Strategic Environmental Analysis

Perform strategic environmental analysis using SWOT, PESTLE, and Porter's Five Forces frameworks. Creates structured assessments for competitive positioning and strategic planning.

What is Strategic Environmental Analysis?

Strategic environmental analysis examines internal and external factors that impact an organization's ability to achieve its objectives. Three complementary frameworks provide different perspectives:

Framework	Focus	Perspective	Best For
SWOT	Internal + External	Organization-centric	Quick strategic assessment
PESTLE	External macro-environment	Environment-centric	Market entry, regulatory planning
Porter's Five Forces	Industry dynamics	Competition-centric	Industry attractiveness, positioning

Framework 1: SWOT Analysis

What is SWOT?

SWOT analyzes four dimensions affecting strategic success:

Dimension	Type	Question	Focus
Strengths	Internal	What do we do well?	Leverage
Weaknesses	Internal	What do we do poorly?	Improve or mitigate
Opportunities	External	What trends favor us?	Pursue
Threats	External	What could harm us?	Defend against

SWOT Workflow

Step 1: Define Scope

## SWOT Scope Definition

**Subject:** [Organization / Product / Initiative]
**Purpose:** [Strategic decision to inform]
**Time Horizon:** [Current state / 1-year / 3-year]
**Analyst:** swot-analyst
**Date:** [ISO date]

Step 2: Identify Strengths

Internal capabilities that provide competitive advantage:

Category	Example Questions
Resources	Unique assets? Strong financials? Key partnerships?
Capabilities	Core competencies? Skilled workforce? Technology?
Market Position	Brand recognition? Customer loyalty? Market share?
Culture	Innovation culture? Agility? Employee engagement?

Step 3: Identify Weaknesses

Internal limitations that hinder performance:

Category	Example Questions
Resources	Funding gaps? Aging infrastructure? Missing skills?
Capabilities	Inefficient processes? Technical debt? Skill gaps?
Market Position	Weak brand? High churn? Limited reach?
Culture	Resistance to change? Silos? Leadership gaps?

Step 4: Identify Opportunities

External conditions that could benefit the organization:

Category	Example Questions
Market	Growing segments? Unmet needs? Geographic expansion?
Technology	Emerging tech? Automation potential? Digital channels?
Regulatory	Favorable regulation? Deregulation? Incentives?
Competitive	Competitor weaknesses? Market consolidation?

Step 5: Identify Threats

External conditions that could harm the organization:

Category	Example Questions
Market	Declining demand? Commoditization? Price pressure?
Technology	Disruption? Obsolescence? Cyber risks?
Regulatory	New compliance? Trade barriers? Legal risks?
Competitive	New entrants? Substitutes? Aggressive competitors?

Step 6: Strategic Implications

Cross-reference quadrants to identify strategic options:

Combination	Strategy Type	Approach
S-O	Offensive	Use strengths to capture opportunities
W-O	Developmental	Address weaknesses to pursue opportunities
S-T	Defensive	Use strengths to counter threats
W-T	Survival	Minimize weaknesses and avoid threats

SWOT Output Format

## SWOT Analysis: [Subject]

**Date:** [ISO date]
**Analyst:** swot-analyst
**Purpose:** [Strategic context]

### Strengths
| # | Strength | Impact | Evidence |
|---|----------|--------|----------|
| S1 | [Description] | High/Med/Low | [Supporting data] |

### Weaknesses
| # | Weakness | Impact | Evidence |
|---|----------|--------|----------|
| W1 | [Description] | High/Med/Low | [Supporting data] |

### Opportunities
| # | Opportunity | Impact | Timing |
|---|-------------|--------|--------|
| O1 | [Description] | High/Med/Low | Near/Mid/Long term |

### Threats
| # | Threat | Impact | Likelihood |
|---|--------|--------|------------|
| T1 | [Description] | High/Med/Low | High/Med/Low |

### Strategic Implications
| Strategy | S/W | O/T | Recommendation |
|----------|-----|-----|----------------|
| S-O: Offensive | S1, S2 | O1 | [Action] |
| W-O: Developmental | W1 | O2 | [Action] |
| S-T: Defensive | S3 | T1 | [Action] |
| W-T: Survival | W2 | T2 | [Action] |

