Market-Oriented Perspective of Strategic Management: The Industry Structure Analysis

The industry structure analysis according to Michael Porter focuses the strategy process primarily on the position of companies in their respective industry. The aim of the industry structure analysis is to fully exploit the core competencies of your own organization and, as a result, to achieve competitive advantages and above-average returns. As part of the analysis, future competitive activities and structural changes within the industry are anticipated and taken into account in one’s own strategic behavior.  

Search for the potential for success

A company’s strategies are based on resources, skills, and competencies and include the corporate environment in the planning. Strategies should help to identify the potential for success.

However, the potential for success only becomes effective when it is possible to mobilize it. Help with

  1. Action plans that are created on the basis of the strategic planning,
  2. And clever and technically clean management of any necessary change processes “change management“.

If a strategy management consultancy manages to exploit customers’ potential for success, it can achieve competitive advantages and thus achieve its long-term goals.

Strategy is never “finished”

This process of target achievement can be understood as an iterative process in which learning experiences that are made along the way are systematically evaluated and integrated into the current or next process (learning organization).

In this sense, after the strategy process is before the next strategy cycle – because strategies and their implementation have to be adapted regularly. The shorter these optimization and adjustment cycles, the more likely one speaks of an “agile approach” or “agile strategy approach”.

Strategy work is made to measure

We tailor strategy procedures to our needs based on the market environment, company model, value chain, and corporate culture. Ask us in a free initial consultation about a suitable procedure for your company or your organization!

Stumbling blocks in the strategy process

A comprehensive, interactive communication approach that incorporates the stakeholder groups engaged as early as possible is an important critical aspect in the execution of initiatives. Current research results identify the following reasons for a lack of agreement with a corporate strategy:

  1. Employees get the impression that the strategy cannot be reconciled with their own goals 
  2. Employees feel that they cannot support a new strategy with their own skills 
  3. Employees believe that the strategy will fail even if their own contribution to it is successful 
  4. When employees perceive the strategy as a short-term fashion topic that will soon be replaced by another.
Management tips

The following control questions can help to make the strategy process as successful as possible:

  1. Was the strategy developed together with the employees in a participatory process? 
  2. Does the organizational culture fit the strategy or are there contradictions between the structure and process organization and the strategy? 
  3. Were possible conflicts of interest and goals discussed and dealt with at an early stage? 
  4. Does the intended path to implementation of the strategy fit the culture of the organization? For example, in a very entrepreneurial culture, a centralized approach might be difficult to enforce. 
  5. Is the implementation process adequately accompanied, e.g. through adequate communication arenas, coaching, large group events, or participatory dialogue processes? 
  6. Are the results of the implementation regularly objectively assessed and conclusions drawn from them? Is there implementation monitoring?

Good strategy implementation, therefore, begins well before the actual implementation with a participative process of strategy development and a realistic, fact-based planning phase in which possible conflicts of interest and resource bottlenecks should be addressed early.