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December 18, 2023, vizologi

How to Analyze Strategies: A Simple Method for You

Do you often find yourself struggling to understand the strategies behind decision-making in your personal or professional life? Whether it’s navigating through tough choices or trying to make sense of others’ plans, analyzing strategies can be a daunting task. But fear not! With a simple method, you can break down and analyze strategies in a more manageable way.

In this article, we will provide you with a straightforward approach to understanding and evaluating strategies, helping you make more informed choices and assessments.

Explaining Strategy Analysis: What Is It?

One important factor in business planning is strategic analysis, which refers to the method of examining an organization’s internal and external environments to determine the factors that guide decision-making. There are two key types of strategic analysis: internal and external. Internal analysis focuses on evaluating strengths and weaknesses, while external analysis assesses the broader business environment.

For example, a clothing company might conduct an internal analysis to evaluate its production capacity and employee skill levels, while also considering external factors like consumer trends and competitive pressures.

An example of the importance of strategic analysis can be seen in how Walmart’s early success revolutionized the retail industry. By conducting internal assessments of its pricing and supply chain capabilities, while also evaluating the external landscape of consumer preferences and market trends, Walmart was able to develop a successful strategic plan that propelled its growth.

Different Ways to Analyze Strategies

Different Methods for Analyzing Strategies

Strategic analysis is a vital part of long-term business planning and the first step in the planning process. It involves gathering data to help leaders decide on priorities and goals, shaping a long-term strategy for the business. The process is crucial for understanding the business environment and formulating a strategic plan. Strategic analysis is not a one-time task; it should be conducted periodically to remain adaptable in a changing business environment.

One commonly used strategy analysis method is SWOT analysis, which examines a company’s strengths, weaknesses, opportunities, and threats. Another method is PESTLE analysis, which looks at political, economic, social, technological, legal, and environmental factors that could impact business operations. When done correctly, strategic analysis can significantly improve business performance, as seen in the example of how Walmart’s early success and revolutionizing the industry was tied to effective strategic analysis.

Involving the entire leadership team in these analysis sessions is crucial for effective strategic analysis, as it ensures that different perspectives and insights are considered for a comprehensive analysis. These different analysis methods help companies make informed decisions and shape their long-term strategies.

Steps for Strategy Analysis: Make It Easy

When it comes to strategic analysis, the process can seem daunting, but breaking it down into manageable steps can make it more straightforward for companies. A great starting point is to gather data on the internal and external factors influencing the business. This includes conducting SWOT (Strengths, Weaknesses, Opportunities, Threats) and PESTLE (Political, Economic, Social, Technological, Legal, Environmental) analyses to gain a comprehensive understanding of the company’s position in the market.

Once the data is collected, the leadership team should come together to evaluate the findings. Through collaborative discussions, they can determine the most viable strategic plan based on the analyses. It’s important to involve all levels of management in this process to ensure a well-rounded approach to decision-making.

After the strategic plan is formulated, it’s essential to regularly review and revise it to remain adaptable in an ever-changing business landscape. This iterative process ensures that the strategy remains relevant and effective.

By breaking down the steps for strategy analysis and making it an ongoing practice, businesses can navigate the process with ease and confidence.

Examples of Strategy Analysis in Action

Looking Inside: How to Check Your Strategies

Heading: Examining Your Strategies for Success

Strategic analysis is a fundamental aspect of developing an effective strategic plan. It involves a comprehensive examination of an organization’s internal and external environments to identify critical factors that guide decision-making. The two key types of strategic analysis, internal and external, focus on strengths and weaknesses and the broader business environment, respectively.

An example of strategic analysis can be seen in Walmart’s early success and its impact on the retail industry. By carefully analyzing its internal and external factors, Walmart was able to revolutionize the retail landscape and achieve long-term success.

In the process of internal analysis, organizations assess their tools, collect and research relevant data, and analyze information to identify key findings. This strategic approach allows businesses to capitalize on their strengths and opportunities while addressing weaknesses and threats in the market.

Staying adaptable in a changing environment is a critical aspect of strategic analysis, and it requires ongoing evaluation and examination. By doing so, organizations can ensure that their strategic plans remain relevant and effective in achieving their long-term goals.

How Strategy is Different From Just Looking at Numbers

Strategic Analysis: Going Beyond the Numbers

While numerical data is critical for business analysis, strategic analysis involves much more than just looking at the numbers. It goes beyond financial data and delves into the broader business environment, both internal and external. For example, internal strategic analysis focuses on assessing the strengths and weaknesses of a company, while external analysis looks at the broader business environment.

A practical example to illustrate this concept is how a retail company may have strong financial numbers, but an internal analysis reveals a weak supply chain management system. This highlights the importance of considering non-financial factors in strategic analysis.

Furthermore, strategic analysis involves the use of tools like SWOT and PESTLE analysis to gather and analyze relevant data for strategy planning. It is not solely about the numbers but about understanding the business environment and formulating a strategic plan based on a comprehensive analysis.

Making Use of Strategy Tools

Choose Cool Tools for Strategy Analysis

Selecting Effective Tools for Strategic Analysis

Strategic analysis, a fundamental aspect of long-term business planning, involves evaluating an organization’s internal and external environments to guide effective decision-making. To facilitate this process, organizations can choose from a range of tools for conducting strategic analysis. Common options include SWOT and PESTLE analysis, which help identify internal strengths and weaknesses and external opportunities and threats, respectively.

