There are three most commonly used analysis methods, including SWOT analysis, PEST analysis and Porter's five forces model analysis for enterprise strategic planning. They are:
SWOT analysis is mainly used to help enterprises find their own advantages, integrate resources and form the company's strategic planning;
PEST analysis method can deeply understand the products, understand the needs of users, understand what users want, so as to better optimize products and promotion activities based on these macro environment of an enterprise;
Porter's five forces model analysis is mainly used for competitive strategy analysis, which can effectively analyze the customer's competitive environment.
What is PEST Analysis?
PEST is a method to analyze the external macro environment of an enterprise from the perspective of corporate strategy from the four aspects of Politics, economy, Society and Technology. The formulation of corporate strategy cannot be separated from the macro environment, and PEST analysis can better grasp the status quo and changing trend of the macro environment from all aspects, which is conducive to the enterprise to make use of the opportunities for survival and development, and find out and avoid the possible threats to the environment as soon as possible.
PEST analysis refers to the analysis of macro environment, where P stands for Politics, E for Economy, S for Society and T for Technology. Here is a hospitality industry Example using PEST Analysis:
The hospitality industry has high barriers to entry due to the need for considerable capital investment and dominant industry leaders such as Hilton taking advantage of economies of scale. A PEST Analysis is performed to evaluate the current situation of the industry.
