Context analysis is a method of looking at the internal and external business environment as it relates to a specific company or department

Context analysis is a method of looking at the internal and external business environment as it relates to a specific company or department. While nearly every business uses these methods to some extent, the most common pursuers of context analysis are businesses that need to constantly fight to stay competitive. These businesses include companies that sell high-cost items, such as automobiles, or ones that face competition for store space, such as food and drink producers. One of the most common types of context analysis looks specifically at strengths, weaknesses, opportunities and threats (SWOT) facing a business in order to develop a strategic business plan.The processes involved in a context analysis look at all parts of the business and the market to find likely avenues of success or failure. The largest part of the analysis looks at the company’s competitors and both their place and the business’s place in the market. If the processes are limited to just this aspect, the analysis is commonly called environmental scanning. True context analysis then looks at the business and finds ways to improve its position or become more competitive.A context analysis can be as in-depth and complex as the company desires. There are so many things that the analysis could cover that a comprehensive study would never truly end. As a result, these methods have a tendency to fall into one of three groups that define the overall scope and end result of the process.