For instance, SWOT analysis provides insight into a company’s strengths, such as a strong brand reputation or unique technological capabilities, and weaknesses, such as inadequate digital infrastructure or limited financial resources. On the other hand, PESTLE analysis examines external factors like political, economic, social, technological, legal, and environmental influences on the organization.

These tools not only aid in uncovering critical insights but also contribute to the formulation of effective strategic plans. By examining the various components of strategic analysis, organizations can align their goals with market trends and capitalize on their strengths to maximize success. With the right tools at their disposal, businesses can make informed and strategic decisions based on comprehensive data and insights.

What to Do After Strategy Analysis? Take the Next Steps

After completing a thorough strategic analysis, the next steps involve using the findings to guide decision-making and finalize a strategic plan. Conducting a SWOT analysis can highlight key areas where the business excels and areas where it needs improvement. For instance, a company may realize that it has a strong online presence and can use this as a competitive advantage in the market.

Next, it’s important to focus on setting specific goals and identifying the actions needed to achieve them.

For example, if the strategic analysis identifies a growing demand for sustainable products, the company can set a goal to expand its eco-friendly product line. Moreover, communication and buy-in from all stakeholders are crucial in implementing the strategic plan.

Finally, monitoring the execution of the strategy is necessary to ensure that the business remains on track.

For example, regular check-ins on the progress of new initiatives may be necessary to assess their impact and adjust course if needed. These steps will help organizations translate analysis into action and achieve long-term success.

Why Strategy Analysis is Super Useful

Making Your Strategies Better: Learn Here

Improving Your Strategy: A guide to Strategic Method Analysis

Strategic analysis is a fundamental step in long-term business planning that shapes the path for a company’s growth. This method involves thoroughly examining both internal and external factors that could impact decision-making and business planning. For instance, a company may conduct SWOT analysis to assess its strengths, weaknesses, opportunities, and threats. Additionally, external factors like political, economic, social, and technological elements are taken into account using PESTLE analysis.

For example, imagine a retail company considering entering a new market. By conducting a strategic analysis, they may discover potential strengths and opportunities that could drive success in that market. Conversely, they may also find weaknesses and threats that they need to address. All of these findings can significantly shape the company’s strategic planning and future decisions.

By effectively conducting and utilizing strategic analysis, a company can achieve improved business performance and enhance its strategic innovation. The goal is to use these analyses to help guide and influence all aspects of a business’s operations from a strategic standpoint.

Strategy Inside and Outside: Learn the Difference

Understanding Strategy: The Difference Between Internal and External Analysis

When considering the strategic method of analysis, it’s essential to differentiate between internal and external strategic analysis. Internal analysis focuses on evaluating a company’s strengths and weaknesses, often utilizing methods like SWOT analysis. For example, a company may conduct internal analysis to assess its resource capabilities and explore areas for improvement. On the other hand, external analysis involves examining outside factors such as industry trends and market competition.

For instance, an external strategic analysis may involve evaluating market growth and conducting competitor analysis. By understanding the difference between these two types of strategic analysis, organizations can better inform their strategic formulation and make effective business decisions. For example, Walmart’s early success could be attributed to its thorough external analysis, which allowed the company to revolutionize the industry.

Great Examples of Strategy Analysis: Like Walmart

Walmart website

Analyzing Strategic Methods: An Insightful Look

Strategic analysis is a fundamental part of long-term business planning, providing a roadmap for decision-making and goal setting. This process is crucial for understanding the business environment and formulating a strategic plan, guiding the leadership in making effective and informed decisions. Various methodologies, such as SWOT and PESTLE analysis, are commonly used to gather and analyze relevant data for strategy planning.

For example, Walmart’s early success showcases the power of strategic analysis in revolutionizing the industry. By defining the strategy level, conducting internal analysis, and communicating key findings, Walmart developed a strategy that capitalized on its strengths and opportunities, while addressing weaknesses and threats. This approach proves that strategic analysis is crucial for informing strategic formulation and effective business planning.

By involving the entire leadership team, companies can ensure that strategic analysis is done correctly, significantly improving business performance and driving organizations to be more innovative in their strategy. To maintain adaptability in a changing business environment, it’s important to differentiate strategic analysis from other types of analysis and utilize appropriate software tools for the job.

How to Pick the Best Strategy Analysis Tool for You

Choosing the Right Strategy Analysis Tool for You

Selecting the most suitable strategy analysis tool is a critical aspect of long-term business planning. The right tool will help leaders make informed decisions based on internal and external factors and guide them in creating an effective strategic plan.

For example, SWOT analysis assesses a company’s strengths, weaknesses, opportunities, and threats, providing valuable insights into key areas for strategic improvement. On the other hand, PESTLE analysis focuses on the broader business environment, including political, economic, social, technological, legal, and environmental factors.

To make the right choice, consider factors such as the scope of analysis required, the level of detail needed, and the specific aspects of your business you want to address. Understanding the unique needs of your organization will help you select a tool that aligns with your strategic goals. For instance, a company with a heavy focus on customer data may require a different tool than one that relies heavily on operational analysis. By choosing the right strategy analysis tool, you can drive your organization forward with a more effective, informed, and adaptable strategic plan.

Vizologi is a revolutionary AI-generated business strategy tool that offers its users access to advanced features to create and refine start-up ideas quickly.
It generates limitless business ideas, gains insights on markets and competitors, and automates business plan creation.


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