June 2011
Beginner
294 pages
4h 15m
English
Content preview from What You Need to Know about StrategyBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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CHAPTER 2
FROM THE OUTSIDE
WHAT IT'S ALL ABOUT 
- The importance of segmenting the industry
- The concept of industry attractiveness
- The macro forces that shape industries
An organisation does not operate in a vacuum. Any strategy has to fit with the characteristics of its external environment, so let's begin from the outside. Given that multiple aspects of the environment could be evaluated – customers, markets, competitors, regulations, societal trends – where should you start? Clearly, a certain amount of data is needed to familiarise yourself with the environment, but how much should you collect?
Focus on data that answer a few basic questions ...
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