Develop your data-driven strategic plan
What is Strategic Planning?
Businessdictionary.com defines Strategic Planning as, “A systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them. In contrast to long-term planning (which begins with the current status and lays down a path to meet estimated future needs), strategic planning begins with the desired-end and works backward to the current status. At every stage of long-range planning the planner asks, “What must be done here to reach the next (higher) stage?” At every stage of strategic-planning the planner asks, “What must be done at the previous (lower) stage to reach here?” Also, in contrast to tactical planning (which focuses at achieving narrowly defined interim objectives with predetermined means), strategic planning looks at the wider picture and is flexible in choice of its means.”
Why do I need Strategic Planning?
quickmba.com explains, “In today’s highly competitive business environment, budget-oriented planning or forecast-based planning methods are insufficient for a large corporation to survive and prosper. The firm must engage in strategic planning that clearly defines objectives and assesses both the internal and external situation to formulate strategy, implement the strategy, evaluate the progress, and make adjustments as necessary to stay on track.”
Why choose Competitive Analytics to help me strategically plan?
Competitive Analytics focuses on a comprehensive list of forces that affect an organization and therefore should be considered in the development and implementation of a strategic plan. Our strategic planning process reflects Michael Porter’s framework for Five Forces that influence an industry and should guide an organization’s strategic planning. Competitive Analytics takes into account:
Importance of volume to supplier
Differentiation of inputs
Impact of inputs on cost or differentiation
Switching costs of firms in the industry
Presence of substitute inputs
Threat of forward integration
Cost relative to total purchases in industry
Threat of New Entrants
Barriers to entry
Absolute cost advantages
Proprietary learning curve
Access to inputs
Economies of scale
Access to disctribution
Threat of Substitutes
Buyer inclination to substitute
Price-performance trade off of substitutes
Threat of backward integration
Buyer concentration vs. industry
Degree of Rivalry
Fixed costs/Value added
Diversity of rivals
When organizations strategically focus on these five forces in context to how they affect their industry, they are able to develop an advantage over competitors. Competitive Analytics assists organizations in making the best strategic decisions enabling maximized profits to be made.