Write a detailed report of your analytical findings and strategic issues from your analysis of the industry environment. Explain that this analysis focuses on the strategic elements of industry environment and concerns or opportunities of how the strategic elements fit with the strategy as reported in the Strategic Frame Assessment previously delivered to the VP. Conduct a competitive analysis of the firm, using the theories and models of strategic analysis. Are their vital PEST (Political, Environmental, Social, Technological) factors shaping the industry conditions? Which competitive forces (Porter’s 5-Forces Model) on the firm are most intense? Analyze the strategic position and direction of the firm. Evaluate its corporate strategy. In which market segments does the firm participate? What are the buyer’s purchase criteria and basis of competition (Key Success Factors) for the market segment? Should the firm reposition its resources and capabilities (change its product scope, vertical scope, or geographical scope) in anticipation of changes in industry structural factors or competitive forces? Articulate concerns or opportunities about the firm’s strategic fit with its competition, suppliers, and customers. Evaluate the degree to which the organizational structure and management systems enable the execution of the corporate strategy. Consider the organization of functional capabilities and value chain capabilities of the firm. Assuming the firm employs a diversification or vertical integration strategy, could costs be reduced or revenue be increased by economizing the scale of diversification? Could costs be reduced or revenue be increased by downsizing or outsourcing activities in the vertical scope of the firm?
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