06-16-2022, 09:49 AM
The 2nd technique that aspiring business analysts need to be aware of is Porter's five forces. Similarly to a PESTLE analysis, Porter's five forces framework is used to examine the external environment that a business operates within. However, it does this with a different focus; one would use Porter's Five Forces Framework to examine an industry. When using this model, there are five categories to examine; these are: Industry Competitors, New Entrants, Substitutes, Buyers and Suppliers. Within these categories, there are a number of factors that you should consider. Doing this helps a company to identify factors within the industry that could affect them - be it positively or negatively. The third technique to feature in the article is SWOT. SWOT is an acronym standing for Strengths, Weaknesses, Opportunities and Strengths. The SWOT analysis is used to identify areas of strength. Opportunity in a business so that activities can be focused on this area. It is also used to identify where the greatest weaknesses and threats lay.
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