Analysis tools aid in comprehending industries and their competitors by gaining an awareness of the environment in which they operate and their interactions with the market to increase organizational performance and efficiency. Most analytical tools use historical, backward-looking information to estimate future assumptions. It is crucial to use caution when interpreting the outcomes of strategic analysis. Otherwise, an organization’s internal pressures or prejudices that seek to justify a specific strategy assumption may adversely impact the analysis. Analysis tools help guarantee a rigorous, balanced approach and help narrow the focus of the analysis.
The SWOT (strengths, weaknesses, opportunities, threats) analysis tool might be adopted in this case. SWOT is a basic but popular tool that aids in comprehending the benefits, drawbacks, opportunities, and threats associated with a particular project or economic enterprise. The goal of the project or business interest is first defined, after which the internal and external factors essential to achieving that objective are highlighted (Tsangas et al., 2019). Opportunities and risks typically exist outside the business, but strengths and weaknesses typically exist within. SWOT analysis can assist in determining an industry’s competitive position and creating a effective strategy. PESTLE (political, economic, social, technological, legal, and environmental) is an additional analytical tool that can be employed. It assists in monitoring the organization’s external microenvironment (Tsangas et al., 2019). It can be a helpful tool for figuring out the political, economic, sociocultural, and technological environment in which an industry functions. An industry’s position, potential, and direction can be determined by using it to assess market growth or decrease.
SWOT is a useful tool for market analysis because it prioritizes internal and external issues, allowing time to be spent concentrating on the most important ones. This comprises a risk assessment to ensure that threats and opportunities with high risk or high effect are identified and dealt with in terms of priority. Analysis of the market must evaluate internal and external aspects that impact the industry to develop an appropriate growth and performance strategy. Another great tool for market analysis is the PESTLE framework, which enables businesses to see their prospects through the prism of the broader economy. It helps to comprehend the industry’s condition in light of all the macroeconomic factors. It aids a company in identifying the most advantageous circumstances during its lifecycle, at the start of operations, or as it enters a new market. The analytical framework of PESTLES provides a birds-eye overview of the industry’s current position and a glimpse into the upcoming market developments. These insights also assist the company in planning its long-term strategy and making decisions for the immediate future.
The SWOT analysis will be employed in the plan to help create a framework for comprehending the state of the industry and identifying areas with potential for growth or rectifying any flaws in the strategy. Internal operations, sales, and marketing, financial planning, staffing, human resources, and customer care will all be subject to analysis using the tool. The plan will use PESTEL to help decide the scope of the study that the industry needs to conduct, help determine who will gather information and how, and identify reliable sources of information. In general, SWOT and PESTLE can be used as strategy framework tools to evaluate an industry’s financial stability, market potential, and competitive advantages or disadvantages. The more one applies SWOT and PESTLE analysis, the more useful information they supply about current surroundings. As a result, the market processes and position will strengthen.
Reference
Tsangas, M., Jeguirim, M., Limousy, L., & Zorpas, A. (2019). The application of analytical hierarchy process in combination with PESTLE-SWOT analysis to assess the hydrocarbons sector in cyprus. Energies, 12(5), 791. Web.
