Porter's 5 Forces
Porter’s 5 forces model is there to assess the intensity of competition and attractiveness of any Industry.
Before entering into any business we have to assess, how much growth potential does the industry have.
It consist of 5 forces where we have to decide whether each force will against us or in favor to us. If majority forces can go against us then we should not go into that industry.
Scenario Planning
Scenario Planning is future prediction of our business or industry. And by predicting the future we can plan well in advance accordingly.
Most of the business makes the predictions on the basis of most likely scenarios. But scenario planning suggest that we should create Best case scenarios and worst case scenarios also.
To prepare the detailed scenario we must have to decide the Key drivers of our business which are important to our business but are uncertain in future.
Strategic Capabilities
Capability = Resource + Competence
Threshold Capability = Minimum capabilities needed for the organisation to be able to compete/survive.
Strategic Capability = Threshold capability plus the capabilities which can give you competitive advantage.
Now what’s the competitive advantage?
If you have unique resources or any core unique competence then we can say you are having competitive advantage.
Value Chain Analysis
Value chain analysis is identifying the activities which are creating value towards competitive advantage.
Ways to stay ahead of competitors
- Cost leadership
- Differentiation
It involves five ‘primary’ and four support activities and then we have to see if each of them is giving cost advantage or differentiation quality advantage.
SWOT Analysis
It’s very easy model to analyse your internal as well as external environment.
We should try to neutralize weakness and convert threat into opportunities or take precautionary steps against threats.
We should also match our strength with opportunities otherwise our strength is of no use.
