1. You are in the business of running a
fast food chain. McDonald’s and Pizza
hut are threatening your business .
Discuss one major step you would take
by environmental analysis.
ABHIRAJ P GEORGE
S2 MBA
ROLL NO. 02
2. ENVIRONMENTAL
ANALYSIS
• Environmental analysis is relatively qualitative
and involves the identification of and analysis
of environmental variables, which affect the
business.
• Some frameworks of environmental analysis
have received large amounts of attention in the
world of business management literature, such
as SWOT analysis and PESTEL analysis.
4. Identify the Weaknesses of Your
Competitors.
• Determine the strengths and weaknesses of
your competitor through an exhaustive and
critical examination of his literature, his
products and services.
• The most effective way to evaluate a
competitive service is to pose as a customer.
5. • You can also talk with the customers and
suppliers of your competitor.
• Fish out important information such as defects
in and dissatisfactions with what your
competitor sells or makes.
• Once you know where your competitor is
vulnerable, you can concentrate on the superior
features that you have to offer
6. Determine Your Vulnerable
Spots.
• A careful examination of your competitor’s
product and methods can help you determine
your own soft spots — those points at which you
are vulnerable. Knowing your weak points will
force you to seek out ways to improve them or
compensate for them.
• Understanding your weaknesses can point the
way toward what will be unique about your
business, and help you target what will benefit
your customer.
7. Know What Makes Your Customers
Buy.
• Frequently, a customer fails to buy because a
business neglects to mention the one
consideration that weighs heavily with her or
him. It is not always easy to figure out what the
factor is.
8. Learn from the Mistakes of
Others.
• Every businessperson should learn from his or
her mistakes, but you can also learn from the
mistakes your competitor makes.
9. Be on a Lookout for Good Ideas.
• Good ideas are everywhere, if you know where
to look. If it is true that you can learn from a
competitor’s mistakes, it is equally true that
you can cash in on a rival’s successes.
• This does not mean you should be blindly
imitative. It does mean that you ought to be
alert to ideas that can stimulate your own
thinking.
