Company situation analysis
|Company situation analysis|
|Methods and techniques|
Company situation analysis is a process which aims to disclose all opportunities (capacity) and the risks inherent in the environment and assess the competitiveness of company's resources and existing market position. The analysis is thus reduced to two issues:
- analysis of the market environment (competitive environment, development trends),
- analysis of business marketing resources (staff, market share, the attractiveness of the offer, the price position of the company, distribution systems, promotional activities)
Company situation analysis techniques
To comprehensive analyse the firm's position, there are several commonly used techniques (fig. 1.):
- SWOT analysis company's strengths, weaknesses, opportunities and threats,
- TOWS analysis,
- ASTRA analysis,
- Strategic portfolio analysis,
- Porter's Five forces analysis
- Analysis of the product life cycle,
- PEST analysis and variants: STEEP analysis; STEEPLE analysis,
Strategic portfolio analysis
It is another of the analysis of strategic situation of the company. Its aim is assessment of current and expected market position and on that basis to formulate the development strategy of the company. The most popular version of the portfolio analysis is BCG Matrix.
Portfolio analysis uses such indicators as:
- market dynamics,
- size of the market,
- capacity of the Market,
- market share.
Apart from the BCG matrix, other portfolio analysis methods include:
Product Life Cycle Analysis
It is an analysis of the structure of demand in terms of product life phases of the market. The situation of the company is often judged on the basis of quantities of products that are currently in the launch phase, phase to generate the greatest benefits and at the stage of aging. Analysis of the product life cycle impact assessment of the sales and allows for a coordinated policy to ensure steady business for a long period of time. The disadvantage of this analysis is assessing of the situation of the company in isolation from the results of the competition.
Company resources analysis
- financial resources (profitability, creditworthiness, etc.),
- physical resources (materials, buildings, equipment service stations, etc.),
- human resources (crew, engineers, managers, etc.),
- organizational resources (information systems, existing structures, etc.),
- technological resources (standard, quality, brand, know-how, etc.).
- Bamberger, I. (1981). Strategic Management in Small and Medium Sized Firms by Portfolio Analysis?: A Theoretical and Empirical Study. Universit e de Rennes 1, Institut de Gestion de Rennes.
- Fleisher, C. S., & Bensoussan, B. E. (2003). Strategic and competitive analysis: methods and techniques for analyzing business competition (p. 457). Upper Saddle River, NJ: Prentice Hall.
- Prescott, J. E., & Grant, J. H. (1988). A manager's guide for evaluating competitive analysis techniques. Interfaces, 18(3), 10-22.
- Talley, E. (1998). Turning servile opportunities to gold: A strategic analysis of the corporate opportunities doctrine. The Yale Law Journal, 108(2), 277-375.
- Weihrich, H. (1982). The TOWS matrix—a tool for situational analysis. Long range planning, 15(2), 54-66.
Author: Małgorzata Latała, Krzysztof Wozniak