Critically Evaluate Two Approches Used During the Strategic Analysis Process
1. Introduction
It is known that nowadays it is not enough to have an idea and money to start a business to run. Even harder is to develop already existing project. Currently, as practically in every industry there is a huge competition, so must be carry out a market analysis before proceeding to any movement. The analysis must be conducted in a fair manner and give to meaningful results that will take the right decision for the future. Many schools give a lot of methods of market analysis. In addition to the well-known SWAT and PEST analysis, there are many other approaches such as Value Chain Analysis, Porters Five forces, Core Competencies and Stakeholder Mapping that may be useful.
This work will present two approaches of strategic analysis process such as Value Chain Management and Potters Five Forces. Those two methods seem to be the most authoritative and covering the largest range methods. The information and conclusions drawn from them give a clear view of the situation in which the company is located and whether the plans for the future have any chance of entry into force and to bring relevant results.
The first section presents the method of analysis of the value chain, its advantages and disadvantages, and presented examples of its application in practice, as typified by several companies. In the next part in a similar manner presented the advantages and disadvantages of the Potters five forces, also supported by examples of application. Finally, a brief summary is presented.
2. Value Chain Analysis
Value Chain Analysis is one of the methods of analysis of the strategic potential of the company, which is a "resource approach", which sources of success the company is looking for in the company. Value chain on the one hand refers to the economic path and then to organizational theory and analysis of the internal value chain of the company. The internal value chain, in turn, consists of basic and auxiliary functions.
The concept of the
It is known that nowadays it is not enough to have an idea and money to start a business to run. Even harder is to develop already existing project. Currently, as practically in every industry there is a huge competition, so must be carry out a market analysis before proceeding to any movement. The analysis must be conducted in a fair manner and give to meaningful results that will take the right decision for the future. Many schools give a lot of methods of market analysis. In addition to the well-known SWAT and PEST analysis, there are many other approaches such as Value Chain Analysis, Porters Five forces, Core Competencies and Stakeholder Mapping that may be useful.
This work will present two approaches of strategic analysis process such as Value Chain Management and Potters Five Forces. Those two methods seem to be the most authoritative and covering the largest range methods. The information and conclusions drawn from them give a clear view of the situation in which the company is located and whether the plans for the future have any chance of entry into force and to bring relevant results.
The first section presents the method of analysis of the value chain, its advantages and disadvantages, and presented examples of its application in practice, as typified by several companies. In the next part in a similar manner presented the advantages and disadvantages of the Potters five forces, also supported by examples of application. Finally, a brief summary is presented.
2. Value Chain Analysis
Value Chain Analysis is one of the methods of analysis of the strategic potential of the company, which is a "resource approach", which sources of success the company is looking for in the company. Value chain on the one hand refers to the economic path and then to organizational theory and analysis of the internal value chain of the company. The internal value chain, in turn, consists of basic and auxiliary functions.
The concept of the
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