Strategic analysis

This free flexible, customizable online consultancy tool allows an evaluation of the strategic position of products and businesses:

It takes into account both environmental influences and intra-company-ascendancies. The evaluation factors are easily interchangeable and can be weighted individually. By moving the mouse over In a speech bubble like this you will find additional information. assessment tools will be displayed.

Instruction:

1. Please rate each factor with values between 0 (worst) to 100 (excellent). If you need help with the various evaluation factors, then move your mouse over the In a speech bubble like this you will find additional information.-icon.
2. By default, we have weighted the individual factors for you. However, you can alter each factor weighting on your own (0 --> irrelevant; 100 --> very relevant). The sum of the weighting factors for each subitem and for the main points has to be 100. If you don't want to use a factor just put the weighting to 0.
3. After you have entered all the required data and accepted the general terms and conditions, click on the button "Strategic calculation". If your input makes sense, you can see the results of this analysis. Changes to the input variables can be performed at any time.

Notes:

• Please consider the current and future situation of products and business areas.
• The division- / product-names A, B, C, D, E may be replaced with your own notations. Similarly, all factors can be renamed.
• You can compare and analyze less than 5 products / business areas or contrast your own products / businesses with competitors.
• For more information about the respective entries, please move your mouse over the In a speech bubble like this you will find additional information.-symbol.

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Input:

Product Business segment Business units are parts of a company which are capable of operating largely independently of each other in their respective markets. Performing a strategic analysis helps the management to identify best business areas and best, holistic, consistent strategies spanning all the business areas.						Weighting
Business EnvironmentExternal dimension to assess the attractiveness of the sector / business unit: - Usually only influenceable indirectly - Subdivisions are e.g. macro environment and industry environment: Parts of the industry environment are e.g. competitors, suppliers, customers. It's easier to affect them than the macro environment. The macro environment can be divided e.g. in economic, technological, political, legal, ecological, social environment.
For this kind of factors are only statements as better or worse possible. How much something is better or worse can not be described in absolute terms and is therefore always subjective (e.g. school grade 1/A is better than 2/B; Nevertheless it can not be described objectively how much better it is).Qualitative factors
Assessment of the current competitive situation: - How many competitors exist currently for this product / business - How do you evaluate competition in this branch (e.g. tough price competition, existence of excess capacities, ...) - Can a company set apart from competitors - How important is this industry sector for competitors
Assessment of the customers: - how many customers exist (the less exist, the stronger is their bargaining position) - what are the costs for a client when switching to a competing product (e.g. incompatibility) - Are customers bound by contracts (e.g. periods of notice) - How important are products for customers - Is there a risk that customers buy up companies in the industry (backward integration) --> 0 for a bad situation (i.e. a few customers that are not dependent on the products) --> 100 for a good situation (i.e. many customers with weak negotiating positions) ...
Risk of new firms entering the industry: - How much development effort is needed - Is a high capital requirement necessary - Does moving to a new provider create switching costs - Is an market entry subject to statutory requirements (state influence) -How easily can access to distribution channels be achieved (e.g. fees for placement of food on supermarket shelves) ...
Risk of the product being replaced by new technologies: - Are switching costs created (e.g. by incompatibilities, charges for porting telephone numbers of cell phones) - How is the price-performance ration compared to your own products - Exist customer preferences for a technology How quickly are new technologies developed (e.g. cassette --> CD --> DVD --> Memory Cards --> ...) ...
Evaluation of suppliers: - Are there many potential suppliers (the less, the stronger their bargaining position) - What does supplier switching cost - Is your company bound by contracts (e.g. notice periods) - How important is your company as a customer for current and potential suppliers - how high is the risk that suppliers buy up companies in the industry (forward integration) ... --> 0 for a bad situation (e.g. only a few suppliers, who don't need your company as a customer) --> 100 for a perfect situation (e.g. many suppliers with a weak bargaining position)
Assessment of state intervention: - Are there many regulations that are difficult to maintain - Can you expect support from the state in crisis situation - Do you have subsidies
If you still consider other factors as important, then you can enter them here
Here, you can describe with numbers, how much something is larger or smaller.Quantitative factors
Size of the market in monetary terms (the larger the potential market, the better the situation for the company).
Is the market volume growing strongly (--> favorable situation), remains it the same, or is it shrinking (--> bad situation)
How high is the industry profitability compared to other industries. The more risky the sector is, the higher it should be. Furthermore, it should be at least as high as the risk-free interest rate for long-term investments (Benchmarks can be found in our industry-specific balance sheet analysis).
If you still consider other factors as important, then you can enter them here
Weighted corporate strengthInternal dimension for assessing the strength of your product / business segment. It is determined by the resources and capabilities of the company.
Evaluation of the company's position in the market.Market position
How do you assess the current or future performance of your company?
How do you evaluate your profitability situation (benchmarks can be found in our industry-specific accounting analysis) 100 --> very good situation 0 --> very bad situation)
The absolute market share is the ratio of own market share to market size (i.e. an absolute market share of 100% --> monopolist). Use as a main criterion for market definition, whether a substitution of your products / technologies is possible.
If you still consider other factors as important, then you can enter them here
If you still consider other factors as important, then you can enter them here
Assessment of resources and capabilities of the company.Resource potential
How innovative is your company: - How often are you launching new products - How much money is spend on research and development
How is your cost position compared to others in the industry?
In the contemplation of distribution, you have to examine the physical distribution and the acquisitive distribution: - How much influence can you gain on subsequent stages in the value creation - How hard is it to bring the goods to the customer (are hazardous materials transported, must commodities be cooled, are some goods bulky, ...) - Is your distribution made directly or indirectly (--> the more intermediaries exist between your company and the actual end user, the worse the situation is assessed)
If you still consider other factors as important, then you can enter them here
If you still consider other factors as important, then you can enter them here
If you still consider other factors as important, then you can enter them here
If you still consider other factors as important, then you can enter them here
Turn-over Contribution margin Profit per product

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