Chpater 2.

Strategic Analysis & Intuitive Thinking

Strategic Analysis-a method wherein one studies the environment thereby conducting a business strategy
(business Strategy). A way of assessing possible benefits, dangers, or predictable outcomes that the business
may encounter.
Intuitive Thinking
Seven Analytical Methods
-Seven analytical methods such as SWOT, PEST, Porter’s five forces, four corners, value chain, early warning
scans, and war gaming are employed in strategic analysis.
SWOT - Commonly used tool in strategic analysis is SWOT (Strength, Weakness, Opportunities, and
Threats) that determines four areas surrounding the business activity or business.
Strength
1. Organization’s/business ability to do better than competitors
2. Organization’s/business selling points
3. Competitor’s and consumer’s perception of the organization/business strength
4. Organization’/business forte
Weakness
1. Other organization can do than you
2. Assessment of organization’s/business value
3. Competitor’s and consumer’s perception of the organization/business weakness
Opportunities
1. Political, economic, socio-cultural or technology (PEST) favorable changes to the organization/business.
2. Gaps in the environment or unsatisfied demand
3. Innovations that the organization/business can bring into the consumer group
Threats
1. Political, economic, socio-cultural or technology (PEST) unfavorable changes to the
organization/business.
2. Limitations of the organization/business
3. Activities of competitors giving a negative outcome to the organization/business
PEST (Political, Economic, Socio-Cultural and Technological)
-It calculates the growth and downfall of the market, position as well as the probable direction of the
organization or business. Four factors gauge the stability of the institution being studied.
Political Factors-Cover regulations imposed by the government like employment laws, regulations in the
environment, tax program, restrictions in trading and the political constancy.
Economic Factors-Influence the capital and buying power of an organization or business. It also monitors
economic growth, inflation rates and interest as well the currency exchange rate.
Social Factors-This area focuses on the growth of the population, age distribution including the population’s
attitude towards health issues.
Technological Factors-Affect the buying power of the market due to the presence of incentives from
investments and the revolutionary ideas and social media.
Factors from the PEST can be categorized as a threats in a SWOT analysis while it is favourable to complete the
PEST analysis first before having a SWOT analysis. The four aspects of the PEST differ in importance on the
kind of business being engage.
Porter’s Five Forces Analysis-It evaluates the business power, strengthen the competitive stance, and flow of
how the business will head. Strategic analysis usually employs Porter’s five forces to give an insight if a new
product or service is feasible or not.
Supplier Power-Is an evaluation how convenient for the suppliers to raise up price and is driven by the number
of suppliers in every aspect.
Buyer Power-Gauges how comfortable for buyers to dive price down which is subject to the number of
potential buyers the significance of every buyer, the value of the buyer of transferring from one supplier to
another.
Competitive Rivalry-Is where the thrill comes in as the number of competitors play in the market that will
offer different products and many diminish attractiveness in the market.
Threat of Substitution-Is made when buyers purchase substitute products due to the spiral height of a price
increase. When it happens, it decreases the number power of suppliers and the attractiveness of the product in
the market.
Threats of new entry-Takes place to new entrepreneurs unless the older businesses have a strong market
portfolio that will block the buyers from purchasing to the new entrants. This can be seen in patents, scale
economics, required capitals or state laws, likewise profits will decrease to a competitive price.
Four Corner Analysis
Focuses on motivation, management, actions, and capabilities on the competitor strategic portfolio.
1. Create a profile of the competitor’s strategy
2. Distinguish the competitor’s possible response to a variety of strategic plans other competitors may
undertake
3. Know the competitor’s possible reaction to the variety of industry transfer and changes in the
community.
Competitors Future Strategy based on:
Motivation
 Drivers
 Financial Goals
 Cooperate Culture
 Organizational Structure
 Leadership team background
 External constraints
 Business philosophy
Management Assumptions
 Company’s perception of its strengths and weaknesses
 Cultural traits
 Organizational value
 Perceived industry forces
 Belief about competitor’s goal
Actions
Current Strategies
 How the business will create value?
 Where the business will choose invest
 Relationship and networks the business had developed
Capabilities
 Marketing Skills
 Ability to service channels
 Skills and training to work force
 Patents and copyrights
 Financial strength
 Leadership qualities of CEO (Downey,2007)
Value Chain Analysis-Uses the values of their customers based from the organization’s principles. These
activities that the organization will create are allocated in a separate group of tasks deemed to add values which
will be a competitive source of benefits.
