企业环境分析方法介绍(英文版).docxVIP

Environment analysisAccording to Ginter(1990), environment means the surroundings of an organization; the climate in which the organization functions. The environment can have a huge influence on organization’s position, performance and strategy. Therefore, it is necessary to study environment. There are many ways to do environment analysis. Among them, Porter’s 5 forces, PEST and Scenario analysis are very useful.1.Porter’s 5 forces theory1. Brief description The model of the five competitive forces was developed by Michael Porter in 1980. Porter’s model is based on the insight that a corporate strategy should meet the opportunities and threats in the organization’s external environment. Porter has identified five competitive forces that shape every industry and every market. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. According to Porter (1980), his model of 5 forces can be shown as following. 2. Detail analysis2.1 Bargaining Power of SuppliersThe term ‘suppliers’ contains all sources for inputs that are needed in order to provide goods or services. Suppliers, if powerful, can exert an influence on the producing industry, such as selling raw materials at a high price, offer bad services and products.Suppler bargaining power is likely to be high when: (use 2)The market is dominated by a few large suppliersThe switching costs from one supplier to another are highThere are no substitutes for the particular inputThere is the possibility of the supplier integrating forwards.The relationship to powerful suppliers can potentially reduce strategic options for the organization.2.2 Bargaining Power of CustomersBargaining power of customers is likely to be high when (use 1-2)They buy large volumes. (concentration of buyers)The supplying industry comprises a large number of small operatorsThe product is not of strategically importance for the customerSwitching to an alternative product is relatively si