Question

I have to come up with a strategic analysis for e-sonic. Including Industry Classification, External Market Environment Analysis, and Internal Capability Analysis.

Answer 1

Strategic analysis refers to process of conducting analysis or research on a certain company and it’s operating environment to prepare certain required strategy.

Such analysis may include subjects like industry classification, external market environment analysis, and internal capability analysis.

In strategic analysis we need to understand type of service provided by e-sonic, also need to understand type of the company.

Industry Classification – It is one of the critical point which needs to be reviewed by a company’s management. What type of services are rendered by the company and their requirement by the existing customers has to be reviewed periodically. Industry classification may help in identifying that in which “position” a company is existing and potentially to which “position” a company may go. A company may be a leader or a laggard in the market.

External Market Environment Analysis – Strategic analysis would allow to analyze critical elements of external environment such as demand and supply for services of a company, competition in market, industry prospect, and human capital availability in the market. Depending on analysis of aforementioned factors a company may decide to go change in the current company policy.

Internal capability analysis – Internal capability analysis helps in understanding strengths as well as weaknesses in the company and after identifying weak areas a company may take further actions to overcome such issues. Internal issues may be in form of insufficient human forces, non-availability of critical factors required for end to end service to customers etc.

In nutshell Strategic analysis would help the company to survive in market successfully.