Empiraa is the strategic execution tool designed for the development of a dynamic and collaborative environment for you and your business.
But mapping out your strategy and understanding your market position is vital to its success. Here are 8 strategic planning tools to help you do just that.
Developing a sound strategy is something every organisation strives to achieve, with a highly effective strategy helping organisations establish their competitive position, grow market share, and thrive in a ruthless business environment.
However, choosing the right tools to execute that strategy and bring their strategic processes to life is something few are concerned with. The first significant part of the strategic management process or business planning involves analysis and planning. The strategy tools and examples we’ve listed in this section are all about helping you understand where you are today and where you want to be tomorrow.
A SWOT analysis is one of the most commonly used planning tools and is a great place to start when you’re mapping out your business strategy. SWOT stands for strengths, weaknesses, opportunities, and threats. This framework allows you to quickly understand the current state of your business and where there may be opportunities or areas of improvement.
Porter’s Five Forces Model
Porter’s Five Forces Model is a tool developed by Michael E. Porter that helps businesses understand the level of competition within an industry and develop strategies accordingly. The model considers five different forces that impact business strategy: supplier power, buyer bargaining power, the threat of new entrants, the threat of substitutes, and rivalry among existing competitors.
GAP Analysis Toolkit
GAP analysis is a process of identifying the difference between where you are today and where you want to be in the future. This toolkit provides a framework for understanding your current state, setting goals, and developing a plan to close any gaps.
PEST Analysis is a framework that helps businesses assesses the Political, Economic, Social, and Technological factors that may impact their business. This information can then be used to develop strategies that take these external factors into account.
VIRO Analysis Tool
VIRO is an acronym for Values, Interests, Resources, and Opportunities. The VIRO framework helps businesses understand their internal and external environment so they can make better strategic decisions.
The Ansoff Matrix is a tool that helps businesses understand the relationship between their products and markets. It also provides a framework for thinking about growth opportunities. The matrix has four quadrants:
- Market Penetration: selling more of your existing products/services to your existing market
- Product Development: offering new or improved products/services to your existing market
- Market Development: selling your existing products/services to a new market
- Diversification: offering new or improved products/services to a new market
BCG Growth-Share Matrix
The BCG Growth-Share Matrix is a tool developed by the Boston Consulting Group that helps businesses understand their relative position in the marketplace. The matrix has four quadrants:
- Stars: high growth, high market share
- Cash Cows: low growth, high market share
- Question Marks: high growth, low market share
- Dogs: low growth, low market share
GE Business Screen
The GE Business Screen is a tool developed by General Electric that helps businesses understand their position in the marketplace and make decisions about where to allocate resources. The matrix has nine quadrants:
- Leader: high market share, high growth
- Contender: high market share, low growth
- Challenger: low market share, high growth
- Follower: low market share, low growth
- Niche Player: high market share, high growth in a niche market
- Turnaround: low market share, high growth in a turnaround situation
- Laggard: low market share, low growth
- Divestiture Candidate: high market share, low growth with no potential for turnaround
- Question Mark: high growth, low market share with potential for turnaround
There are no right or wrong tools for businesses to use, instead the ones that simply suit them best. And those tools might change depending on your businesses needs, goals, and the market in which it operates. The important thing is to continually assess your business’s needs and make sure you’re using the right tools to help you reach your goals.
Empiraa is then the strategic execution tool that allows you to drive your team, your business and its growth by providing a framework for setting goals, measuring progress, and holding people accountable. Discover Empiraa for your team today.