Final answer:
Borders Group, Inc., a bookstore chain, failed to accurately assess the threats posed by competitors and changing consumer behavior, leading to their downfall. The most critical element in their failure was the Porter's Five Forces analysis, which evaluates competitive forces in the industry.
Step-by-step explanation:
One example of a brand/company that went out of business due to failure in accurately using information gathered during a situational analysis is Borders Group, Inc. Borders failed to adapt to the changing market landscape driven by the rise of e-commerce. They underestimated the impact of online retailers like Amazon and failed to develop a strong online presence of their own. This failure to accurately assess the threats posed by competitors and changing consumer behavior was critical to their downfall. From the situational analysis perspective, the element that was most critical to their failure was the Porter's Five Forces analysis. Porter's Five Forces framework evaluates the competitive forces in the industry, including threat of new entrants, bargaining power of buyers and suppliers, threat of substitute products, and intensity of competitive rivalry. Borders failed to adequately assess these forces, particularly the impact of online retailers, which ultimately led to their demise.