the frequency they buy the product, quantity and trends.
Competitors – who are your competitors, which are the products they sell and their market shares, which are their strengths and weaknesses. Think outside the box in this one. Remember that the first big competitor of the train was the telephone. So the more complete your report is, the better.
Climate (or PEST analysis) – describe the political environment, the economic environment, the social environment and the technological environment. You will understand better this information on Current Macro-Environment.