Incorporate an Industry Analysis and a Strategic Planning
Business Strategic Development and Sector / Industry Analysis are crucial components of a company’s strategic planning process. These activities help organizations assess their current position, their internal capabilities, their external opportunities and threats, and allow the business to identify growth opportunities and develop a more informed and clear roadmap for achieving their long-term objectives
A thorough understanding of the external sectoral landscape informs the development of a company’s strategic plan, ensuring that the strategies and initiatives align with the broader industry context.
Strategic Planning refers to the process of creating, refining, and executing a company’s strategic plan. It involves defining an organization’s mission, vision, and long-term goals while setting clear objectives, determining the strategies and actions required to achieve those objectives and allocating resources effectively, thus guiding the company’s growth and success. Strategic Planning goes through the definition of the Business’s Mission and Vision statements, a SWOT analysis and an establishment of SMART short and long term goals for the business that align with its Mission and Vision.
Once set, the strategies and action plans required to achieve the goals are identified and the needed resources to support and implement the strategic initiatives effectively are determined. The implementation of a detailed plan is then authored outlining the steps, responsibilities, timelines and milestones for each strategic initiative.
A continuous measurement (through KPIs), monitoring and adaptation of the progress toward the goals and an assessment of the outcomes are important to make the necessary adjustments to the strategy based on performance data and changing market conditions in order for the business to stay on course
A better understanding of the industry and sector for more informed strategic decisions..
Sector (or Industry) analysis involves evaluating specific industry sectors or markets along with the external environment in which a business operates or plans to enter and identifying opportunities and challenges within these sectors. This analysis provides valuable insights into industry trends, competitive forces and market dynamics allowing a better understanding of the industry’s structure, trends, opportunities and challenges thus permitting more informed strategic decisions.
This analysis is typically based on market research where data and information are gathered about the target sector including market size and trends, growth rates, target customer demographics, behaviors, needs and preferences, competitive landscape and technological trends and advancements. Furthermore, industry-specific regulatory and legal factors, economic, social, cultural, environmental and sustainability factors are gathered and assessed.
Over and above that, a SWOT analysis is undertaken at the industry level along with a competitive analysis of the existing competitors within the sector and an assessment of the potential risks and challenges associated with entering or operating within the sector, including economic risks, competitive risks and regulatory risks. Finally, an opportunity assessment allows the identification of specific opportunities for growth, diversification or innovation within the sector.
A future trajectory of the sector is eventually predicted based on the insights from sector analysis that align with the organization’s strategic goals and this outlook can inform decision-making in the strategic planning process.
