Strategic problems of the company

The purpose of this phase of the analysis is to identify strategic issues that may prevent the company from achieving success. The solution of this problem involves the generalization of the results of the analysis of the company’s position and the analysis of the industry and the competitive environment. All serious problems of the company should be taken into account when developing a strategic plan. The company must choose methods to combat difficulties in the face of global competition, ways to achieve priority in innovation, reserves for reducing costs, ways to maintain and increase business growth, methods to increase the company’s brand awareness, the possibility of using e-commerce. It is also necessary to make a decision on important issues, in particular: expanding the range of products, conducting research and development to create new products, increasing production capacity, lowering prices in response to similar actions of competitors, adding new consumer properties of goods, expanding investment outside the country. Lastly, consideration should be given to how to respond to draft legislation that could dramatically increase production costs; to reduce consumer interest in the company’s new products; on demographic changes in the segment of major consumers, etc.

To identify problems in a timely manner, the results of the tests carried out should be studied and precisely determined what needs to be focused on in order to achieve financial and competitive success in the long term. It is difficult to overestimate the importance of this work. Without knowing the company’s problems, it makes no sense to start developing a strategy.

The better the company’s strategy corresponds to the external environment and the internal state of the company, the less need for significant changes. On the other hand, if today’s strategy does not meet the requirements of the future, then the main task should be to develop a new strategy.

A thorough analysis of the company’s position, industry and competitive situation is essential for the development of strategy. It allows you to identify the advantages and disadvantages of the strategy, opportunities and weaknesses of the company, as well as to assess the company’s ability to protect and improve its position, taking into account the driving forces, competitive pressure, actions of rivals. Without this information, it is impossible to develop a strategy that meets the needs of the company.