What is strategic analysis?:
Strategic analysis is a systematic process for studying the internal and external environment of an organization or project with the aim of determining its current position, anticipating opportunities and challenges, and making decisions that help achieve long-term goals.
In simpler terms: it is a tool for understanding where we are now? Where do we want to go? And how do we get there?
Elements of strategic analysis:
Internal environment: strengths and weaknesses (resources, capabilities, competencies, organizational structure).
External environment: opportunities and threats (competitors, market, regulations, technology, economic conditions).
Vision and mission: defining the overall direction of the organization.
Long-term goals: what the organization strives to achieve.
Strategies: general plans to achieve the goals.
Common tools of strategic analysis:
SWOT: strengths – weaknesses – opportunities – threats.
PESTEL: environmental analysis (political, economic, social, technological, environmental, legal).
Porter’s five forces analysis: to understand the intensity of competition in the market.
Its importance:
It helps management make informed decisions.
It reveals risks before they occur.
It clarifies competitive advantages.
It contributes to efficiently allocating resources.