ABSTRACT
External analysis is of crucial importance because the possibilities that emerge from the value chain analysis can also be tested. The external analysis can be divided into four steps: initial analysis, business environment analysis, market research and determination of market potential. In practice, a great deal of attention is paid to the external environmental analysis because the company will have to anticipate the demand and needs in the foreign market if it wishes to be successful in a certain market. The initial analysis determines whether it is necessary to continue the business environment analysis. The three components of the initial analysis — the basic demand analysis, the trade figures analysis and the business environment risk index. Economic environmental factors include all those factors that influence the income and purchasing power of the consumer. Political-legal environmental analysis includes all the political measures and legislation that affect the operation of a company abroad.
