PEST five forces explanation

The newsfeed provides raw data. We can convert that into information by combining  two classic analysis tools.

The first tool is called the Porter Five Forces method, and identifies the potential pressures from other firms:

  • pressures from Suppliers
  • pressures from Customers.
  • direct competition from other firms in the same Industry
  • the threat of competition from New Entrants
  • the threat of competition from Substitutes

The second tool is called a PEST analysis, and looks at the larger forces and trends at work within society:

  • Political
  • Economic (plus Environmental and now Energy issues)
  • Social
  • Technological

By placing each news items into one or more of these headings we form a picture of all the emerging trends and forces that might affect a business:

You can use the drop-down menus under ‘Big Picture’ to see the latest detail for each of these headings.

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