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CI Analysis Tools

for Actionable Intelligence


Dr. Ahmed Nassar
2015 / 2016

Top 5 Analysis Tools


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Dr. Ahmed Nassar

SWOT Analysis
Competitor Profile
STEEP Analysis
Porters Five Forces
SPACE Matrix

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Dr. Ahmed Nassar

CI Analysis Tools

Analysis Tool #1: SWOT Analysis

Bombardier Transportation
Company Profile on LinkedIn

Dr. Ahmed Nassar

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Analysis Tool #2: Competitor Profile


Description:
An overview of competitors past and present
activities in the industry. The profile entails
examining management, products and/or services and
financial status of competitors.
Objective:
To provide decision makers with detailed
information that can influence plans to overcome
competitors strengths and exploit weaknesses.
Dr. Ahmed Nassar

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Analysis Tool #2: Competitor Profile 2

Dr. Ahmed Nassar

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Analysis Tool #3: STEEP Analysis


Description:
An analysis framework that examines the
macroeconomic environment that a firm competes in
based on five factors: Socio-cultural, Technological,
Economic, Environmental & Political
Objective:
To prepare firms to deal with external factors that could
affect business initiatives at the present time or in the
future. When there are favorable conditions in the
environment, firms can use their expertise to benefit
from the changes to become more competitive.
Dr. Ahmed Nassar

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Analysis Tool #3: STEEP Analysis 2

Information Needed
Socio-Cultural:
Population growth rate, and age profile,
Population health, education, and social mobility,
Population employment patterns, and job market
freedom,
Media and public opinion, and
Lifestyle choices, and social attitudes.
Technological Environment:
Impact of emerging technologies,
Impact of Internet, reduction in communications
costs,
Research
& Development
activity,
and
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Dr. Ahmed
Nassar 8

Analysis Tool #3: STEEP Analysis 3


Information Needed (Contd)
Economic:

Current & projected economic growth, inflation &

interest rates,
Unemployment and labor supply,
Stage of business cycle,
Labor costs,
Levels of disposable income, and income distribution,
Impact of globalization, and
Likely changes in the economic environment

Environmental:
Sources of energy,
Raw Materials, and
CIregulations.
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Impact
Dr.Ahmed
Nassar 9of environmental

Analysis Tool #3: STEEP Analysis 4


Information Needed (Contd)
Political:
Government type and stability,
Freedom of the press, rule of law, bureaucracy &
corruption,
Regulation and de-regulation trends,
Social and employment legislations,
Tax policies, trade and tariff controls,
Environmental and consumer-protection legislations,
and
Likely changes in the political environment.

Dr. Ahmed Nassar

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CI Analysis Tools

Analysis Tool #4: Porters Five Forces Model


Description:
Created by Harvard Business School professor, Michael Porter, the
five forces analysis framework attempts to assess the level of
competition within an industry. The process is based on
examining the influences on a sector on the basis of:
1. Existing companies, 2. Potential new companies
3. Substitutes for products offered, 4. Suppliers 5. Customers.
By understanding the forces placed on the sector, decision makers
can realize the structure and dynamics of a sector.
Objective:
To provide insights into competitive environments on national and
global scales. Results from the analysis exercise can be used to
make the right strategic decision to become an industry leader.
Dr. Ahmed Nassar

CI Analysis Tools

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Analysis Tool #4: Porters Five Forces Model 2


1. Existing companies (Rivalry):
a) How many firms are active in the industry?
b) What are the fixed costs assigned to operating in the industry?
c) How do products/services differ across the industry?
2. Potential new companies (Barriers To Entry):
a) Are patented products needed to compete in the industry?
b) What are the costs associated with entering in the industry?
c) Is there a sense of brand loyalty among buyers/customers?

Dr. Ahmed Nassar

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CI Analysis Tools

Analysis Tool #4: Porters Five Forces Model 3


3. Substitutes for products offered:
a) How easy can a product /service be substituted?
b) Can a substitute product/service be offered at cheaper price?
c) What is buyers willingness to accept substitutes?
4. Suppliers:
a) How many suppliers exist for a given product in the industry?
b) What are the costs associated in switching suppliers?
c) Do suppliers produce specific materials for an unique product?
5. Customers (Bargaining power):
a) How many customers exist in the industry?
b) What is role of quality when obtaining products or services?
c) Is it easy for buyers to switch their supplier?
Dr. Ahmed Nassar

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Analysis Tool #4: Porters Five Forces Model 4

Dr. Ahmed Nassar

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Analysis Tool #5: SPACE Matrix


Description:
The Strategic Position and Action Evaluation (SPACE)
matrix is a valuable method for analyzing the
competitive position of an organization. It makes use of:
2 internal dimensions: Financial Strength (FS), and
Competitive Advantage (CA), and
2 external dimensions: Industry Strength (IS), and
Environmental Stability (ES),
The SPACE matrix determines the firms strategic posture
in the industry, which is then classified broadly as:
aggressive, competitive, conservative or defensive.
Dr. Ahmed Nassar

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CI Analysis Tools

Analysis Tool #5: SPACE Matrix 2


Objective:
The key objective of utilizing the SPACE matrix is to
identify the posture of a firm within an industry in
terms of strategic initiatives.
Information Needed:
In order to apply the SPACE matrix, researchers are
called upon to collect qualitative and quantitative
information in the form of aspects that can describe
environmental stability (ES), industry strength (IS),
competitive advantage (CA), and financial strength
(FS).
Dr. Ahmed Nassar

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Analysis Tool #5: SPACE Matrix 3


Environmental
Stability (ES)

Industry
Strength (IS)

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Technological Change
GDP Growth, Rate of Inflation
Demand Variability
Price Range of Competing Products
Barriers to Entry into Market
Competitive pressure
Price Elasticity of Demand
Growth and Profit Potential
Financial Stability
Technological Know-How
Resource Utilization
Capital Intensity
Ease of Entry into Market
Productivity or Capacity Utilization
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Analysis Tool #5: SPACE Matrix 4


Competitive
Advantage (CA)

Financial
Strength (FS)

Dr. Ahmed Nassar

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Market Share
Product Quality
Product Life Cycles
Customer Loyalty
Competitions Capacity Utilization
Companys Innovation
Vertical Integration
Return On Investment
Leverage
Liquidity
Capital Required / Available
Ease of Exit From The Market
Risk Involved In Business
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SPACE Matrix: X-Y Plane


FS
Conservative
CA

Aggressive

1
-6

Defensive

-1
-1
-6

IS

Competitive

ES

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International Organizations -- European & US Institutions

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SPACE Matrix Example

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CI Analysis Tools

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SPACE Matrix Example 2


FS

CA

IS

ES
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SPACE Matrix Example 3

This particular SPACE matrix example tells us that our


company should pursue an aggressive strategy.
Our company has a strong competitive position in the
market with rapid growth.
It needs to use its internal strengths to develop a
market penetration and market development strategy.
This can include product development, integration with
other companies, acquisition of competitors, and so on.

Dr. Ahmed Nassar

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Thank You Very Much

Dr. Ahmed Nassar

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