5 - C ANALYSIS Dr.
M Manjunath
Shettigar
5C’S OF STRATEGIC MANAGEMENT
5C Analysis is a technique used to conduct situation analysis. A
situation analysis involves examining the external environmental
factors and internal organizational capabilities that impact how a
company operates.
5C Analysis is one of the most popular and useful frameworks in
understanding internal and external environments. It is an extension of
the 3C Analysis that originally included Company, Customers, and
Competitors.
Collaborators and Climate were later added to the analysis to make
it comprehensive.
5C’S OF STRATEGIC MANAGEMENT
COMPANY CUSTOMER
FIVE C’S
CLIMATE COMPETITORS
COLLABORATORS
5C’S OF STRATEGIC MANAGEMENT
Company
Product line
Image in the market
Technology and experience
Culture
Goals
Collaborators
Distributors
Suppliers
Alliances
5C’S OF STRATEGIC MANAGEMENT
Customers
Market size and growth
Market segments
Benefits that consumer is seeking, tangible and intangible.
Motivation behind purchase; value drivers, benefits vs. costs
Decision maker or decision-making unit
Retail channel - where does the consumer actually purchase the
product?
Consumer information sources - where does the customer obtain
information about the product?
Buying process; e.g. impulse or careful comparison
Frequency of purchase, seasonal factors
Quantity purchased at a time
Trends - how consumer needs and preferences change over time
5C’S OF STRATEGIC MANAGEMENT
Competitors
Actual or potential
Direct or indirect
Products
Positioning
Market shares
Strengths and weaknesses of competitors
5C’S OF STRATEGIC MANAGEMENT
Climate (or context)
The climate or macro-environmental factors are:
Political & regulatory environment - governmental policies
and regulations that affect the market
Economic environment - business cycle, inflation rate, interest
rates, and other macroeconomic issues
Social/Cultural environment - society's trends and fashions
Technological environment - new knowledge that makes
possible new ways of satisfying needs; the impact of
technology on the demand for existing products.