The situational diagnosis of a company is a procedure carried out to understand the scenario in which a company finds itself in the present, in order to identify the different problems that exist and their respective importance.
After identifying the problems, we proceed to analyze the factors or causes that establish them, in addition to the perspective of the organization if these problems continue. It is used to make decisions and to carry out tasks that guarantee a sustainable and healthy development of the company.
The situational diagnosis also serves to identify the needs for strengthening and opportunities for improvement to facilitate the evolution of the company. In this case, it is usually done by consulting companies.
It is a simple instrument, as well as great utility for planning and management. Its purpose is to know the current situation of the company or business, and the inconveniences that prevent its survival, growth, expansion and development.
The situational diagnosis of a company not only encompasses internal analysis but also an external analysis, because the organization is deployed in an environment that influences its operation.
How is a situational diagnosis made?
The situational diagnosis is structured in the analysis of:
- Competitive forces.
- SWOT analysis.
- Success factors.
– Analysis of competitive forces
Rivalry between competitors
It consists of knowing the level of competition within the sector. It allows comparing the competitive advantages of the company with those of emp
Substitute product threat
It refers to the potential income of companies that sell alternative products to those of the industry. It allows to state strategies to stop the entry of these companies or to be able to compete with them.
Threat of entry of new competitors
It refers to the potential income of companies that sell the same kind of product. It allows formulating strategies to reinforce entry barriers or face competitors who manage to enter.
Bargaining power of clients
It refers to the power that buyers have to obtain good commercial conditions. It allows setting strategies to attract more customers and also achieve greater loyalty.
Bargaining power of suppliers
It refers to the power that suppliers have to make fewer concessions and thus increase their prices. It allows to enunciate strategies to improve the conditions.
– SWOT analysis