Lecture 2. Situational analysis of the enterprise

position;
2.3 Analysis of market segments;
2.4 Analysis of competition;
2.5 Positional analysis.

the enterprise is located, i.e. the place it occupies in

the general business space, the main factors affecting the functioning of the enterprise, as well as its aggregated characteristics in general.
Situation analysis is a comprehensive analysis of capturing all relevant information and factors (internal and external) that affect the current and future situation of the organization.

resources, products, the prosperity, the market situation and possible future

development directions.
Therefore it helps significantly during strategic decision processes.
The result of situational analysis as a basis for creating strategies, plans or proposals of possible scenarios for the future conduct of the company.

company;
analysis of market segments;
analysis of competition;
positional analysis.

strategic economic zones, their interrelationships, surroundings and other important characteristics.

strategic

analysis,
analysis of the strategic portfolio,
analysis of the strategic set

the company's environment for which it has an outlet or

plans to get such an outlet.
The location of resources for different Strategic Economic Zones, the relationship of Strategic Economic Zones between themselves and the external environment determine the strategic position of the company.

following order. The strategic zone is determined by the needs

of the market, technology, customer type and geographic area.
The defining indicators of the development of Strategic Economic Zones are:
phase of development (phase of the life cycle);
market size;
purchasing power (solvent demand);
existing barriers to entry;
habits of customers;
the composition of competitors;
type and intensity of competition;
the main distribution channels;
state regulation;
Indicators of external environment development (economic, social, political, technological)

is carried out through the following means:

matrix BCG;
matrix AD Little;
Shell

matrix;
business screen McKinsey / GE;
matrix Ansoff and Porter.

positive cash flows, but at the same time, there are

large investment needs.

this category more require investment, rather than generate cash

These strategic zones produce more money than they consume

is to make a list of those goods, units or

companies that will be analyzed using the BCG matrix.
2. Defining the market is one of the most important things to do in this analysis
3. Calculate relative market share. Relative market share can be calculated in terms of revenues or market share. It is calculated by dividing your own brand’s market share (revenues) by the market share (or revenues) of your largest competitor in that industry.
4. Find out market growth rate. The industry growth rate can be found in industry reports, which are usually available online for free.
5. Draw the circles on a matrix. After calculating all the measures, you should be able to plot your brands on the matrix. You should do this by drawing a circle for each brand.

share and generate the most cash are considered stars. However,

because of their high growth rate, stars also consume large amounts of cash.
Cash cows: Cash cows are the leaders in the marketplace and generate more cash than they consume. These are business units or products that have a high market share but low growth prospects.
Dogs: Also known as pets, dogs are units or products that have both a low market share and a low growth rate. They frequently break even, neither earning nor consuming a great deal of cash. These business units are prime candidates for divestiture.
Question marks: These parts of a business have high growth prospects but a low market share. They consume a lot of cash but bring little in return. In the end, question marks, also known as problem children, lose money. However, since these business units are growing rapidly, they do have the potential to turn into stars.

Cash cows - to get the maximum possible profit, for

as long as possible;
Wild cats - for perspective products, investment and development;
Dead dogs - stopping their support and / or leaving the market (decommissioning).

of organizations, Arthur D. Little developed the strategic condition matrix, which is

also known as the ADL Matrix. The ADL Matrix consists of two important dimensions: the competitive position and industry maturity (maturity of the product).

competition because a brand-new or unknown product is brought to

market.
Strong. The market share is strong and stable, regardless of what the competition is doing.
Favorable. The organization enjoys competitive advantages in certain segments of the market. There are many competitors.
Tenable. The position of the organization in the overall market is small and market share is based, among other things, on a niche or some other form of product differentiation.
Weak. The organization experiences continual loss of market share and it business line is too small to maintain profitability.

