In each of these areas, consideration is given to the factors which may affect your business. PEST stands for: political, economic, social and cultural, and technological. We are going to look at two of these: PEST Analysis and Michael Porter’s Five Forces Model. Many techniques exist which can be used to understand the external environment. SWOT analysis usually starts with external analysis – understanding the environment in which the business is going to operate. To illustrate how to conduct a SWOT analysis, we will use as an example Blackberry (at that time Research in Motion or RIM) in 1996 when it launched the RIM 900 – its first keyboard based device.Įxternal Analysis: Opportunities and Threats Once your SWOT analysis is complete you will be able to further develop your business idea, improving it with the feedback that you receive from your peers and then testing it with customers. The technique can be used for a product, a business unit or a whole company. It is also known as Internal and External Analysis because it examines the potential business’s Strengths and Weaknesses, which are internal to the business, and the Opportunities and Threats, which are external. SWOT analysis (or Strengths, Weaknesses, Opportunities and Threats) is a technique that is used to analyse the potential competitive position of your business. It will help people in existing organisations better focus on ideas that will provide more strategic benefit.

SWOT analysis can be used to develop better understanding of the potential business success of a tech startup and it can also be used to understand the potential of an idea that you might have in an existing organisation. We will look at applying analytical techniques to develop a SWOT analysis.

In this post we will further develop your business idea by understanding its potential for commercial success in the market.

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