Analyzing a Company’s Competitive Position and Resources

Question

Explain the analyzing a Company’s Competitive Position and Resources.

Answer 1

This section discusses the methods of evaluating a company’s internal conditions – its relative cost position, resource capabilities, and competitive strength v/s rivals.

The analytical spotlight will be trained on the five questions:

(a) How well is the organization’s current strategy working?

(b) What are the company’s resource weaknesses and strengths and threats and its external opportunities?

(c) Are the company’s costs and prices competitive?

(d) Is the company competitively weaker or stronger than the important rivals?

(e) What strategic problems and issues merit front-burner managerial notice?

In probing for answers to these questions, four analytical instruments – SWOT analysis, benchmarking, value chain analysis, and competitive strength assessment will be used. All those are important methods for revealing an organization’s competitiveness and for helping organization managers match their strategy to the company’s own exacting conditions.