PEST Analysis, Porter’s 5 Forces and Sustainability Strategies Margarita Antonova Volunteer Telerik Academy academy.telerik.com Business System Analyst Telerik Corporation

2  PEST Analysis  Porter’s 5 Forces  Growth Strategies  Contingency Strategies  The Project: your Business Plan

Sustainability Questions Are we making a profit? How do we continue to sell at a profit?

Analysis of the external environment and more specifically the Political, Economic, Social, Technological, Legal and Environmental factors.

5  What is the political situation of the country and how can it affect the industry?  What are the prevalent economic factors?  How much importance does culture has in the market and what are its determinants?  What technological innovations are likely to pop up and affect the market structure?  Are there any current legislations that regulate the industry or can there be any change in the legislations for the industry?  Intellectual property rights for software  What are the environmental concerns for the industry?

Porter’s 5 Forces Model Framework for industry analysis and business strategy development that helps determine the competitive intensity and attractiveness of a market.

Threat of new competition Threat of substitute products or services Bargaining power of customers (buyers) Bargaining power of suppliers Intensity of competitive rivalry – barriers of entry

Sustainability Strategies Framework for industry analysis and business strategy development that helps determine the competitive intensity and attractiveness of a market.

9   Growth strategies:   Organic growth   Research and development – the cradle of innovation and staying in the business   Cost-Benefit Analysis   Outside sources:   Mergers – combining companies   Acquisitions – acquiring companies   Strategic alliances – independent organizations that pursue the same goals together

10   Contingency Strategies   Definition – a risk management strategy that aims to minimize the impact of a foreseeable events and to plan for how the business will resume normal operations after such events   Types:   Preparing for predictable and quantifiable crises   Preparing for unexpected and unwelcome events

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  Operations Plan   HR and IT   Financial Plan   Financing and Expected Break Even Point   Risk Analysis   PESTLE 12   Executive Summary   Define Product   Business Environment   Describe Industry   Porter’s5 Forces Analysis   Marketing Plan   SWOT Analysis   7Ps for Product   Define Target Market   Sales Strategy

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