Large Western European companies are an example of how a competent marketing company directly affects the success of expanding markets for manufactured goods and services, as well as the diversification of production, if necessary. Strategic analysis methods in such a company are constantly used, because thanks to them, the business entity can objectively assess the market for the assortment of goods under study and its saturation with specific products. In addition, it is possible to analyze the activities of competitors and find new market sectors in which you can introduce your products.
Strategic analysis is the main element of planning, acting as a strategic management tool , with it you can objectively evaluate the activities of the company and identify those areas in which it is most profitable to invest financial resources. Strategic analysis methods were formed in the early 70s, marking the beginning of a new era of doing business on the basis of searching and identifying the needs of the population, gradually abandoning the principles of global supply of goods and services. By that time, some market segments were overly saturated with goods and services, while others, on the contrary, were in acute shortage. In addition, the imprint of rapid progress and the introduction of computer technology was also imposed, which required the creation of new approaches to work, as well as the identification of new ways to promote services.
The strategic analysis of the enterprise includes several vectors, the main of which are the following:
1. The vector of growth, which determines the scope and level of activity of future production. The main component of this guide is the expansion of the market and the creation of a new range of products. Strategic analysis methods include a plan matrix, which consists of the following factors:
- market penetration (new products, low prices, stocks, absorption of competitors, and so on);
- search for new market segments ;
- the creation of new goods and services;
- diversification of production (the development of new types of goods, as well as the extension of household activities to new areas).
2. Competitive advantage - is the most important vector of strategic analysis, which includes analysis of existing and potential competitors, as well as identifying their advantages and disadvantages. In this regard, the company carries out a thorough analysis of the advantages that the company can use to achieve its goals and objectives. Strategic planning methods without fail include cost minimization, early entry into the market, as well as differentiation of goods and services. To accomplish this task, the marketing department of the enterprise develops a head strategy, writing it out in the form of a long-term plan, broken down by specific dates for the implementation of certain events.
It should be emphasized that it is unprofitable to rely solely on the development of new products, since the leadership of the inventor company is rapidly weakening, and competing companies are trying to immediately copy this product and produce its analogues, quickly saturating the population’s need for this.
3. Synergy or effect 2 + 2 = 5. Quite an interesting phenomenon that has been noticed by marketers for quite some time. Its essence lies in the fact that as a result of the joint use of labor resources, its income exceeds that indicator that each of them individually could achieve. In other words, as a result of the interaction of several factors of production, the overall result rises several times. However, one should take into account the fact that synergism can be not only positive, but also negative. An example is a situation where a company enters highly competitive manufacturing sectors without having sufficient experience in this area.
4. Flexibility in implementing the strategic plan, which is an important point in modern business conduct. Today, information technologies are so quickly introduced into the business sector that for the successful operation of any company, it is necessary to adjust its goals and objectives in time, placing the most important of them paramount.
In addition to the methods, it is also necessary to highlight the types of strategic analysis, which allows you to fully collect all the necessary information about goods, services, demand, supply, consumers, competitors, and so on.
So, the main types of strategic analysis include the following:
- STEP analysis (or PEST analysis). It is a search for information regarding the external environment, you can find out how it affects the final promotion of goods and services. Here, the social, economic, political and technological environment in the country where it is planned to introduce a new range of products is analyzed.
- Analysis of competitors.
- Analysis of organizational culture.
- Analysis of the current strategy.
- Business portfolio analysis.
In conclusion, I would like to emphasize once again that only a competent marketing strategy allows you to succeed in promoting goods and services in the economic market, since at present it is precisely the right approach that is the main factor for success, and strategic analysis methods play an important role here.