5C Analysis

(noun)

the 5c analysis has allowed businesses to gain more information on the internal, macro-environmental and micro-environmental factors within the environment. The 5C analysis is considered to be the most useful and common method in analyzing the market environment due to the extensive information it provides to a business.

Related Terms

Examples of 5C Analysis in the following topics:

  • Conducting a Situational Analysis

    • The situation analysis consists of several methods of analysis: The 5Cs, SWOT and Porter's five forces analyses.
    • A situation analysis is often referred to as a "3C analysis", but when extended to a 5C analysis it allows businesses to gain more information about the internal, macro and micro-environmental factors within the environment.
    • The 5C analysis is considered the most useful, comprehensive and common way to analyze the market environment.
    • An analysis on the climate is also known as the PEST analysis.
    • A SWOT analysis can be a useful tool in conducting a situational analysis.

  • Qualitative and Quantitative Analysis

  • Analyzing Data

    • In statistical applications, some people divide data analysis into descriptive statistics, exploratory data analysis (EDA), and confirmatory data analysis (CDA).
    • All are varieties of data analysis.
    • Types of data analysis outputs: heat map, bar plots, scatter plots.
    • Researchers can set up a debriefing meeting to review the analysis.
    • Summarize the characteristics of data preparation and methodology of data analysis

  • Business Analysis

    • The first step in the business analysis process is to examine the projected demand for the product.
    • A complete cost appraisal is also necessary as part of the business analysis.
    • Based on these costs, the business analysis stage will estimate the likely selling price.
    • Financial ratio analysis allows an observer to put the data provided by a company in context.
    • Demonstrate knowledge of the components included in the business analysis stage of product development

  • Scanning and Analysis

    • One approach is the PEST analysis.
    • Of the four categories explored in the PEST analysis, the company has the least control over economic factors.
    • Two more factors, the environmental and legal factor, are defined within the PESTEL analysis (or PESTLE analysis).
    • The segmentation of the macro environment according to the six presented factors of the PESTEL analysis is the starting point of the global environmental analysis.
    • The six environmental factors of the PESTEL analysis are the following:

  • Marginal Analysis

    • Pricing decisions tend to heavily involve analysis regarding marginal contributions to revenues and costs.
    • Pricing decisions tend to heavily involve analysis regarding marginal contributions to revenues and costs.
    • In the marginal analysis of pricing decisions, if marginal revenue is greater than marginal cost at some level of output, marginal profit is positive and thus a greater quantity should be produced.
    • This series of cost curves shows the implementation of profit maximization using marginal analysis.
    • Identify the characteristics of a marginal price analysis relative to pricing decision making

  • Break-Even Analysis

    • In the linear Cost-Volume-Profit Analysis model, the break-even point - in terms of Unit Sales (X) - can be directly computed in terms of Total Revenue (TR) and Total Costs (TC) as: where TFC is Total Fixed Costs, P is Unit Sale Price, and V is Unit Variable Cost.
    • In terms of pricing decisions, break-even analysis can give a company a benchmark quantity of goods to be sold.
    • Some limitations of break-even analysis include:
    • It is only a supply side (i.e. costs only) analysis, as it tells you nothing about what sales are actually likely to be for the product at these various prices.

  • Plan the Research Design

    • This process is guided by discussions with management and industry experts , case studies and simulations, analysis of secondary data, qualitative research, and pragmatic considerations.
    • Secondary data analysis is one of the steps involved in formulating a Research Design

  • Competitive Intelligence

    • Competitive Intelligence (CI) is a hybrid process of marketing research and strategic analysis that can give companies a competitive advantage.
    • Although the term CI is also considered synonymous with competitor analysis, competitive intelligence extends beyond analyzing competitors.
    • In essence, CI is a hybrid process of marketing research and strategic analysis that ultimately seeks to provide companies and their products with a competitive advantage in the marketplace.

  • Competition

    • Companies must conduct competitive analysis to identify their competition accurately, and must avoid defining the competition too narrowly.
    • Competitive analysis focuses on opportunities and threats that may occur because of actual or potential competitive changes in strategy.
    • Competitive analysis starts with identifying current and potential competitors.
    • It is essential that the marketer begin the analysis by answering the following question: "What criteria can be used to identify a relevant set of competitors?