3 steps
1. Primary activities of the organization or business operations enable the company to make a product,
promote, deliver and supply such products to the consumer as well as provide after sales support.
2. Assign a costing for each activity to provide managers with significant awareness of the inner strength
of the organization or business.
3. Recognized the event that are crucial to the market triumphs and satisfaction of the customers.
3 considerations
1. Company’s mission enables the selection of activities that an organization or business undergo
2. Industry’s type is the nature of the trade encourages the significance of these activities
3. Value system covers the value of the organization or business partners to the consumers
Early Warning Scans-Forecast or envision events in an earlier date to be able to distinguish possible downfalls
or counter attack from its competitor.
Seven Components of early Warning Scans
1. To define its market and the area of the coverage.
 2. To know the open system that will allow organization/business to get information and its significant
competitors.
3. To filter the information that has been gathered and the ability to interpret the data for future endeavor
or strategic shifts.
4. To possess a predictive intelligence on the gathered information of the competitors as well as being
able to foretell the direction of where it is heading
5. To have a communication intelligence that will allow the appropriate individual in an organization or
business sectors to obtain a regular update on these key signals.
6. To provide a contingency plan for events that have great probability and potential that may need
change of strategy, plans or actions.
7. To give a cyclical process of filtering the information gathered for warning signals and being able to do
something in case where threat or opportunities take place. Its best to be flexible to handle short term
situation.
War Gaming-Is a method of knowing competitive liabilities and mistaken internal postulate and strategies
made by the competitors. Models of competitive situation are employed to investigate the proposition of
changes in strategy in a place considered as a; no risk. This method inspires new techniques of conceptualizing
the competitive market.
Characteristics of War Game Enterprise
1. Offsite scene
2. High ranking officers representing a cross functional blend of participants
3. Duration of 2 to 3 days
4. Composition of 4 or more teams with 4 to 8 members per team. Each group represent either one of its
competitor or the sponsoring company
5. Allocating preparation time where each team describe its strength and weaknesses

INTUITIVE AND NON-INTUITIVE THINKING

Without the use of facts and data, one may use intuitive thinking in decision-making. On the other hand,
non-intuitive thinking stems from reading books and knowledge derived from school. Because of experiences,
skills, practices, and wisdom, non-intuitive thinking transforms into an intuitive process.
When confronted with a problem, it is important to find answers by thinking critically. Critical thinkers
examine new knowledge and experiences compared to past experiences and information. However, if such
validation of both timelines is consistent, then this person can make good judgment and if not, this individual
researches and notes down the difference.
THREE WAYS OF DISCOVERING NON-INTUITIVE THINGS:
1. Gaining more experience allows the individual to gain new ideas and develop ways to address
issues and problems. Thus, life experiences hone once intuitive skills.
2. Doing research helps understand inconsistencies, and solves problems.
3. Learning by reading, studying, and seeking advice from mentors and teachers shape critical
thinking abilities (Problem-Solving-Techniques, 2015).
MAP OF SOCIAL NETWORKS USING INTUITIVE THINKING FOR E-COMMERCE AND MARKETING
TOOLS
-Gagan Mehra (2015) lists 91 social networks operating worldwide. E-commerce reaches wider audience and
consumers. The target market can directly query, call, and buy online.
GENERAL PURPOSE OF
SOCIAL MEDIA SITES
1. Facebook
-world’s biggest social
network with more than 1.4
billion members. Facebook
users can make personal
profile to post messages,
pictures, and videos. Also,
they can use their
messengers for video calls
and chats.
2. QQ
-launched in China with 800
million subscribers with six
languages (English,
Japanese, Spanish, German, members.
French, and Korean). It
offers virtual money the “Q
coin” for commercial
transactions.
3. WhatsApp
-acquired by Facebook in
2014 but in a separate entity
with over 700 million
members and it offers instant
messaging.
4. QZone
-operated in China with 600 messages known as tweets. members can text or post
million subscribers. Owned
by Tecent that markets
accessories where users
customize features in their
websites.
5. WeChat
--has almost 500 million
users and specializes in
mobile application with text
messaging and voice calls.
6. LinkedIn
-a gateway for recruiting
workers and selecting the
best candidate in their
respective field and it has
more than 350 million
followers.
7. Skype
-permits 300 million active
users to call, video call, and
instant messaging.
