Editing Situation analysis (section)

== 5C analysis ==
While a situation analysis is often referred to as the "[[3Cs model|3C analysis]]", the extension to the 5C analysis has allowed businesses to gain more information on internal and external factors to aid in strategic decision-making.<ref name=PlatExec>{{cite web|url=https://www.platformexecutive.com/knowledge/product-development/market-research/explainer-what-is-a-5c-analysis/|title=Explainer: What is a 5C analysis?|publisher=Platform Executive}}</ref> The 5C analysis is considered the most useful and common way to analyze the market environment, because of the extensive information it provides.<ref name=sitan>{{cite web|url=http://www.netmba.com/marketing/situation/|title=Situation Analysis|publisher=NetMBA Business Knowledge Centre|accessdate=22 March 2012}}</ref>

=== Company ===
The company analysis involves evaluation of the company's objectives, strategy, and capabilities. These indicate to an organization the strength of the [[business model]], whether there are areas for improvement, and how well an organization fits the external environment.<ref name=anderson>{{cite journal|first= Gene|last=Anderson|title=Framework for marketing planning|journal=[[University of Michigan Business School]]|date=March 2005}}</ref>
* Goals and objectives: An analysis on the mission of the business, the industry of the business and the stated goals required to achieve the mission.
* Position: An analysis on the [[marketing strategy]] and the [[marketing mix]].
* Performance: An analysis on how effective the business is achieving their stated mission and goals.
* Product line: An analysis on the products manufactured by the business and how successful it is in the market.<ref name=sitan />

=== Competitors ===
The [[competitor analysis]] takes into consideration the competitors position within the industry and the potential threat it may pose to other businesses. The main purpose of the competitor analysis is for businesses to analyze a competitor's current and potential nature and capabilities so they can prepare against competition. The competitor analysis looks at the following criteria: 
*Identify competitors: Businesses must be able to identify competitors within their industry. Identifying whether competitors provide the same services or products to the same customer base is useful in gaining knowledge of direct competitors. Both direct and indirect competitors must be identified, as well as potential future competitors.
*Assessment of competitors: The competitor analysis looks at competitor goals, mission, strategies and resources. This supports a thorough comparison of goals and strategies of competitors and the organization.
*Predict future initiatives of competitors: An early insight into the potential activity of a competitor helps a company prepare against competition.<ref name=anderson />

=== Customers ===
Customer analysis can be vast and complicated. Some of the important areas that a company analyzes includes:<ref name=sitan />
*[[Demographics]]
**[[Advertising]] that is most suitable for the demographic
**[[Market (economics)|Market size]] and potential growth
**Customer wants and needs
**[[Motivation]] to buy the product
**[[Distribution (business)|Distribution]] channels (retail, online, wholesale, etc...)
**Quantity and frequency of purchase
**Income level of customer

=== Collaborators ===
Collaborators are useful for businesses as they allow for an increase in the creation of ideas, as well as an increase in the likelihood of gaining more business opportunities.<ref>{{cite web|last=Verganti|first=Roberto |title=Quantity vs. Quality in Collaborations|url=http://blogs.hbr.org/cs/2011/06/quantity_vs_quality_in_collabo.html|publisher=[[Harvard Business Review]]|accessdate= June 15, 2011 
}}</ref> The following type of collaborators are:
*Agencies: Agencies are the middlemen of the business world. When businesses need a specific worker who specializes in the trade, they go to a recruitment agency.<ref>{{cite web|last=|first=|title=What is an employment agency or temp agency?|url=http://www.settlement.org/sys/faqs_detail.asp?faq_id=4001076|website=settlement.org|publisher=Ontario Council of Agencies Serving Immigrants|accessdate=March 26, 2012}}</ref>
*[[Suppliers]]: Suppliers provide raw materials that are required to build products. Different types of Suppliers include manufacturers, wholesalers, merchants, franchisors, importers and exporters, independent crafts people and drop shippers. Each category of suppliers can bring a different skill and experience to the company.
*[[Distributors]]: Distributors are important as they are the holding areas for inventory. Distributors can help manage manufacturer relationships as well as handle vendor relationships.<ref>{{cite web|last=Jordan|first=Peter |title=Distribution 25: Supply-Chain Advantages|url=http://www.crn.com/news/channel-programs/18824902/distribution-25-supply-chain-advantages.htm|publisher=CRN|accessdate=June 22, 2001|archive-url=https://web.archive.org/web/20120821084151/http://www.crn.com/news/channel-programs/18824902/distribution-25-supply-chain-advantages.htm|archive-date=21 August 2012|url-status=dead}}</ref>
*Partnerships: Business partners would share [[asset]]s and [[Liability (financial accounting)|liabilities]], allowing for a new source of capital and skills.<ref>{{cite web|title=Partnership|url=http://www.smallbusiness.wa.gov.au/partnership/|publisher=The Government of Western Australia – Small Business Development Corporation|accessdate=22 March 2012|archive-url=https://web.archive.org/web/20120708132054/http://www.smallbusiness.wa.gov.au/partnership/|archive-date=8 July 2012|url-status=dead}}</ref>

Businesses must be able to identify whether the collaborator has the capabilities needed to help run the business as well as an analysis on the level of commitment needed for a collaborator-business relationship.<ref name=anderson />

=== Climate ===
To fully understand the business climate and environment, many factors that can affect the business must be researched and understood. An analysis on the climate is also known as [[PEST analysis]]. The types of climate/environment firms have to analyse are:
* Political and regulatory environment: An analysis of how actively the government regulates the market with their policies and how it would affect the [[production (economics)|production]], [[distribution (business)|distribution]] and [[Sales|sale]] of the [[goods and services]].
* Economic Environment: An analysis of trends regarding [[macroeconomics]], such as [[exchange rates]] and [[inflation rate]], can prove to influence businesses.<ref name=sitan />
* Social/cultural environment: An analysis interpreting the trends of society,<ref name=sitan /> which includes the study of [[demographics]], [[education]], [[culture]] etc.
* Technological analysis: An analysis of technology helps improve on old routines and suggest new methods for being cost efficient. To stay competitive and gain an advantage over competitors, businesses must sufficiently understand technological advances.<ref>{{cite web|title=PEST Analysis|url=http://www.netmba.com/strategy/pest/|publisher=NetMBA Business Knowledge Centre|accessdate=March 28, 2012}}</ref>