solving strategic and political issues of the enterprise and is

based on two dimensions: the profitability of the Strategic Economic Zones and the competitive position held by the firm in this strategic zone

approach for the multibusiness corporation to prioritize investments among its

business units.
It helps multi-business corporations evaluate business portfolios and prioritize investments among different business units in a systematic manner.
This technique is used in brand marketing and product management. The analysis helps companies decide what products need to be added to a product portfolio as well as what other opportunities should continue to receive investments.

the company's growth in the market.
The matrix is also

called the "commodity-market" matrix.
The Ansoff matrix is widely used in practice in the process of strategic enterprise management.

seeks to achieve growth with existing products in their current

market segments, aiming to increase its market share.  Market Development - the firm seeks growth by targeting its existing products to new market segments.  Product Development - the firms develops new products targeted to its existing market segments.  Diversification - the firm grows by diversifying into new businesses by developing new products for new markets. 

Forces is a simple but powerful tool for understanding the

competitiveness of your business environment, and for identifying your strategy's potential profitability.

competitors. How many rivals do you have? Who are they,

and how does the quality of their products and services compare with yours?
Supplier Power. This is determined by how easy it is for your suppliers to increase their prices. How many potential suppliers do you have? How unique is the product or service that they provide, and how expensive would it be to switch from one supplier to another?
Buyer Power. Here, you ask yourself how easy it is for buyers to drive your prices down. How many buyers are there, and how big are their orders? How much would it cost them to switch from your products and services to those of a rival? Are your buyers strong enough to dictate terms to you?
Threat of Substitution. This refers to the likelihood of your customers finding a different way of doing what you do. For example, if you supply a unique software product that automates an important process, people may substitute it by doing the process manually or by outsourcing it. A substitution that is easy and cheap to make can weaken your position and threaten your profitability.
Threat of New Entry. Your position can be affected by people's ability to enter your market. So, think about how easily this could be done. How easy is it to get a foothold in your industry or market? How much would it cost, and how tightly is your sector regulated?

potential markets or consumers into specific groups.  Market research analysis

using segmentation is a basic component of any marketing effort.
Market segmentation is a strategic marketing tool to define markets and then allocating resources appropriately. Using a statistical techniques called factor analysis and cluster analysis combines attitudinal and demographic data.

strategic approach. It is one of the most commonly applied

marketing models in practice

status, education, household (or business), size, length of residence, type

of residence or even  profession/Occupation)
2. Psychographics. While demographics explain 'who' your buyer is, psychographics inform you 'why' your customer buys
Interviews, Surveys, Customer data,
3. Lifestyle (Hobbies, recreational pursuits, entertainment, vacations, and other non-work time pursuits)
4. Belief and Values (Religious, political, nationalistic and cultural beliefs and values)
5. Life Stages
6. Geography
7. Behaviour (the nature of the purchase, brand loyalty, usage level, benefits sought, distribution channels used, reaction to marketing factors.
8. Benefit is the use and satisfaction gained by the consumer.

to choose the right segment of the market, where the

company will be able to make the best use of its comparative advantages.

a strategy for penetrating this segment.
The enterprise has two

ways. The first is to position the company next to one of the existing competitors and start a fight for market share, the second is to develop a product that is not yet on the market.
However, before making such a decision, the company's management must make sure of the availability of technical, economic opportunities and the sufficiency of the number of potential buyers of the proposed product.

the situation in which it is currently located, would be

incomplete without studying the surrounding competitive environment.

in the collection and review of information about rival firms.

It’s an essential tactic for finding out what your competitors are doing and what kind of threat they present to your financial well-being.

Competitors (If you need a little help identifying your competitors,

Google is a great resource.)
2. Analyze and Compare Competitor Content
3. Analyze Their SEO Structure
4. Look at their Social Media Integration
5. Identify Areas for Improvement

to determine the place occupied by the company, products, brand

in the market in relation to other companies, products, brands and consumers.
Positioning is based on the structuring of a set of products or companies based on the perception or preferences of consumers.
Objective similarities and differences of products, brands and companies
The attitude of consumers is more for companies, than real characteristics of product.