Corporate Strategies on Marketing - External and Internal Analysis

An effective corporate strategy on marketing requires that the business conduct both external and internal analysis of the company and its products.

External Analysis (Porter’s Five Forces Theory)

Porter’s Five Forces Theory

Porter’s Five Forces demands that businesses should consider the possible factors that influence the course of the business, in this instance, wine exporting business. The five forces (QuickMBA, 2004) include: customer power, supplier power, competition from new entrants, competition from substitute products and intensity of the competition.

Other factors needed for the company to become competitive in the market involve a careful study and implementation of the following:

Internal analysis

Identify Strengths and Opportunities

The external analysis requires the limits and opportunities brought about by the company’s environment. The internal analysis demands that the organization pays attention to its strengths and weaknesses.

Part of knowing the company’s strengths and weaknesses is scrutinizing each aspect of company’s operations without being overly critical or too lenient. Honest self-assessment is the key to proper identification of strengths and weaknesses without getting too emotional about it.

The most valuable way to do an internal analysis is to carry out an “audit” of operations. The result of the evaluation produces a structure of the company that can be compared to a similar organization. However, no two establishments can be the same so it is important to focus on the similar stages of growth they undergo.

Perhaps one common denominator found in widely successful companies such as Microsoft, Dell, Coca cola, Intel, Unilever, Proctor and Gamble, Mini / BMW and Gillette is its ability to identify the Strengths and Weaknesses in their existing marketing strategies, Opportunities and Threats, and issues which requires to be deal with.  Their ability to see a challenge and respond accordingly in a prompt manner is what put them at the helm.