External analysis

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Also called external diagnosis, the external analysis studies the external environment of a brand, i.e. all the external elements that can impact its activity. Properly performed, it can accurately identify :

  • opportunities that can help the brand grow,
  • threats that may affect the brand’s business.

The external analysis focuses on several elements, including:

  • the macro-environment: the political, economic, social, technological, ecological and legal factors that can affect the micro-environment,
  • competition: intra-industry competition, new competitors, suppliers, customers and substitutes
  • the market: supply and demand.

The external analysis goes hand in hand with the internal analysis for an effective assessment of the situation before any development of a marketing strategy.