Situational analysis is the process of evaluation of trends which a company has faced and can face in a specific industry. Scope of situational analysis is usually defined by 3C's which include CUSTOMERS, COST & COMPETITION. Some market analysts also consider Collaboration, other companies and competitive advantage a part of situational analysis. Usually the companies conduct situational analysis when they plan to step-in a business or when they they want to diversify or expand their business.
