Meeting 6 Reflection – External Analysis
In meeting 6 of our class Technopreneurship, our professor instructed us to write a reflection about External Analysis. External Analysis is an activity of examining the environment of the industry companies, and the industrial factors such as competitions. On the other hand, in macro scale, External Analysis considering the global, technological and macroeconomic analysis. The main purpose of the external analysis is that to determine or identify the threats and opportunities of an industry that will somehow drive to growth, and profitability of the company. External Analysis it concerns industry which refers to the group of business companies that offer products and services such as food and beverages, and external analysis also concerns to market which refers to the group of customers in the market that has different attributes and different kind of demands it includes the demography and behavior of customers. In addition, External Analysis is referring to the analysis outside of the company, unlike Internal Analysis which to conduct analysis inside the company, such as analyzing large set of data in the system, discovering patterns and many other. In External Analysis, it is the activity which is to conduct analysis outside of the company, such as analysis the behavior of the customers, analyzing the other competitive companies, and discovering patterns of other companies of what are the activities that drive them to the top of ranking. Furthermore, SWOT Analysis which stands for Strength, Weaknesses, Opportunities and Threats Analysis. SWOT Analysis is not actually just for Internal Analysis but it could be applied in External Analysis, such as identifying the Strengths of other companies, identifying what are their weaknesses so that we could plan ahead, and anticipate unwanted events that might arise, also identifying opportunities that might help to the company, and identifying the threats of others companies, and not just the other companies but also threats from the environment of the industry.
In External Analysis, companies could conduct analysis for the supply chain such that the system of supply chain of the company is involved which is converting the products and services from raw into a fine and high quality products and services so that it will be transported immediately to the customers. In addition, the supply chain of the company is considering the raw materials, the supplier of raw materials, manufacturers, the distributor of the products, the retailer, and the customers. External Analysis, is not just analyzing the processes outside the company but also analyzing the supply chain of the company, such that if the system of supply chain of the company is efficient enough or not. Also, supply chain means it includes the raw materials from the suppliers, such as metal, glass, fabrics, and many other that can be obtained from the other suppliers which later on will be processed into fine and high quality products so that it could be transported to the customers effectively. Moreover, External Analysis is not just referring or could be applied to the supply chain of the company like in the warehouse but also refers to the supply chain for the eCommerce websites. Because, in eCommerce, there is also a supply chain, and many other competitors that could provide their strengths, weaknesses, opportunities, and threats. Because there are also customers online, there are potentials buyers and subscribers to the products and services that the eCommerce offers, and there supply chain system that need to be monitored from time to time.
Moreover, External Analysis is also known as to PEST Analysis which stands for Political, Economic, Social, and Technological Analysis which is focuses more on the political, economic, social, and technological side. For the Political side, it includes many issues such as trade barriers from international regulatory environment changes. For Economic side, it includes different kind of issues like, the interests rate of the customers to the products and services, foreign exchange rates, and as well as economic inflation rate of the country. For Social side, it includes many kinds of issues like the population rate, and the age of the individuals might also be involved. And for the Technological side, it includes different kind of issues like technological advancement, trends of the technology, and technological investment might also be involved. Furthermore, External Analysis or PEST Analysis is very important because it can help for generating business plans, and business strategic actions so that the company can compete to the strong competitors. And also, so that the company is updated to the trend in the business industry. It is not just to be updated but also to earn more marketing growth, and for the company to be a successful and will run for many years. Moreover, External Analysis is also focusing on the competitors and how competitive is the company, it includes the rival of the company, and potentials threat of the other company, the buyers and suppliers and how often they offer bargains, and the threats of the substandard goods and services. For the rivalry of the company, it includes measuring the level of growth rate of the other company, and also analyzing the products it offers, the loyalty of the customers, and why they switch brands easily. For the buyers and customers side, it is also important to analyze how good they are at bargaining or how often they bargain because it could affect the marketing growth of the company. Also, so that the company could identify or determine the right market price for the products and services to offer. And for the threat of the substandard goods and services of the providers or of the company, it includes measuring the level of the impact to the companies that manufactures good and high quality products. So that they could find immediate solution that if the products and services becomes a threat to the market growth of the company, and so that they could provide a good and high quality products and service to the customers. Thus, if the company determines these factors and analyze those thoroughly they will immediately produce a very good solutions to the threats, and could identify the strength and weaknesses of other company, then eventually will find an opportunity for the company to be ranked higher in the competition.
With External Analysis, it could help us to make a right decisions, because in business it is really important that we decision to the right choice, we should decide what is right for the market and for the business. Because to be good at making decision, we will most likely be successful in the business, and to be to the top ranking in the competition. Also, External Analysis and Internal Analysis could also be applied in our life, such as we could identify what are our strengths that could help us achieve our goals, the weaknesses that we need to overcome, and we could find good opportunities for the to move forward as well as for achieving our goals, and threats that could destroy our plans, preventing us to achieve our goals, and to prevent us to be successful technopreneur. Moreover, it is important that we determine the things that we are good at, and the things we do not like, by determining these factors, we could decide for the business and for ourselves of what is good for us as well as for the company. And it help us to be more competitive and to be more of a rival to the other company. Also, understanding environment of the business operations is the key for us to make a right decision, for us to properly plan and will allow us to anticipate the opportunities and threats which associates with our business areas, thus, the External analysis and Internal Analysis could help to us achieve that factors that needed to be acquired for us to be successful and achieve our goals in business competitions, and also for our company to grow stronger and bigger.
