Synopsis of Various Strategic Analysis Tools
Porter’s Five Forces is a model that can identify and analyze five competitive forces that will shape the industry. It also works by determining the industries weaknesses and their strengths as well. (Investopedia, 2018) Those five forces are competition in the industry, potential of new entrants into the industry, power of suppliers, power of customers and the threat of substitute products. In using this method, we can look at the history of Capsim Core and determine what has worked for the company and what hasn’t in order to determine our goals for the future with the company.
SWOT analysis is a method that is used to evaluate a company’s competitive position by identifying its strengths, weaknesses, opportunities and threats. It is an analysis that uses a model that shows what the organization can and cannot do and shows the potential threats. (Investopedia, SWOT Analysis, 2018) In using this analysis, it can help the company see where they stand compared to other companies. This will help give us an idea of what we need to look out for positively and negatively within the company. The goal in looking at this method is to make sure that we plan accordingly for anything that can happen, kind of like the motto prepare for the worst, hope for the best.
Pestle analysis stands for Political, Economic, Social, Technological, Legal and Environmental. This method is used as a tool for companies to track the environment they are operating or planning on launching a new product in. (PestleAnalysis, 2018) By using this analysis it will help us by being able to ask the questions of what is going on in all these areas and if it will lead to increase or decrease in sales for our product. It will help by showing us does the product meet the standards it should be held too and is it going to be something that succeeds in the environment the way it is now in each of these aspects. ‘
SOAR analysis is a method that looks at the strengths, opportunities, aspirations and results, it will focus on the strengths and the vision of the future for the company to come up with a strategy that will be best for the success of the company. (ASQ, 2016) The best way to go about using this analysis for this company would be to focus on the success of the future in the past and the opportunities that we have been given, in looking at these areas we would be able to determine how we need to strategize in the future to get the best possible results.
Pareto analysis is a simple technique for prioritizing changes by identifying the problems that will be resolved by making these changes. In using this method, you can make a priority based on the changes that will improve the situation the most. Pareto is also known as the 80/20 rule in which is the idea that 20 percent of cause will generate 80 percent of the results. (Team, 2018)
References:
ASQ. (2016, May 6). SOAR Analysis. Retrieved from ASQ: http://asqservicequality.org/glossary/strengths-opportunities-aspirations-results-soar-analysis/
Investopedia. (2018). Porters Five Forces. Retrieved from Investopedia: https://www.investopedia.com/terms/p/porter.asp
Investopedia. (2018). SWOT Analysis. Retrieved from https://www.investopedia.com/terms/s/swot.asp
PestleAnalysis. (2018). Pestle Analysis. Retrieved from http://pestleanalysis.com/what-is-pestle-analysis/
Team, M. T. (2018). Pareto Analysis. Retrieved from https://www.mindtools.com/pages/article/newTED_01.htm