8. Google+
-has over 300 million
subscribers with Hangouts, a texts, images, audio, and
video conferencing
highlights.
9. Instagram
-provides photo and video
sharing to over 300 million
10. Baidu Tieba (under the
brand name Postbar)
-engages in search engines among the largest Russian
to link continuing accounts
for a particular theme to over million users
300 million members.
11. Twitter
-an online news at the same aggregation as a web
time a social network that
allows more than 300 million where over 100 million
users to post 140-character
12. Viber
-provides free phone calls
and text messages to over
250 million members.
13. Tumblr
-a microblogging site that
permits over 200 million
users to post text, images,
videos, quotes, link, and
audio clips to their
tumbleblogs.
14. Snapchat
-allows 200 million users to
shoot videos pictures insert a experiences to each other
text, and drawings then
transmit
These file(s) to a list of
contacts.
15. Line
-social network messaging
that permits 200 million
users to send and receive
video files.
16. Sina Weibo
-popular site in China with
over 150 million users,
another microblogging social
network.
17. VK (VKontakte)
-similar to Facebook, and is
social network with over 100
18. Reddit
-a social news and media
content and discussion
direct links.
19. YY
-famous social network in
China hat provides group
video hats allowing users to
watch an individual lecturing
or performing with an
estimate of 100 million
members where they can
convert virtual money to real
currency.
20. Taringa!
-makes 75 million members
in Latin America that shares
information, content, and
21. Telegram
-focuses on instant
messaging, privacy, and
multi-platform to over 50
million users and it’s nice
because of its features such
as ability to send hidden,
encrypted, and self-
destructing messages of
videos and photographs.
22. Tagged
-social discovery website
with 300 million members.
23. Myspace
-it’s a social networking site
that is dedicated to have an
interactive, link of
acquaintances, private
profiles, blogs, music,
pictures as well as videos
among 200 million members.
24. Badoo
-an online dating social site
hat is participated in almost
200 countries with 20 million
users.
25. StumbleUpon
-a browser toolbar
recommends its 10 million
active members to web
content and allows them to
rate web pages, photos,
videos in tune of their
interests and tastes.
26. Foursquare
-a local search and discovery
service that assists mobile
users to the places they want
to go.
27. Meetme (formerly
Yearbook)
-a social network intended
for making new friends to
chat.
-a online website that
partitions artworks into
photography, digital, and
traditional art, film making,
literature, and other genres
of art.
-a social network where 500, 53. Nextdoor
000 Christian members
watch television programs -a site for neighbors in the
based from the Bible. US that allows members o
connect with the person next
44. Flixster door.

28. Meetup 36. Fotolog -an American movie website

-allows group users to meet
in person from different
places to deliberate and
discuss.
29. Skyrock
-focuses on the French
speaking community where it
offers members to make
their profiles, blogs, and
allows users to interact
through messaging.
30. Delicious
-a website that stores,
shares, and discovers web
for bookmarking to its
members.
31. Kiwibox
-a social network for young
adults and teenagers where over 20 million members.
they browse through its
online magazine.
PHOTO SHARING
NETWORKS
32. Snapfish
-one of the biggest web
photograph sharing networks LIFESTYLE NETWORKS
that provides unlimited space
for pictures.
33. Flickr
-a video and imaging hosting watch, and listen to their
site allowing bloggers and
phot enthusiasts to post
photos.
34. Photobucket
-an image and video hosting
website specializing in
pictures intended for
personal and business
opportunities.
35. DevianArt
that allows user to view new
-its based is on South and box office movies. TRAVEL NETWORKS
America that specializes on
45. Gaia Online 54. Wayn
photo blogging network and
is available in 200 countries. -a social network that guides
-deals with anime works
(such as avatars, gaming) members where to travel and
37. Pinterest what to do and allows
-a photo sharing website that 46. BlackPlanet members to create profile
motivates mostly women and upload photos.
-a social network providing
members to take pictures for match making profiles, jobs, 55. CouchSurfing
posting.
and political dialogues
among African Americans. -offers members to browse
38. Buzznet online when they want to find
-allows members to share 47. Care2 a place to stay while on
journals, photos, and videos travel.
-links activists, organizations,
based from the interest of and businesses from around 56. TravBuddy
their members.
the globe to create a
difference. -it shows who are going to
39. We Heart It travel in the same places,
-enlightens photo 48. CaringBridge timelines and members
enthusiasts to share their create blogs.
