The external diagnosis is also known as the environmental scan. It is a synthetic study aimed at identifying the threats and opportunities of a company in the different markets it targets. This analysis consists of identifying external factors that may have a positive or negative impact on the company’s position in the market. It takes into account the salient and relevant features of the micro and macro environment. The study of the environment is crucial for decision making in business strategy. And for good reason, each change of environment can be a factor of success or, on the contrary, of failure.
In general, there are 3 main steps in performing a diagnosis:
- the identification of all the variables of market evolution,
- understanding of environmental opportunities,
- the implementation of actions.
This study includes several sections including:
- the salient features of the environment,
- the size, structure and evolutionary trends of the market,
- consumption and purchasing behavior,
- the motivations, attitudes and choice criteria of consumers and buyers,
- the study of distribution,
- competitive analysis.