Conduct a Situation and Company Analysis
Discuss factors that affect your consumers’ purchasing power and spending patterns. What is the economic environment that you are operating in? Is it a growth, recovery or recession? What is the current interest rate i.e. is it increasing or decreasing? What is consumer confidence like?
The technological environment is constantly changing. New technologies and trends can create new markets and can influence you consumers and competitors. What are the trends in your industry? Are there new entrants in the market? Has a substitute product been introduced?
How many competitors does your selected company have? Who are the main competitors? What are the key selling points or competitive advantages of each competitor? What is your advantage over competitors? Is the market large enough to support you and competitors?
Consider the political environment for the areas that your business will trade and operate in. Is there a stable political system? Are there any licenses and regulations that you should be aware of?