In strategic management, situation analysis (or situational analysis) refers to a collection of methods that managers use to analyze an organization's internal and external environment to understand the organization's capabilities, customers, and business environment.
The purpose of the situation analysis is to indicate to a company about the organizational and product position, as well as the overall survival of the business, within the environment.
[5] The 5C analysis is considered the most useful and common way to analyze the market environment, because of the extensive information it provides.
Porter's model is not just for businesses, but can also be applied to a country to help gain insight into creating a competitive advantage in the global market.
[13] The ultimate purpose of Porter's five forces model is to help businesses compare and analyze their profitability and position with the industry against indirect and direct competition.