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 respective field and it has -allows 200 million users to information, content, and
SOCIAL MEDIA SITES more than 350 million shoot videos pictures insert a experiences to each other
followers. text, and drawings then
1. Facebook transmit 21. Telegram
7. Skype
-world’s biggest social These file(s) to a list of -focuses on instant
network with more than 1.4 -permits 300 million active contacts. messaging, privacy, and
billion members. Facebook users to call, video call, and multi-platform to over 50
users can make personal instant messaging. 15. Line million users and it’s nice
profile to post messages, because of its features such
pictures, and videos. Also, 8. Google+ -social network messaging as ability to send hidden,
they can use their that permits 200 million encrypted, and self-
-has over 300 million users to send and receive
messengers for video calls subscribers with Hangouts, a texts, images, audio, and destructing messages of
and chats. video conferencing videos and photographs.
video files.
2. QQ highlights. 22. Tagged
16. Sina Weibo
-launched in China with 800 9. Instagram -social discovery website
million subscribers with six -popular site in China with with 300 million members.
-provides photo and video over 150 million users,
languages (English, sharing to over 300 million
Japanese, Spanish, German, members. another microblogging social 23. Myspace
French, and Korean). It network.
-it’s a social networking site
offers virtual money the “Q 10. Baidu Tieba (under the 17. VK (VKontakte) that is dedicated to have an
coin” for commercial brand name Postbar) interactive, link of
transactions. -similar to Facebook, and is acquaintances, private
-engages in search engines among the largest Russian
3. WhatsApp to link continuing accounts profiles, blogs, music,
social network with over 100 pictures as well as videos
for a particular theme to over million users
-acquired by Facebook in 300 million members. among 200 million members.
2014 but in a separate entity 18. Reddit
with over 700 million 11. Twitter 24. Badoo
members and it offers instant -a social news and media -an online dating social site
messaging. -an online news at the same aggregation as a web
time a social network that hat is participated in almost
content and discussion 200 countries with 20 million
4. QZone allows more than 300 million where over 100 million
users to post 140-character users.
-operated in China with 600 messages known as tweets. members can text or post
million subscribers. Owned direct links. 25. StumbleUpon
by Tecent that markets 12. Viber 19. YY -a browser toolbar
accessories where users recommends its 10 million
customize features in their -provides free phone calls -famous social network in
and text messages to over active members to web
websites. China hat provides group content and allows them to
250 million members. video hats allowing users to
5. WeChat rate web pages, photos,
13. Tumblr watch an individual lecturing videos in tune of their
--has almost 500 million or performing with an interests and tastes.
users and specializes in -a microblogging site that estimate of 100 million
mobile application with text permits over 200 million members where they can 26. Foursquare
messaging and voice calls. users to post text, images, convert virtual money to real
videos, quotes, link, and currency. -a local search and discovery
6. LinkedIn audio clips to their service that assists mobile
tumbleblogs. 20. Taringa! users to the places they want
-a gateway for recruiting to go.
workers and selecting the 14. Snapchat -makes 75 million members
best candidate in their in Latin America that shares
27. Meetme (formerly -a online website that -a social network where 500, 53. Nextdoor
Yearbook) partitions artworks into 000 Christian members
photography, digital, and watch television programs -a site for neighbors in the
-a social network intended traditional art, film making, based from the Bible. US that allows members o
for making new friends to literature, and other genres connect with the person next
chat. of art. 44. Flixster door.

28. Meetup 36. Fotolog -an American movie website

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