Cite this article as:"Situation Analysis – Entrepreneurship," in The Business Professor, updated July 18, 2014, last accessed May 30, 2020, https://thebusinessprofessor.com/lesson/situation-analysis/.
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The situation analysis covers a mix of information uncovered in the feasibility and strategic analyses. Below is an outline of the information that should be included in the situation analysis.
- Background of Venture – Give the general background of the business or the people involved. This helps provide scope from which to derive your strengths and weaknesses.
- (SWOT) – Incorporation the SWOT information helps you understand your business and how it fits into the market.
- Strengths and Weaknesses of Venture
- Market Opportunities and Threats
- Note: Incorporate the PESTEL factors as relevant.
- Describe any influencing factors that may affect the marketability of the product.
- Number – How many competitors are in the market?
- Market Share – What share of the market do they occupy?
- Competitive Positions – What are the key competitive strategy of your competitors? (Price, Quality, etc.)
- Strengths – What are the outstanding strengths of each competitor?
- Weaknesses – What are the competitor’s weaknesses? (Include personnel, operations, marketing, finances, etc.)
- What is the current total market demand for the product or service?
- How does production capability compare with demand?
- What are the future demand levels?
- Is current demand in any way correlated with market trends or ancillary products or services?