This note provides an introduction of strategy tools for the analysis of the business environment. The note covers tools for analysis of the macro-environement (PESTEL analysis, scenario development), analysis of industry attractiveness (market size and growth drivers, industry life cycle, industry value chain, five forces), and analysis of customer segments and specific competitors.

The case describes the situation in the desktop printer industry in August 2002. Rumours suggest that Dell is planning to enter the industry. The case describes the structure of the industry, the main players, and the events leading to these rumours. Some possibles motives for Dell entering the printer industry are discussed, as well as the entry barriers.