SWOT Mermaid Diagram

quadrantChart
    title SWOT Analysis
    x-axis Internal --> External
    y-axis Negative --> Positive
    quadrant-1 Opportunities
    quadrant-2 Strengths
    quadrant-3 Weaknesses
    quadrant-4 Threats
    "Strong brand": [0.3, 0.8]
    "Skilled team": [0.2, 0.7]
    "Legacy systems": [0.3, 0.3]
    "Limited budget": [0.2, 0.2]
    "Growing market": [0.8, 0.85]
    "New technology": [0.7, 0.75]
    "New competitor": [0.8, 0.25]
    "Regulation change": [0.7, 0.15]

Framework 2: PESTLE Analysis

What is PESTLE?

PESTLE examines six macro-environmental factors:

Factor	Focus	Example Considerations
Political	Government, policy	Elections, trade policy, stability, taxation
Economic	Economy, markets	GDP, inflation, interest rates, unemployment
Social	Society, demographics	Population, culture, lifestyle, attitudes
Technological	Technology, innovation	R&D, automation, digital transformation
Legal	Laws, regulations	Employment law, consumer protection, IP
Environmental	Ecology, sustainability	Climate, resources, sustainability mandates

PESTLE Workflow

Step 1: Define Context

## PESTLE Context

**Subject:** [Organization / Market / Initiative]
**Geography:** [Region / Country / Global]
**Time Horizon:** [Current / 1-3 years / 3-5 years]
**Purpose:** [Market entry / Strategy / Risk assessment]

Step 2: Analyze Each Factor

For each PESTLE factor:

1. Identify relevant trends in that category
2. Assess impact on your organization (positive/negative)
3. Rate importance (High/Medium/Low)
4. Determine timing (immediate/near-term/long-term)
5. Identify strategic implications

Step 3: Rate and Prioritize

Impact Rating	Description
High	Fundamental to strategy, requires response
Medium	Moderate effect, should monitor
Low	Minimal impact, awareness only

PESTLE Output Format

## PESTLE Analysis: [Subject]

**Date:** [ISO date]
**Geography:** [Scope]
**Analyst:** pestle-analyst

### Political Factors
| Factor | Trend | Impact | Importance | Timing | Implication |
|--------|-------|--------|------------|--------|-------------|
| [Factor] | [↑/↓/→] | +/- | H/M/L | Now/Near/Long | [Action] |

### Economic Factors
| Factor | Trend | Impact | Importance | Timing | Implication |
|--------|-------|--------|------------|--------|-------------|

### Social Factors
| Factor | Trend | Impact | Importance | Timing | Implication |
|--------|-------|--------|------------|--------|-------------|

### Technological Factors
| Factor | Trend | Impact | Importance | Timing | Implication |
|--------|-------|--------|------------|--------|-------------|

### Legal Factors
| Factor | Trend | Impact | Importance | Timing | Implication |
|--------|-------|--------|------------|--------|-------------|

### Environmental Factors
| Factor | Trend | Impact | Importance | Timing | Implication |
|--------|-------|--------|------------|--------|-------------|

### Summary: Key Factors
| Priority | Factor | Category | Strategic Response |
|----------|--------|----------|-------------------|
| 1 | [Most impactful] | [P/E/S/T/L/E] | [Action] |
| 2 | [...] | [...] | [...] |

PESTLE Mermaid Diagram

mindmap
  root((PESTLE))
    Political
      Government stability
      Trade policy
      Taxation
    Economic
      GDP growth
      Inflation
      Exchange rates
    Social
      Demographics
      Consumer trends
      Education
    Technological
      Innovation rate
      Automation
      R&D investment
    Legal
      Employment law
      Consumer protection
      Data privacy
    Environmental
      Climate policy
      Sustainability
      Resource scarcity

Framework 3: Porter's Five Forces

What are the Five Forces?

