Like any other investment, strategic analysis costs your business time and money. However, neglecting it can be even more costly.
Given this situation, this analysis must be seen as a fundamental element of the company, since it is a vital factor for success, as much as investing in Digital Marketing and Content Marketing today.
This is the only possible way to have accurate knowledge of the positive and negative attributes of the company’s internal environment. Having this type of data is essential to effectively understand what is working and replicate success in other areas of the business.
Furthermore, by encompassing external factors and resources, strategic analysis is essential for generating competitive advantages . In this way, you are always one step ahead of your competitors.
Finally, investment allows you to identify flaws in the operation. In other words, it is a way to uncover activities that are causing more harm than good. It is fair to say that, at the end of the day, investing in strategic analysis can be a lucrative activity.
What types of analysis exist?
Throughout the text we mention that there are uk telegram data different approaches to carrying out strategic analysis.
Even if your objective and modus operandi are similar, each one has different characteristics and may be appropriate for one situation or another. To make it easier to understand, we are going to explain 5 types.
SWOT Analysis or SWOT Matrix
Also known as “scoping analysis”, it was mistakes in identifying customer needs in sales developed by Stanford University in the 1970s. Its name is an acronym for the 4 elements that form the basis of SWOT:
- Strengths ;
- Or opportunities (opportunities);
- Weaknesses ;
- To threats;
Knowing the meaning of each letter, we can now understand how this strategy works, right?
This analyzes the positive and negative points of a business’s operation, both in the internal and external environment, separating them as follows:
- strengths : internal and external;
- opportunities : external and positive;
- weaknesses : internal and negative;
- threats : external and negative.
The SWOT analysis is simple to execute, making it an excellent choice for small businesses or those with less investment power, but it is also used by large corporations.
With it, management can anticipate and prepare for events that may affect the company’s future, something essential in times of digital transformation , in addition to correcting errors committed internally.
PESTEL analysis
PESTEL analysis , or PEST, is most commonly bf leads used to monitor a company’s macro environment, meaning it is entirely focused on its external factors. Like the SWOT analysis, its name is composed of the initials of the factors used to evaluate a business’s market:
- Political (politics);
- E conomic (economy);
- Social ;
- T echnological (technological);
- Environmental (environmental);
- Legal .
Political factors give attention to the actions and characteristics of the government that can influence the market, such as its stability, its interest policy, laws and regulations.
Economic factors are related to economic growth, inflation, purchasing power of the consumer public, etc.
Social elements are extremely important for marketing . They analyze consumer behavior and demographic information. As a result, they influence the way the brand understands and relates to the public.
As you may have already understood, technological factors refer to the new technologies available and how they can affect the market .
The last two points, environmental and legal, were recently added to the analysis.
The first became essential from the moment that sustainability issues became so important for the business world .
Finally, legal factors aim to keep the company abreast of all laws and regulations that may affect its operations.
Porter’s 5 forces
Michael Eugene Porter is the renowned American academic who created one of the most widely used strategic analysis theories in the world: Porter’s 5 Forces. This tool aims to identify the main competitive influence in a market.
The theory is based on the principle that, by knowing the power of the 5 forces, you can develop strategies to make your business more competitive. They are:
- rivalry between competitors;
- bargaining power of suppliers;
- bargaining power of customers ;
- threat of new competitors;
- threat of new products and services.
According to Porter, the analysis of these 5 forces can determine the position of any company in the market in which it operates.
The selection of these elements, specifically, is based on the idea that these forces never change, unlike more volatile factors such as technological changes or growth rates.
SOAR
Another name with an acronym. The free translation of the words that make up the name of this analysis would be forces, opportunities, aspirations and results.
SOAR is a type of analysis that is especially interesting if your organization already has a defined strategic plan , but you want to concentrate efforts in a specific area.
The approach may be similar to SWOT, but there is a fundamental difference: SOAR does not pay attention to weaknesses and prefers to focus on building strengths.
Therefore, this type of model is widely used to redirect efforts and resources to areas that are considered strong points, in order to strengthen them and make them more efficient.
Ansoff matrix
The Ansoff matrix , created in the 1950s by Igor Ansoff, aims to analyze market characteristics and develop strategies to increase sales volume, either by creating new products or exploring new markets .
To this end, the matrix presents 4 different approaches:
- market penetration : focusing on increasing sales of existing products in an existing market;
- product development : seeks to introduce new products into an existing market;
- market development – focuses on entering a new market using existing products;
- diversification : seeks to enter new markets by developing new products.
Therefore, the Ansoff matrix carries out an analysis of its products and the market in which the company operates.
From there, it is possible to define the best action plan to increase the profit generated by sales.
Will it be about creating new products or using existing ones after evaluating their life cycle ? Finding a space in the current context or looking for new market niches ?
The answers to these questions can have enormous value and potential in making your business successful.
Conducting strategic analysis on a regular basis is essential for a business to prosper. It is the only way to verify that it works and what needs to be adjusted.
In this way, the business will avoid damage, concentrate its efforts on areas that are most lacking, and will have the opportunity to compete on equal terms with other companies in the market.
So, did you understand what strategic analysis is and what are the most important types?
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