INTRODUCTION

Strategic Analysis

Strategic Analysis
It is the investigation of the objective factors being considered in the process of strategic choice .Questions such as which industries to enter and which industries to leave , which businesses to create/acquire , which product and market to retain / grow /divest face the strategists of organizations during strategic analysis. Strategic analysis is meant to answer these questions below.

Types of strategic Analysis

1. Corporate Level strategic analysis

2. Business

level Strategic Analysis

Corporate level Strategic Analysis

1. This analysis focuses on techniques for analyzing businesses under the corporate umbrella .
2. Corporate level strategic analysis treats a corporate entity as constituting a portfolio of businesses under a corporate umbrella. The analysis focuses on the question of what a corporate entity should do regarding the several businesses in its portfolio.

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It is relevant to the case of a diversified corporation having several businesses .

Business level Strategic Analysis

1. This analysis focuses on individual businesses under the corporate umbrella from the perspective of the industry to which each of those businesses belong and on the unique competitive situations they face in their respective industries. For companies that are single business entities , a business level strategic analysis is sufficient.
2. The central theme in business level strategic analysis is competition .

3.The arena for analysis is there fore, the markets and industries where the organization compete 4.The analysis here focuses on the question of what means should the organization adopt with regard to the business that it does . These means are the Strategic alternative of cost leader ship , differentiation and focus

Major Corporate-level & Business level Strategic Analysis Techniques.

1.Corporate Portfolio Analysis It is a set of techniques that help strategists in taking strategic decision with regard to individual products or businesses in a firms portfolio . It is primarily use for competitive analysis and strategic planning in multi product and multi business firms .

2. SWOT Analysis

Every organization is a part of an industry Apart from the external forces that are present in the industry and in the competitors analysis it is use full to look inward and perform a SWOT analysis . It is brought together at this stage to explore the feasible strategic alternatives.

3. Experience curve analysis Experience curve analysis is used to explain the phenomena of how certain types of business strategies could benefit from its applications ,manly in the area of cost reduction . It results from a variety of factors such as learning effects , economies of scale , product redesign and technological improvements in production.

4. Life cycle analysis

Life cycle analysis is meant to consider the businesses at the various stages of growth and tailor strategies accordingly. Life cycle is a conceptual model that suggests that products, markets ,businesses and industries involve through sequential stages of introduction ,growth , maturity and decline the main advantage of this concept is that it can be used to diagnose a portfolio of products ..

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(or markets , businesses or industries ) in order to establish the stage at which each of them exists.

5. Industry analysis The industry analysis is based on the Porters five forces model consisting of five competitive forces threats of new entrants ,rivalry among competitors ,bargaining power of suppliers ,bargaining power of buyers and threat of substitute products that determine the intensity of industry competition and profitability.

6. Strategic Group analysis Strategic groups are clusters of competitors that share similar strategies and there fore, compete more directly with one another then with other firms in the same industry. Strategic group analysis serve the purpose of identifying the strategic groups and then analyzing the industry from the view point of the differences in the business strategic employed.

7. Competitor Analysis Competitor analysis focuses on each company with which a firm competes directly . Competitor analysis deals with the actions and reactions of individual firms within an industry or strategic group . It is important for oligopolistic industries where there are a few powerful competitors and each needs to keep track of the strategic moves of the others.

8. Contingencies strategies
Contingencies Strategies are formulated to take into account unforeseen events occurring during the strategy implementation ,owing to which ,mid course corrections might have to be made .

Strategic Plan

A strategic plan is a document which provides information regarding the different elements of strategic management and the manner in which an organization and its strategist propose to put the strategies into action.

Thank You
By Tousef Ali 10-MBA17