Porter's Five Forces analyze industry structure and profitability:

Force	Question	High =
Competitive Rivalry	How intense is competition?	Lower profits
Threat of New Entrants	How easy to enter market?	More competition
Threat of Substitutes	Are alternatives available?	Price pressure
Bargaining Power of Suppliers	Can suppliers dictate terms?	Higher costs
Bargaining Power of Buyers	Can buyers dictate terms?	Lower prices

Five Forces Workflow

Step 1: Define Industry

## Five Forces Context

**Industry:** [Specific industry definition]
**Scope:** [Geographic / Segment focus]
**Purpose:** [Entry decision / Positioning / Strategy]
**Date:** [ISO date]

Step 2: Analyze Each Force

Competitive Rivalry:

Factor	Assessment
Number of competitors	Few / Many
Industry growth	High / Low
Product differentiation	High / Low
Exit barriers	High / Low
Fixed costs	High / Low

Threat of New Entrants:

Barrier	Height
Capital requirements	High / Low
Economies of scale	Strong / Weak
Brand loyalty	Strong / Weak
Regulatory barriers	High / Low
Access to distribution	Easy / Hard

Threat of Substitutes:

Factor	Assessment
Substitute availability	Many / Few
Switching costs	High / Low
Price-performance ratio	Better / Worse
Buyer propensity to switch	High / Low

Bargaining Power of Suppliers:

Factor	Assessment
Supplier concentration	High / Low
Differentiation of inputs	High / Low
Switching costs	High / Low
Forward integration threat	High / Low

Bargaining Power of Buyers:

Factor	Assessment
Buyer concentration	High / Low
Volume of purchases	Large / Small
Product differentiation	High / Low
Switching costs	High / Low
Price sensitivity	High / Low

Step 3: Rate Forces

Rating	Industry Attractiveness
1 (Very Strong Force)	Very Unattractive
2 (Strong Force)	Unattractive
3 (Moderate Force)	Neutral
4 (Weak Force)	Attractive
5 (Very Weak Force)	Very Attractive

Five Forces Output Format

## Porter's Five Forces: [Industry]

**Date:** [ISO date]
**Scope:** [Geography / Segment]
**Analyst:** five-forces-analyst

### Force Analysis

| Force | Rating (1-5) | Key Drivers | Strategic Implication |
|-------|--------------|-------------|----------------------|
| Competitive Rivalry | [1-5] | [Top factors] | [Response] |
| New Entrants | [1-5] | [Barriers] | [Response] |
| Substitutes | [1-5] | [Threats] | [Response] |
| Supplier Power | [1-5] | [Factors] | [Response] |
| Buyer Power | [1-5] | [Factors] | [Response] |

### Industry Attractiveness

**Overall Score:** [Sum/5 = Average]
**Assessment:** [Very Attractive / Attractive / Neutral / Unattractive / Very Unattractive]

### Strategic Recommendations

1. **[Priority 1]:** [Action to address strongest force]
2. **[Priority 2]:** [Action to build competitive advantage]
3. **[Priority 3]:** [Action to improve positioning]

Five Forces Mermaid Diagram

flowchart TD
    subgraph Industry
        CR[Competitive Rivalry<br/>Rating: X/5]
    end

    NE[Threat of<br/>New Entrants<br/>Rating: X/5] --> CR
    SUB[Threat of<br/>Substitutes<br/>Rating: X/5] --> CR
    SUP[Supplier<br/>Power<br/>Rating: X/5] --> CR
    BUY[Buyer<br/>Power<br/>Rating: X/5] --> CR

    style CR fill:#f9f,stroke:#333
    style NE fill:#bbf,stroke:#333
    style SUB fill:#bbf,stroke:#333
    style SUP fill:#bfb,stroke:#333
    style BUY fill:#bfb,stroke:#333

Combined Analysis

When to Use Each Framework

Scenario	SWOT	PESTLE	Five Forces
Quick strategic assessment	✅ Primary	Supporting	-
Market entry decision	Supporting	✅ Primary	✅ Primary
Competitive positioning	✅ Primary	Supporting	✅ Primary
Regulatory planning	Supporting	✅ Primary	-
Investment decision	✅ Primary	✅ Primary	✅ Primary
Annual strategic review	✅ Primary	✅ Primary	Supporting

Integrated Analysis Workflow

For comprehensive strategic analysis:

1. Start with PESTLE - Understand macro-environment
2. Apply Five Forces - Analyze industry dynamics
3. Conduct SWOT - Position organization within context
4. Synthesize - Create unified strategic recommendations

