ABSTRACT

The strategic analysis of a corporation is explained through two basic approaches: The contemporary and the conventional approach. Different steps, procedures and classifications are provided to explain concepts such as buyer value, creating competitive advantage, identifying differences among corporations and defining business units. The correlation of strategic business units is particularly explored through seven steps, accompanied by respective charts and figures. Each of the three constructs of strategic corporation analysis (value chain analysis, strategic activities analysis and the analysis of the competitors from the corporation perspective) is defined and thoroughly explained. Porter's arguments are reinforced by figures from other prominent authors. Both overall low costs and differentiation, recognised as two main sources of competitive advantage, are defined and explored in detail. The manner of creation and drivers for both sources are listed and discussed.