Learn how to do External Analysis of a company (with examples)

Conducting technological analysis is fairly straightforward in comparison to other factors in the list. You just have to know which technologies are in the market that will directly impact the sale or purchase of your product.

Not only sale or purchase, but also the manufacturing of the product. If your competitor is using advanced technology to produce same product than you, then it is likely that your competitor will produce the same product at lower cost than you.

Therefore, it is important that you know what technologies are in use from the raw material production and procurement to the sale of the product in the market.

Yes. You have to even look at the technologies that are in use to sell the products in the market.

Take social media for example. It is run on internet which is a very impressive technology in itself. If your competitor is making good sales through social media channels instead of offline sales, chances are that you have to choose the social media sales instead of going traditional.

While conducting technological analysis, only focus on the progresses that are related to your product. Along with this, focus on other form of technologies that is likely to disrupt the sale of your product by acting as a substitute.

Take for example landline telephones. It got replaced by cellular phones which later got replaced by smartphones.

The companies who may have entered into manufacture and sale of landline telephones when the world was adopting smartphones, may have encountered heavy loss.