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.