TOOLS &TECHNIQUES OF STRATEGIC ANALYSIS

1. Tools & Techniques of strategic Analysis
Strategic analysis is a process that involves
researching an organization's business environment
within which it operates. It is essential to formulate
strategic planning for decision making and smooth
working of that organization.
It is a dynamic area of strategic management where
new tools and techniques are continuously developed
by replacing some older techniques.

2. A corporate portfolio analysis can be defines as
a set of techniques that help strategist in taking
strategic decisions with regard to individual
products or businesses in a firm’s portfolio.
Each segment of a company's product line is
evaluated including sales, market share, cost of
production and potential market strength.
Corporate portfolio analysis

3. SWOT is an acronym for Strengths, Weaknesses,
Opportunities and Threats.
It is the most renowned tool for audit and analysis
of the overall strategic position of the business and
its environment. Its key purpose is to identify the
strategies that will create a firm specific business
model that will best align an organization’s
resources and capabilities to the requirements of the
environment in which the firm operates.
SWOT Analysis

4. An overview of the four factors (Strengths,
Weaknesses, Opportunities and Threats) :
Strengths - Strengths are the qualities that enable us
to accomplish the organization’s mission. Strengths
can be either tangible or intangible.
Weaknesses - Weaknesses are the qualities that
prevent from accomplishing mission and achieving
full potential. These weaknesses deteriorate
influences on the organizational success and growth.

5. Opportunities - Opportunities are presented by the
environment within which organization operates.
These arise when an organization can take benefit
of conditions in its environment to plan and execute
strategies that enable it to become more profitable.
Threats - Threats arise when conditions in external
environment jeopardize the reliability and
profitability of the organization’s business.

6. Experience Curve Analysis
The concept of experience curve is akin to a learning
curve which explains the efficiency increase gained
by workers through repetitive productive work.
Experience curve results from a variety of factors
such as learning effects , economies of scale, product
redesign and technological improvements in
production.
The concept of experience curve is relevant for a
number of area in strategic management.

7. Life Cycle Analysis
Life cycle is a conceptual model that suggests that
products, markets, businesses and industries
evolve through sequential stages of introduction ,
growth, maturity and decline.
The main advantage of life cycle concept is that it
can be used to diagnose a portfolio of products(for
markets , businesses or industries) in order to
establish the stage at which each of them exists.

8. Industry Analysis
An industry analysis is significant business function which is
performed by business proprietors and other management experts
to evaluate the present business environment.
Industry analysis reviews the economic, political and market
factors that influence the way the industry develops. Major factors
can include the power manipulated by suppliers and buyers, the
condition of competitors, and the possibility of new market
entrants.
An industry analysis consists of three major elements:
1. The underlying forces at work in the industry
2. The overall attractiveness of the industry
3. The critical factors that determine a company's success within
the industry.

9. Porter's five forces analysis
Porter's model demonstrations that rivalry among firms in
industry depends upon five forces:
•The potential for new competitors to enter the market;
•The bargaining power of buyers and suppliers;
•The availability of substitute goods;
•and the competitors and nature of competition.
Main purpose of Five Forces is to determine the
attractiveness of an industry. However, the analysis also
provides basis for articulating strategy and understanding
the competitive scene in which a company operates.