Step 1: State the problem

The second step is to decompose the problem (logic tree)

The third step is prioritization (funnel method)

The fourth step is to analyze the issue

The fifth step key analysis

The sixth step summarizes suggestions

Step 7: Communication

The cycle starts over again

S Advantage

W Disadvantages

O Chance

T threaten

The so-called SWOT analysis, that is, situation analysis based on internal and external competitive environments and competitive conditions, is to list the various major internal strengths, weaknesses, and external opportunities and threats that are closely related to the research object through investigation, and in the form of a matrix Arrange, and then use the idea of ​​​​system analysis to match various factors with each other for analysis, and draw a series of corresponding conclusions, and the conclusions usually have a certain degree of decision-making.

Using this method, we can conduct a comprehensive, systematic, and accurate study of the situation in which the research object is located, and then formulate corresponding development strategies, plans, and countermeasures based on the research results.

SO developmental strategy

WO turnaround strategy

ST defensive strategy

WT retreat strategy

politics Politics

economy Economy

society Society

technology Technology

PEST analysis is mainly used to analyze the macro environment and think about the company's current environment or the market environment it will enter.

Political environment: the political system, economic system, laws and regulations of a country or region, etc.

Economic environment: social and economic conditions, including GDP, consumption structure, fiscal revenue, etc.

Social environment: consumers are education level, religious beliefs, customs, values, etc.

Technical environment: new technologies, new processes, new materials emerging in the market and their development trends, and investigating their maturity in application fields

Porter's five forces model analyzes the basic competitive situation of an industry by bringing together a large number of different factors into a simple model. The five forces model identifies five major sources of competition, namely the bargaining power of suppliers and buyers, the threat of potential entrants, the threat of substitutes and, lastly, competition between firms in the same industry.

In a certain sense, competitive strategy stems from an enterprise's deep understanding of the competition laws that determine industry attractiveness. In any industry, whether it is domestic or international, whether it produces products or provides services, the law of competition will be reflected in these five competitive forces. Therefore, Porter's five forces model is a strategic analysis tool often used by companies when formulating competitive strategies.

When a company suffers an external shock, the SCP analysis model will analyze the impact of the external shock from three perspectives: specific industry structure, corporate behavior and operating performance.

external shock shock

Industry structure structure

corporate behavior conduct

operating results performance

problematic product question marks

Star Products stars

Slim dog products dogs

Taurus products cash cow

It mainly analyzes the external environment of the enterprise and the strategic combination that the enterprise should adopt.

Steps to create a SPACE matrix

Based on the reasons why customers choose one company over other companies when purchasing, and considering the two aspects of price and product added value, 8 strategies can be formed.

Cost leadership strategy With low price and low added value, we can form a concentrated cost leadership advantage.

low price Obtain cost advantage through low price, very easy to be imitated

mixed strategy High quality, low price, gain a competitive advantage that is difficult to imitate

Differentiation Strategy Differentiation to form high quality and slightly higher competitive advantage

Focused differentiation warfare Form a competitive advantage with particularly high prices and high-quality products

high price skimming strategy Regardless of price and product value, generally in a monopoly industry

Step 1: Define the elements

Step 2: Evaluate the elements

Step 3: Draw the McKinsey Matrix

The value chain analysis method divides the activities that increase value inside and outside the enterprise into basic activities and supporting activities.

The basic activities involve enterprise production, sales, incoming logistics, delivery logistics, and after-sales service.

Supporting activities involve personnel, finance, planning, research and development, procurement, etc. Basic activities and supporting activities constitute the value chain of the enterprise.