Structured Data (YAML)

strategic_analysis:
  version: "1.0"
  date: "2025-01-15"
  analyst: "strategic-analyst"
  subject: "Acme Corp Market Expansion"

  swot:
    strengths:
      - id: S1
        description: "Strong brand recognition"
        impact: high
        evidence: "Top 3 in brand awareness surveys"
    weaknesses:
      - id: W1
        description: "Limited digital presence"
        impact: medium
        evidence: "20% of sales from online"
    opportunities:
      - id: O1
        description: "Growing Asian market"
        impact: high
        timing: near_term
    threats:
      - id: T1
        description: "New market entrant"
        impact: high
        likelihood: high

  pestle:
    political:
      - factor: "Trade agreements"
        trend: positive
        impact: positive
        importance: high
    economic:
      - factor: "Interest rates"
        trend: increasing
        impact: negative
        importance: medium
    # ... other factors

  five_forces:
    competitive_rivalry:
      rating: 3
      key_drivers: ["Many competitors", "Low differentiation"]
    threat_new_entrants:
      rating: 4
      key_drivers: ["High capital requirements"]
    threat_substitutes:
      rating: 2
      key_drivers: ["Digital alternatives emerging"]
    supplier_power:
      rating: 4
      key_drivers: ["Many suppliers available"]
    buyer_power:
      rating: 2
      key_drivers: ["Large buyer concentration"]
    overall_attractiveness: 3.0

  synthesis:
    key_insight: "Market attractive but digital disruption imminent"
    priority_actions:
      - "Accelerate digital transformation (address W1, T1)"
      - "Expand Asian operations (leverage S1, capture O1)"
      - "Build strategic supplier partnerships (counter S-T)"

When to Use Strategic Analysis

Scenario	Recommended Approach
Annual planning	SWOT + PESTLE
New market entry	PESTLE + Five Forces
Competitive response	SWOT + Five Forces
M&A due diligence	All three frameworks
Product launch	SWOT (focused)
Risk assessment	PESTLE (focused)

Integration

Upstream

• stakeholder-analysis - Identify who provides input
• capability-mapping - Link strengths to capabilities
• Domain research - Gather market data

Downstream

• Requirements - Strategic requirements
• Business cases - Investment justification
• Roadmaps - Strategic initiatives

Related Skills

• capability-mapping - Internal capability assessment
• stakeholder-analysis - Stakeholder perspectives
• value-stream-mapping - Operational efficiency
• benchmarking - Competitive comparison
• risk-analysis - Risk identification and mitigation

User-Facing Interface

When invoked directly by the user, this skill operates as follows.

Arguments

• <subject>: Organization, product, market, or initiative to analyze
• --mode: Analysis framework (default: swot)
  • swot: SWOT analysis only (~4K tokens)
  • full: SWOT + PESTLE + Porter's Five Forces (~12K tokens)
  • pestle: Macro-environment analysis only (~4K tokens)
  • porter: Industry structure analysis only (~4K tokens)
• --output: Output format (default: both)
  • yaml: Structured YAML for downstream processing
  • mermaid: Mermaid diagram visualization
  • both: Both formats
• --dir: Output directory (default: docs/analysis/)

Execution Workflow

1. Parse Arguments - Extract subject, mode, and output format. If no subject provided, ask the user what to analyze.
2. Execute Based on Mode:
   • SWOT: Analyze Strengths, Weaknesses, Opportunities, Threats with strategic implications (S-O offensive, W-O developmental, S-T defensive, W-T survival).
   • Full: Spawn the strategic-analyst agent for comprehensive SWOT + PESTLE + Porter's Five Forces with cross-framework synthesis.
   • PESTLE: Analyze Political, Economic, Social, Technological, Legal, Environmental factors with impact and likelihood ratings.
   • Porter: Analyze Competitive Rivalry, Threat of New Entrants, Threat of Substitutes, Supplier Power, Buyer Power with overall industry attractiveness score.
3. Generate Output - Produce YAML structure, Mermaid diagrams (quadrantChart for SWOT, mindmap for PESTLE, flowchart for Five Forces), and summary report.
4. Save Results - Save to docs/analysis/swot-analysis.yaml and/or docs/analysis/swot-analysis.md (or custom --dir).
5. Suggest Follow-Ups - Recommend capability-mapping for gap identification, risk analysis for threat elaboration, and decision-analysis for strategic option evaluation.

Version History

• v1.0.0 (2025-12-26): Initial release