What technique is used to analyse the External Business Environment?

Porter's Five Forces Analysis is a technique used to analyze the industry or business domain within

which an organization operates. It helps to identify the competitive forces that influence the

profitability and attractiveness of a market. These forces include the threat of new entrants, the

bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products or

services, and the intensity of competitive rivalry. This analysis is essential for understanding the

external business environment and for strategic planning.

Reference:

Business Analysis.pdf, Chapter 3, Strategy Analysis