Strategic Analysis and the External Environment.

Question(s):
1. Explain the five forces that drive profitability in an industry?

2. What are some of the limitations (or caveats) in using five-forces analysis?

3. What are “strategic groups?” How would you know the “strategic groups” in your industry? What kind of dimensions should you choose when mapping the “strategic groups”? Why is it important to understand “strategic groups”?

4. Discuss and describe the six elements of the external environment.