Company situation analysis

Company situation analysis
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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:

Company situation analysis techniques

To comprehensive analyse the firm's position, there are several commonly used techniques (fig. 1.):

Fig. 1. Situation analysis levels

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:

Conclusions from the portfolio analysis are the basis for the formulation of objectives, operational strategies and marketing plans.

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

Its role is primarily a description and evaluation, from a strategic point of view, of the main resources of the company. The analysis covers the entire cross section of resource companies:

  • 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.).


Author: Małgorzata Latała, Krzysztof Wozniak