It is crucial for an organization to constantly study its external and internal environment. This enables the organization to adapt itself proactively to any change and enhances its success chances. It also helps the organization to gain competitive advantage in the market. Market environment analysis discusses three different analytical tools used by an organization to assess its environment. They are the Strength, Weaknesses, Opportunities and Threats (S/W/O/T) analysis, the P/E/S/T analysis, and Porter’s Five Forces analysis.  　 S/W/O/T 　 Internal - strength; Internal - weakness; External - opportunity; External - threats. P/E/S/T 　 1) Political factors: monopolies legislation; environmental protection laws; taxation policies; employment laws; Government policies; Legislation; and others. 　 2) Economical factors: Inflation; Employment; Disposable income; Business cycle; Energy availability and cost; others. 　 3) Social-cultural factors: Demographics; Distribution of income; Social mobility; Lifestyle changes; Consumerism; Levels of education; and others. 　 4) Technological factors: New discoveries and innovations; speed of technology transfer; rates of obsolescence; internet; information technology; and others. Porter's Five Forces Analysis 　    The Porter’s 5 Forces tool is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helps you understand both the strength of your current competitive position, and the strength of a position you’re looking to move into.    Five Forces Analysis assumes that there are five important forces that determine competitive power in a situation. These are: Supplier Power; Buyer Power; Competitive Rivalry; Threat of Substitution; Threat of New Entry.