Tuesday, March 29, 2011
Incorporation of the 7-S Model into Market Analysis?
Introduction: The 7-S Model can help an organization to run more efficiently and perform at a higher level if all of the elements reinforce each other. The 7-S Model is comprised of the following elements: Strategy, Structure, Systems, Staffing, Skills, Style, and Shared Values. When an organization lines these elements up correctly it can put the organization at a distinct competitive advantage. Using the 7-S Model when doing an industry or market analysis could be beneficial. Relevance: While reading "A Fresh Look at Industry and Market Analysis" it became apparent that an organization may be able to complement the suggestions proposed under the "augmented model for market analysis". The augmented model for market analysis suggests that an organization should look at the following: composite competitive rivalry, complementors, customer power, supplier power, and market change. The augmented model for market analysis will help an organization understand what it is facing the market or industry as a whole. The analysis could include any number of competitors. The 7-S Model is meant to deal with organizational structure. I propose that when an organization is conducting a market analysis that they may want to pick one or two top competitors and try to determine how their business fits into the the 7-S Model. If a company can successfully understand how a high performing company aligns itself in the 7-S Model then it may be able to leverage some of those strengths in its own organization. This may be a tedious task but it could be beneficial in the long run to improving an organization's performance and surpassing current competition. Question: Do you think it is worthwhile for an organization to study how a top competitor(s) may fit their business into the 7-S Model while conducting a market analysis?