Michael Porter's Five Forces
According to Wikipedia, Porter's 5 forces analysis is a framework for the industry analysis and business strategy development developed by Michael Porter of Harvard Business School in 1979 . It is helpful in particular to small businesses and startups, because it determines how competitive the market already is and how it would respond to a new brand or product entering it.
SWOT Analysis for Strategic Decision Making
All businesses have goals that involve creating a sustainable competitive advantage over their competitors. This requires companies to develop effective business strategies that exploit their operational advantages over competitors, while minimizing their disadvantages. An effective strategic development procedure that links internal organizational strengths and weaknesses, with external opportunities and threats, is SWOT (strengths, weaknesses, opportunities, and threats) analysis.
Theories of Strategy Formulation
Past and current theories in the strategic management field are as varied as the industries they try to guide. These business climates may explain the lack of a universally accepted set of theories. Although numerous methods for companies to approach their strategic development exist, some are more widely used and accepted than others.
TOWS Analysis for Strategic Decision Making
How does a firm decide to pursue one course of action over another? Along with SWOT analysis, TOWS analysis is a process that requires management to think critically of its operations. By identifying several action plans that could improve the company's position, TOWS analysis allows management to choose those strategies that most effectively capitalize on the available opportunities.
The Porter's Five Forces Model as a Tool for Business Analysis
The Porter's Five Forces model is a business model that was developed to help entrepreneurs understand the different forces that have an influencing role in their respective industries. With this model the entrepreneurs can not only gauge the viability of their business ideas but they can also design strategies to help them compete effectively in their environments.
Feedback Controls: Analyzing Strategic Decisions
Feedback is an essential means for companies to evaluate the effectiveness of their strategic decisions. Through the use of budgets, ratio analysis, audits, and objectives, companies are able to measure the performance of management, departments, and/or individual business units.
Three Levels of Strategy
Strategy in business can be understood to be split into three different levels - Corporate Unit level, Business Unit level and the Operational level, the main difference between them being due to their sphere of influence. A brief introduction to these levels is necessary for estimating the scope of strategy and the power it wields on various business and operational activities.
Subsidizing Your Network
Network effects have been a successfully utilized strategy for building durable competitive advantages, but are often the most difficult strategy to successfully implement. Understanding the critical components of building your network will help you achieve stronger network effects in the long run.
Business Innovation vs. Technological Innovation
When starting a new business, there are two distinct ways to innovate that provide your company the ability to create a sustainable business. Understanding the difference between business and technological innovation and how those innovations are developed and sustained will provide you a clearer roadmap for your start-up.
Facing the Strategic Challenges of Growth: The Churchill and Lewis Growth Model
According to the Churchill and Lewis growth model a business goes through six stages of growth/development. These six stages involve conception/existence, survival, profitability/stabilization, profitability/growth, take-off, and maturity.