A situation analysis is a marketing tool that allows companies to know the current market situation where their products can be greatly affected by the factors being studied. A situation analysis helps the business determine if there are already measures needed to be applied to maintain the current market standing of their product or to create changes for a bigger market penetration.
Aside from situation analysis, there are still a lot of marketing tools that you may use to identify the company’s current market stand. It all depends on the specific item that you want to know and research on. You may view our Analysis Template samples for sample formats used in different kinds of analyses.
A situation analysis allows a company to be aware of the market trends and how their products are being perceived by the market. It gives them an idea on the next steps that they need to do to achieve their goal, especially in terms of product sales. Being aware of the situation in the marketplace gives a company better options in providing the necessary processes to get the market advantage.
As the document that defines the current state of the environment where the product is currently in, a situation analysis can help in the planning steps to be done by a specific business. The competitive position of a specific business will be analyzed, hence providing an idea of the factors that are affecting the market performance of a specific product.
Since it deals with the assessment of both internal and external factors affecting the business and its products, a situation analysis creates a strong foundation that serves as the primary structure on how a business can better understand the factors that they need to consider when creating strategies and implementing them.
Being able to utilize the use of a situation analysis will make a company know the following:
An example of a situation analysis is the SWOT Analysis, which specifically deals with knowing the strengths and weaknesses of the business or the product that it offers as well as the underlying opportunities and threats that the company need to watch out for. You may view our SWOT Analysis Template for sample formats of this kind of analysis.
It is truly important for a business to have a situation analysis as it can give the directive of the things to do and how to apply it. To make sure that your company is doing the correct decisions essential for the growth of the products being offered in the market, use a situation analysis and change the phase of the business you are currently in.