Escolar Documentos
Profissional Documentos
Cultura Documentos
Senior Lecturer
Dania University College
INTERNAL ANALYSIS
Three ingredients are critical to the success of a strategy:
First, the strategy must be consistent with conditions in the competitive
environment. Specifically it must take advantage of existing or projected
opportunities and minimize the impact of major threats.
Second, the strategy must place realistic requirements on the firms' internal
capabilities. In other words, the firms pursuit of market opportunities must
be based not only on the existence of such opportunities but also on the
firms key internal strengths.
Finally, the strategy must be carefully executed.
Techniques of Internal Analysis
Managers have historically relied on two approaches to structure their analysis of
internal capabilities so that they introduce greater objectivity into their firms
strategic decision-making process:
Value Chain Analysis
SOWT Analysis
Value Chain Analysis
Value chain analysis is based on the assumption that a businesss basic
purpose is to create value for users of its products or services.
In value chain analysis, mangers divide the activities of their firm into sets of
separate activities that add value.
Each of these activities can add value and each can be a source of
competitive advantage.
By identifying and examining these activities, mangers often acquire an indepth understanding of their firms capabilities, its cost structure, and how
these create competitive advantage or disadvantage.
Value chain analysis divides a firms activities into two major categories,
primary activities and support activities.
Primary activities are those involved in the physical creation of the product,
marketing and transfer to the buyer, and after-sales support.