Building a Business Strategy: Analysing the Marketplace, Defining Competitive Advantage and Creating

Analysing the Marketplace, Defining Competitive Advantage and Creating a Framework Ro b To l l ey

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Analysing the marketplace and defining competitive advantage are vital parts of building a business strategy. Competitive advantage is the USP (unique selling point) that sets a business apart from its competitors. Creating an overall framework within which the strategy will operate is also important.

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BUILDING A BUSINESS STRATEGY:

Analysing the Marketplace, Defining Competitive Advantage and Creating a Framework Analysing the Marketplace A SWOT analysis is a key element of a business strategy and is helpful in analysing a business’s strengths and weaknesses. As well as assessing the business’s internal situation, this type of analysis can help the business to understand the external situation of the existing marketplace.

The Importance of Identifying Competitive Advantage The ability to define and articulate its competitive advantage can be make-or-break for a business. The business strategy should explore factors such as how the business will create demand for its products or services and how new technologies will be utilised to enhance profit margins.

Creating an Overarching Framework

A business strategy needs to operate within an overarching framework – this means translating its actions and objectives into specific department roles, goals and overall direction.

A business strategy needs to operate within an overarching framework – this means translating its actions and objectives into specific department roles, goals and overall direction. This part of the strategy should assess the vision and needs of each department and align these with the aims of the business as a whole.

ROB TOLLEY For more information about this topic, visit the blog of Rob Tolley.