Strategic Marketing: Planning and Control, Third Edition

■ Introduction

So far in Part 1 the external environment, the market and the customer
have been analysed. However before an organisation can begin to review its
strategic options it has to evaluate the enterprise’s relative ability to com-
pete and satisfy customer needs in attractive market areas. The organisa-
tion’s current and potential capabilities have to be identified and this can be
achieved by evaluating the assets and competencies that make up the com-
pany’s resources. Once this has been undertaken an organisation can begin
to develop a competitive position that matches organisational capabilities
to the needs of consumers in market sectors identified as attractive (see
Figure 5.1). This approach builds on two sources of literature, a resource-
based view of the firm and market orientation. A resource-based view of the
firm emphases the need for an organisation to exploit its distinctive capabil-
ities whereas market orientation emphasises the need to be responsive to
market needs.

The internal analysis of an organisation’s resources is the final stage of the auditing process. It

creates the information and analysis necessary for an organisation to identify the key assets

and competencies upon which a strategic position can be built. The chapter explores the

nature of organisational assets, competencies and capabilities. The auditing process used to

identify these assets and competencies include the elements of an innovation audit. The use of

various auditing tools to facilitate this process, in particular the portfolio models and the

SWOT analysis, are also covered.

About this chapter

Market needs

Organisational capabilities

Competitive positioning

Figure 5.1

Matching

organisational

capabilities to

market needs

through competitive

positioning