-a non-profit website that
pictures for inspiration to provides help to the needy
when they are hospitalized.
MOBILE NETWORKS
40. Path 49. VampireFreaks
57. Cellufun
-a photo sharing and -it highlights user groups to
messaging services where create their own -secret social gaming group
members are allowed to post communities (cult). where users make avatars to
and share with 500 of their signify themselves and it can
contacts. 50. CafeMom be accessed to any cellular
phones.
-a social site where mothers
meet online to share life 58. MocoSpace
experiences and topics
about motherhood. --a gaming network that
41. Last.fm embraces HTML5 for mobile
-provides music services 51. Ravelry phones.
allowing members to share, -a website that discusses 59. Itsmy
and teaches people about
favorite songs. weaving, spinning, -cellular gaming site that
42. Reverb Nation crocheting, and knitting and allows communication
get feedback from each between gamers.
-a website that guides other.
musicians run and manages
their careers as well as 52. ASmallWorld VIDEO NETWORKS
suggests to them the 60. YouTube
-exclusive social network
companies to work on. with an annual membership
-a video sharing site that
43. Cross.tv where members enjoy he allows users to upload share,
perks of an international and view videos.
lifestyle club.
61. Youku
-China’s leading virtual video
and streaming facility, a
duplicate of YouTube and it
is available only n China.
62. FunnyorDie
-a video site that features
comic videos from well-
known actors.
63. Tout
-a micro-blogging site that
allows users to create and
send 15-second video clips.
64. Vine
-snippet video sharing site
where members can post 6-
second video clips.
REUNION NETWORKS
65. Classmates
-a social network that
connects high school friends
and classmates and the
uploads of high school’s
yearbook.
66. MyLife (formerly
Reunion.com and Wink.com) and instant message.
-serves as a tracer in finding 73. Tuenti
family members, friends,
business partners for a
certain amount.
67. MyHeritage
-keeps and shares family
history where they can
create family trees.
BUSINESS NETWORKS
LinkedIn- one of the biggest
and largest business and
employment websites where
employers post job and
member who are job hunting experts and corporation to
may apply.
68. Viadeo opportunities and web page, play games,
collaboration in the creation share videos, and meet new
-encourages business of products and services. acquaintances.
managers and entrepreneurs
to engage advertising 76. Plurk 84. StudiVZ
campaigns
-micro-blogging and social -largest social networks in
69. Ryze network that have 210 Europe features college and
characters for links or short university students.
-allows its business oriented message updates.
members to get in touch with 85. Friendster
their business contacts and 77. LiveJournal
get advices from business -is now a gaming website in
experts. -makes members put up with Malaysia, it allows members
their blogs, diaries, or to get in touch and share
70. Xing journals. content with other members
-permits closed groups to 86. Kaixin
discuss business privately.
INTERNATIONAL SOCIAL -a gaming network in China
NETWORKS that draws workers doing
white collar jobs.
PRE-TEEN, TEEN, AND 78. Mixi
YOUNG ADULT 87. 51.com
NETWORKS -famous match making social
71. WeeWorld network website in Japan -biggest social networks in
featuring member’s interest. China connecting more than
-a gaming site for teenagers 50 million members.
where they can meet new 79. Douban
88. Nexopia
friends, instant message, -Chinese website that offers
and chat-based avatars. search engines and provide -Canadian website that
feedback ratings of music, invites aged 13 and above to
72. Habbo
books, and movies. make their profiles, blogs,
-a gaming website in Finland pictures galleries, contact
that makes them select their 80. Renren (Xiaonei list, articles, and forums.
avatars, meet new friends, Network)
89. Draugiem
-Chinese internet finance
enterprise to 30 million -a networking website in
college students. Latvia that shelters start up
-started as “Spanish groups and companies.
Facebook” but through time 81. Odnoklassniki
has provided an online 90. Glocals
-people finder website
experience using their own among Russian society in -a Swiss social website
application and website. finding old friends and former intended for immigrant
classmates of 200 million groups to communicate.
users.
BLOGGING RELATED 91. Cyworld
82. NK
74. Xanga -a South Korean social
-a school based social website allowing members to
-provides photoblogs, website in Poland preferred make friendships among
weblogs, and profiles. by alumni and students in members through the use of
high school and college. avatars.
75. Solaborate
83. Netlog
-showcases technology
-Belgian website where
have easy access for teenagers make their own