Category Archives: Business
Various frameworks exist to analyze the competitive environment of business ventures or projects and are useful in assessing their stated objectives and identifying the internal and external factors that are favorable and unfavorable to achieve those objectives.
- SWOT analysis
- Competitive force analysis
- Resource-based view (RBV) analysis
- STEEPLED macro-environmental factors analysis
These are important tools for assessing compatibility and attainability of the stated objective with the competitive reality. With the implementation of the right competitive strategies, a company can sustain its positive growth and high rates of return-- the two most important value drivers. A company can either position itself to deflect the effect of the competitive forces in the industry (defensive strategy)-- through investing in technology that will lower production costs or through increased advertising and creating a strong brand; or it will use its strengths to affect the competitive forces in the industry (offensive strategy).… Read the rest