Strategic Analysis Process

BUSINESS STRATEGY

8/18/20241 min read

Strategic Analysis ProcessStrategic Analysis Process

The strategic analysis process is crucial for any business aiming to achieve long-term success. It involves a thorough examination of the internal and external factors impacting a company's performance and growth. The process typically includes:

  1. Defining Objectives: Clearly identify what the business aims to achieve.

  2. Environmental Scanning: Analyze the external environment using tools like PESTLE (Political, Economic, Social, Technological, Legal, Environmental) to identify opportunities and threats.

  3. Internal Analysis: Assess internal strengths and weaknesses using frameworks like SWOT (Strengths, Weaknesses, Opportunities, Threats) and value chain analysis.

  4. Competitor Analysis: Understand the market position of competitors and identify their strategies.

  5. Formulating Strategies: Develop strategies based on the insights gathered, focusing on leveraging strengths, addressing weaknesses, and seizing opportunities.

  6. Implementation and Monitoring: Execute the strategies and continuously monitor performance to make necessary adjustments.

This systematic approach ensures that businesses remain agile and responsive to market changes while staying aligned with their goals.