How do you align industry analysis with your corporate strategy?

1 Know your industry

The first step is to identify and define your industry, which is the group of businesses that offer similar products or services to the same customers. You can use frameworks such as Porter's Five Forces or PESTEL to analyze the industry structure, dynamics, and trends. You should also research your competitors, customers, suppliers, and potential entrants to gain insights into their strengths, weaknesses, opportunities, and threats.

2 Know your position

The next step is to assess your position within your industry, which is the relative advantage or disadvantage that you have compared to your rivals. You can use tools such as SWOT analysis or value chain analysis to evaluate your internal resources, capabilities, and activities. You should also identify your core competencies, which are the unique skills or assets that give you a competitive edge and create value for your customers.

3 Know your direction

The final step is to determine your direction, which is the vision, mission, and objectives that you want to achieve in your industry. You can use frameworks such as SMART goals or OKRs to set specific, measurable, achievable, relevant, and time-bound targets. You should also formulate your generic strategy, which is the overall approach that you will use to gain and sustain a competitive advantage in your industry. You can choose from strategies such as cost leadership, differentiation, or focus.

4 Align your analysis and strategy

Once you have completed these steps, you can align your industry analysis with your corporate strategy by using them to inform and support each other. For example, you can use your industry analysis to identify gaps, opportunities, or threats in your market and adjust your strategy accordingly. You can also use your corporate strategy to guide your industry analysis and focus on the most relevant and impactful factors. The key is to ensure that your analysis and strategy are consistent, coherent, and complementary.

5 Monitor and update your alignment

Finally, you should not treat your industry analysis and corporate strategy as static or fixed documents. Instead, you should monitor and update them regularly to reflect the changes and uncertainties in your environment. You can use tools such as scenario planning or balanced scorecard to track your progress, performance, and feedback. You should also be flexible and agile enough to adapt your analysis and strategy to new situations and challenges.

6 Benefit from alignment

By aligning your industry analysis with your corporate strategy, you can benefit from a deeper and broader understanding of your market and your business. You can also improve your decision-making, execution, and communication skills. Ultimately, you can enhance your competitive advantage and achieve your goals more effectively and efficiently.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?