The two major external analysis tools include PESTEL (political, economic, sociocultural, technological, environmental, and legal environments) and Industry analysis. Whereas PESTEL is collecting and analyzing informations about the macro-environment as a whole, industry analysis is collecting and analyzing information about the competitors and the competitive environment of the organization.

The two major internal analysis tools include the Value Chain and VRIO (Value, rare, inimitable, and organization. Whereas the value chain is used to identify the strengths and weaknesses of the parts of the organization, VRIO is used to figure out which of these strengths can render a stronger competitive advantage to the organization.

We learn in SWOT analysis about the organization’s strengths, weaknesses, opportunities, and threats in a given market and how it can take advantage of opportunities using its strengths to minimize its weaknesses and threats.

1. Concentric diversification is when the organization creates a product that is similar to existing ones and applicable to a new market.
2. Horizontal diversification is when the organization creates a product that is unrelated to existing ones but is applicable to the current/same market.
3. Conglomerate diversification is when the organization creates a product that is unrelated to existing ones and applicable to an entirely different market.

Corporate strategy emphasizes on what type of business or businesses to compete in while business strategy emphasizes on how to compete in a particular business.

Strategy formulation is the coordination of techniques chosen by the organization to achieve its mission and vision. Strategy implementation is the actions taken to achieve the organization's goals and objectives as evidenced in its mission and vision statement.