COEPD – Center of Excellence for Professional Development Happy Learning
Strategic analysis the set of efforts made by an organization how to analyse, define and prepare its own strategy to execute future operations. The approach of strategy analysis generally includes both the internal and external environments, evaluation of identified data along with strategic analysis tools.
With the help of strategic analysis we will improve and optimize the market strategy. If the strategic plan is properly made we would get ultimate success in the business by achieving the overall objectives and goals of the organization.
Strategic analysis must be conducted among all the levels of the organization. Then only the organization will get the sufficient information in which area or segments they would like to put efforts to overcome the difficulties they have been facing.
After applying the strategic analysis the marketing team consisting of mangers and team members will find out the good number of probabilities in order to grab the new opportunities around them. The marketing wing of the organization is going to overcome the impediments that effects the growth of the organization.
Usually different organizations have their own goals and objectives. Strategic analysis helps these organizations to achieve their outputs by applying the plans defined at various levels of operations. Strategic planning is a long term investment of resources involving systematic and continuous planning. While organizations are conducting strategic analysis they must not only perform the Competitor analysis but also taking in to consideration of external factors. This will keep the organization on the top of the list among the successful organizations with profit maximization.
When organizations are performing Strategic analysis they must consider the following questions.
How the market looks like at the moment?
Who and how are the active clients in the market?
When Organizations are conducting strategic analysis they must know about the outside competitors and then make a perfect plan of defeating the competitors with confidence. One of the most important thing in the strategic analysis is to predict future events. Alternative strategic plans are also created if certain plan does not work out as expected.
Types of Strategic analysis:
There are two types of Strategic analysis used by most of the organizations for future planning. They are
- Internal strategic analysis External strategic analysis
Internal Strategic analysis: With the internal strategic analysis the organizations have deep insight in to their company by identifying both positive and negative points and provide proper resources that can be used to enhance the reputation of the organization in the market. The internal strategic analysis starts with the future potentiality and performance of the organization along with its capacity to grow.
The analysis of the strengths and weaknesses of the company are significantly depends on the market position and client response. If the company satisfy all the needs of the client then only the strengths make sense. The weaknesses and limitations of the organizations are predicted by the strategic analysts that a company face in the nearby future. If corrective measures are taken in timely manner the impact of weakness is reduced.
One of the widely used technique for the internal strategic analysis is the SWOT (Strength, Weakness, Opportunities and Threats) analysis. The companies should consider the SWOT analysis in order to handle the plan efficiently and perfectly.
SWOT analysis is strategic planning tool designed to evaluate the Strengths, Weaknesses, Opportunities and Threats associated with a project. This analysis helps the organizations to achieve the goals and objectives. Based on this analysis companies will concentrate in specific areas that yields desired results.
External Strategic analysis: After completing the internal analysis by the organization they will step in to the external factors that will interfere in their growth. External strategic analysis mainly deals about the customer satisfaction. Here the company should aim at what is the need of the present market and what the customer exactly wants. We can get the overall idea about how the market function. PESTLE (Political, Economic, Social, Technological, Legal and Environmental) analysis is one of the broadly used techniques in the external strategic analysis.
