Changes
→Demographic segment
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The '''Six Segment Analysis''' is a framework to analyze the general environment of a firm. The framework is frequently used in the analysis of [[competitive strategy]]. Six Segment Analysis can help managers to identify potential opportunities and threats. The six segments of the general environment are ''demographic'', ''sociocultural'', ''political/legal'', ''technological'', ''economic'', and ''global''.<ref name="Besanko, D. 2009">Besanko, D., Dranove, D., Shanley, M., & Schaefer, S. (2009). ''[[Economics of Strategy]]''. John Wiley & Sons. New York.</ref>
In contrast to [[Michael Porter]]'s [[Five forces analysis]], which focuses on the competitiveness of a specific industry, Six Segment Analysis target on broader macro-environmental trends. Such trends could potentially affect the profitability of the industry as a whole and influence the sustainability of the competitive strategies of a company.
== Composition ==
Below is a sample list of macro-environmental trends classified according to the six segments.<ref name="slideshare">{{cite web|url=http://www.slideshare.net/birubiru/environment-analysis-6953951 |title=Environment analysis|publisher=slideshare.net|accessdate=2015-02-14}}</ref>
=== Natural ===
*sensitivity to the environment
*Growth of importance and pressure
*Reduce pollution
*Renewal of energy
*Global warming
=== Sociocultural segment ===
*Women in the workplaces
*Workforce diversity
*Attitudes about quality of worklife
*Concerns about environment
*Shifts in work and career preferences
*Shifts in product and service preferences
=== Political/legal segment ===
*Antitrust laws
*Taxation laws
*Deregulation philosophies
*Labor training laws
*Educational philosophies and policies
=== Technological segment ===
*Product innovations
*Applications of knowledge
*Focus of private and government-supported R&D expenditures
*New communication technologies
=== Economic segment ===
*Inflation rates
*Interest rates
*Trade deficits or surpluses
*Budget deficits or surpluses
*Personal savings rate
*Business savings rates
*Gross domestic product
=== Global segment ===
*Important political events
*Critical global markets
*Newly industrialized countries
*Different cultural and institutional attributes
== Interaction with other frameworks ==
When management analyzes a firm's strategic position, it is important to obtain a good understanding of the external environment of the company. Typically the external environment analysis consists of ''general environment'', ''industry environment'' and ''competitor environment''.<ref name="pradeeploganathan">{{cite web|url=http://pradeeploganathan.com/management/external-environment-opportunities-threats-industry-competition-and-competitor-analysis/ |title=External Environment, Opportunities, Threats, Industry competition and Competitor analysis. | Pradeep Loganathan |publisher=pradeeploganathan.com|accessdate=2015-02-14}}</ref> Six Segment Analysis provides insights on the threats and opportunities existing in the general environment.
While a very popular framework for the industry environment analysis is the [[Five forces analysis]], [[strategic group]] is a substructure of an industry that may play a role in understanding performance differences among firms.<ref name="Besanko, D. 2009"/>
Competitor analysis typically starts with an identification of the [[market structure]] and proceed with complex strategic decision making analysis of [[Game Theory]].
==See also==
* [[PEST analysis]] PEST is the more commonly used term for six segment analysis
* [[Market environment#PESTEL analysis]]
==References==
{{Reflist}}
[[Category:Business planning]]
[[Category:Strategic management]]
{{orphan|date=April 2015}}
{{notability|date=April 2015}}
}}
The '''Six Segment Analysis''' is a framework to analyze the general environment of a firm. The framework is frequently used in the analysis of [[competitive strategy]]. Six Segment Analysis can help managers to identify potential opportunities and threats. The six segments of the general environment are ''demographic'', ''sociocultural'', ''political/legal'', ''technological'', ''economic'', and ''global''.<ref name="Besanko, D. 2009">Besanko, D., Dranove, D., Shanley, M., & Schaefer, S. (2009). ''[[Economics of Strategy]]''. John Wiley & Sons. New York.</ref>
In contrast to [[Michael Porter]]'s [[Five forces analysis]], which focuses on the competitiveness of a specific industry, Six Segment Analysis target on broader macro-environmental trends. Such trends could potentially affect the profitability of the industry as a whole and influence the sustainability of the competitive strategies of a company.
== Composition ==
Below is a sample list of macro-environmental trends classified according to the six segments.<ref name="slideshare">{{cite web|url=http://www.slideshare.net/birubiru/environment-analysis-6953951 |title=Environment analysis|publisher=slideshare.net|accessdate=2015-02-14}}</ref>
=== Natural ===
*sensitivity to the environment
*Growth of importance and pressure
*Reduce pollution
*Renewal of energy
*Global warming
=== Sociocultural segment ===
*Women in the workplaces
*Workforce diversity
*Attitudes about quality of worklife
*Concerns about environment
*Shifts in work and career preferences
*Shifts in product and service preferences
=== Political/legal segment ===
*Antitrust laws
*Taxation laws
*Deregulation philosophies
*Labor training laws
*Educational philosophies and policies
=== Technological segment ===
*Product innovations
*Applications of knowledge
*Focus of private and government-supported R&D expenditures
*New communication technologies
=== Economic segment ===
*Inflation rates
*Interest rates
*Trade deficits or surpluses
*Budget deficits or surpluses
*Personal savings rate
*Business savings rates
*Gross domestic product
=== Global segment ===
*Important political events
*Critical global markets
*Newly industrialized countries
*Different cultural and institutional attributes
== Interaction with other frameworks ==
When management analyzes a firm's strategic position, it is important to obtain a good understanding of the external environment of the company. Typically the external environment analysis consists of ''general environment'', ''industry environment'' and ''competitor environment''.<ref name="pradeeploganathan">{{cite web|url=http://pradeeploganathan.com/management/external-environment-opportunities-threats-industry-competition-and-competitor-analysis/ |title=External Environment, Opportunities, Threats, Industry competition and Competitor analysis. | Pradeep Loganathan |publisher=pradeeploganathan.com|accessdate=2015-02-14}}</ref> Six Segment Analysis provides insights on the threats and opportunities existing in the general environment.
While a very popular framework for the industry environment analysis is the [[Five forces analysis]], [[strategic group]] is a substructure of an industry that may play a role in understanding performance differences among firms.<ref name="Besanko, D. 2009"/>
Competitor analysis typically starts with an identification of the [[market structure]] and proceed with complex strategic decision making analysis of [[Game Theory]].
==See also==
* [[PEST analysis]] PEST is the more commonly used term for six segment analysis
* [[Market environment#PESTEL analysis]]
==References==
{{Reflist}}
[[Category:Business planning]]
[[Category:Strategic management]]
