Situational Analysis
Strategic marketing planning plays a crucial role in devising the most relevant marketing strategy that would sustain an organization in today 's rapidly changing marketplace. It is necessary to examine both the internal and external environment where an organization operates in order to have a successful strategic plan. (Vrontis & Thrassou, 2006). Of the five components of strategic marketing planning, the situational analysis component is the component referred to as the foundation of strategic marketing planning (Lorette, n.d.). A situation analysis thoroughly examines the internal and external factors that affect a business. It creates a summary of an organization that will help to understand better, the factors that …show more content…
The theory states that five forces determine the competitive attractiveness and intensity of a market. These five forces identify the point where power lies in an organization. This is used in understanding the strength of the position an organization wants to move into as well as the strength of the current competitive position an organization is in. Porter 's five forces are often used by strategic analysts to understand the profitability of new products or services. The theory can also be used to strengthen areas as well as improve weaknesses to minimize errors. The five forces are the power of suppliers, the power of buyers, competitive rivalry, the threat posed by substitution, and the threat posed by new entry. (American Institute of CPAs, …show more content…
The tool also reveals two (or more) organization 's relative strengths and weaknesses. Organizations often use CPM to understand their external environment as well as the competition in an industry. The matrix makes use of the critical success factors of an industry to identify and compare the key competitors of an organization. CPM also measures the strengths and weaknesses of an organization and compares it with its competitors in order to identify the areas of improvement. (Jurevicius,
Strategic marketing planning plays a crucial role in devising the most relevant marketing strategy that would sustain an organization in today 's rapidly changing marketplace. It is necessary to examine both the internal and external environment where an organization operates in order to have a successful strategic plan. (Vrontis & Thrassou, 2006). Of the five components of strategic marketing planning, the situational analysis component is the component referred to as the foundation of strategic marketing planning (Lorette, n.d.). A situation analysis thoroughly examines the internal and external factors that affect a business. It creates a summary of an organization that will help to understand better, the factors that …show more content…
The theory states that five forces determine the competitive attractiveness and intensity of a market. These five forces identify the point where power lies in an organization. This is used in understanding the strength of the position an organization wants to move into as well as the strength of the current competitive position an organization is in. Porter 's five forces are often used by strategic analysts to understand the profitability of new products or services. The theory can also be used to strengthen areas as well as improve weaknesses to minimize errors. The five forces are the power of suppliers, the power of buyers, competitive rivalry, the threat posed by substitution, and the threat posed by new entry. (American Institute of CPAs, …show more content…
The tool also reveals two (or more) organization 's relative strengths and weaknesses. Organizations often use CPM to understand their external environment as well as the competition in an industry. The matrix makes use of the critical success factors of an industry to identify and compare the key competitors of an organization. CPM also measures the strengths and weaknesses of an organization and compares it with its competitors in order to identify the areas of improvement. (Jurevicius,