3.

INDUSTRY AND
ENVIRONMENTAL ANALYSIS:
BUSINESS OPPORTUNITIES
IDENTIFICATION

GROUP 3
What is Industry and Environmental Analysis?

•Industry Analysis:

•Market Structure: Examining the type of market (e.g., monopoly, oligopoly, perfect competition).

•Key Players: Identifying major competitors and their market share.

•Trends: Analyzing current trends in technology, consumer behavior, and economic conditions.

•Regulatory Environment: Understanding laws and regulations affecting the industry.

Environmental Analysis:

•PESTEL Analysis: Evaluating Political, Economic, Social, Technological, Environmental, and

Legal factors that can affect the industry.

•SWOT Analysis: Assessing internal Strengths and Weaknesses, along with external
Opportunities and Threats.

•Stakeholder Analysis: Identifying and understanding the interests of various stakeholders

(e.g., customers, suppliers, government).
Purpose:

•To identify opportunities and threats in the market.

•To inform strategic planning and decision-making.

•To enhance competitive advantage by adapting to environmental changes.

By conducting thorough industry and environmental analyses, businesses can

position themselves more effectively in the marketplace and respond proactively to
challenges and opportunities.
what is Business Opportunities Identification?

Business opportunities identification is the process of discovering

and assessing potential avenues for growth and profit within a
market. This involves analyzing various factors to pinpoint viable
ideas or projects that can lead to successful business ventures.
Here are the key components of this process:
•Market Research:

•Analyzing market trends, customer needs, and gaps in the market.

•Studying competitors to identify underserved segments or areas for innovation.

•Trend Analysis:

•Keeping an eye on emerging trends in technology, consumer behavior, and economic shifts.
•Understanding macroeconomic factors that may create new opportunities.

•Brainstorming and Ideation:

•Generating a wide range of ideas through brainstorming sessions, workshops, or creative thinking
techniques.

•Encouraging input from diverse teams to foster innovative

thinking.
•Feasibility Study:

•Evaluating the practicality of identified opportunities by assessing factors like market size, cost,
potential revenue, and resource requirements.
•Conducting SWOT analysis to understand strengths, weaknesses, opportunities, and threats
associated with each idea.

•Validation:

•Testing ideas through prototypes, pilot programs, or market surveys to gauge customer interest and
viability.
•Gathering feedback to refine the concept.

•Business Model Development:

•Creating a business model that outlines how the opportunity will be pursued, including revenue
streams, cost structures, and value propositions.
Importance:

•Identifying business opportunities helps organizations innovate and stay competitive.

•It allows businesses to adapt to changing markets and consumer demands.

•Successful identification can lead to increased market share, revenue, and long-term sustainability.

Overall, effective business opportunities identification requires a combination of analytical skills,

creativity, and an understanding of market dynamics.
3.1 Principles,
Tools, and
Techniques
 Definition of Principles (3.1)

Principles refer to fundamental truths or propositions that serve as the foundation for a
system of belief, behavior, or reasoning. In the context of business analysis, strategic
planning, or project management, principles guide decision-making and help ensure
alignment with the organization’s goals and values.

Key Principles and Examples

1.Value Creation:

•Definition: Focus on delivering products or services that provide tangible benefits to customers
and stakeholders.

•Example: A software company develops a tool that streamlines project management, saving
clients time and increasing productivity.
2.Customer-Centric Approach:

•Definition: Prioritize understanding and meeting customer needs and preferences.

•Example: A retail brand conducts surveys and focus groups to tailor its product offerings based on
customer feedback.

3.Data-Driven Decision Making:

•Definition: Use data analytics to inform strategies, assess performance, and make
informed choices.

•Example: A marketing team analyzes customer behavior data to optimize advertising

campaigns and target specific demographics.
4.Agility:

•Definition: Embrace flexibility and responsiveness to adapt to changes in the market or

environment.

•Example: A tech startup iterates on its product features based on user feedback and
changing industry trends.

5.Collaboration:

•Definition: Foster teamwork and communication across departments to leverage diverse

perspectives and skills.

•Example: A cross-functional team from marketing, sales, and product development works
together to launch a new product, ensuring all viewpoints are considered.
Definition of Tools (3.1)

Tools are structured methods or instruments that assist in analysis, problem-solving,

decision-making, or project management. In business contexts, tools are used to facilitate
understanding, gather data, and streamline processes to achieve strategic objectives.

Key Tools and Examples

1.SWOT Analysis:

Definition: A framework for identifying an organization’s Strengths, Weaknesses,

Opportunities, and Threats.

Example: A local café conducts a SWOT analysis to determine its strong community
presence (Strength), limited seating space (Weakness), the rising trend of health-
conscious consumers (Opportunity), and competition from a new coffee shop (Threat).
2.PESTEL Analysis:

•Definition: A tool for analyzing the external environment based on Political, Economic,
Social, Technological, Environmental, and Legal factors.

•Example: An automotive company uses PESTEL analysis to evaluate how government

regulations (Legal), economic downturns (Economic), and growing environmental concerns
(Environmental) might impact its business strategy.

3.Porter's Five Forces:

•Definition: A model that assesses industry competitiveness by analyzing five key forces:
competitive rivalry, threat of new entrants, bargaining power of suppliers, bargaining power
of buyers, and threat of substitutes.

•Example: A smartphone manufacturer uses Porter’s Five Forces to evaluate the

competitive landscape, discovering that high buyer power (due to many available
alternatives) requires them to enhance product differentiation.
4.Business Model Canvas:

•Definition: A visual tool that outlines the key components of a business model, including value
propositions, customer segments, channels, and revenue streams.

•Example: A startup uses the Business Model Canvas to map out its strategy, clearly identifying its target
market, unique value proposition, and distribution channels.

Data Analytics Software:

•Definition: Tools like Excel, Tableau, or Google Analytics that help analyze data and
visualize trends.

•Example: An e-commerce company employs Google Analytics to track website traffic and
customer behavior, enabling them to optimize their marketing strategies.
Definition of Techniques (3.1)

Techniques refer to specific methods or approaches used to achieve a particular outcome

or solve a problem. In business contexts, techniques are applied to gather insights, facilitate
collaboration, or develop strategies, often based on established principles and tools.

Key Techniques and Examples

1.Brainstorming:

1. Definition: A creative technique for generating a wide range of ideas in a group

setting, encouraging open discussion without immediate criticism.

2. Example: A marketing team holds a brainstorming session to come up with

innovative campaign ideas for an upcoming product launch, resulting in diverse
concepts that can be further refined.
2.Focus Groups:

•Definition: A qualitative research technique that gathers a small group of people to discuss their
perceptions, opinions, and attitudes toward a product or service.

•Example: A company conducts a focus group with potential customers to gather feedback on a new
product design, helping them identify features that resonate with the target audience.

3.Surveys and Questionnaires:

•Definition: Tools used to collect quantitative data from a larger audience, often involving
structured questions to measure opinions, behaviors, or demographics.

•Example: An organization sends out a customer satisfaction survey to gather insights on

service quality, allowing them to identify areas for improvement.
4.Scenario Planning:

•Definition: A technique for envisioning and preparing for different future scenarios by
considering various external factors and potential changes.

•Example: A financial institution engages in scenario planning to assess how economic

shifts, regulatory changes, or technological advancements might impact its business model
over the next five years.

5.Prototyping:

•Definition: Creating a preliminary version of a product or service to test concepts and

gather user feedback before full-scale production.

•Example: A tech company develops a prototype of a new app to conduct user testing,
allowing them to identify usability issues and improve functionality before launch.