Table of Contents
Strategic era analysis generates a time line segmented by eras corresponding to major shifts in an industry or corporate strategic paradigm. It is generally used to provide an introduction to an industry, an understanding of its development, and background facts which can be used for other strategic analyses. It can answer the question “How did a company get to where it is today?” Strategic era analysis can be useful in internal briefings, company profiles, company reports, and team meetings for establishing a common point of departure.
Methodology
- Fact finding. Compile data from sources about industry founding, product evolution, competitive structure, sales growth, key events affecting or characterizing change, key players, or key success factors.
- Define strategic paradigms. Identify the past drivers of the industry.
- Define and characterize eras. Segment the industry history into eras. Each era should have a title, dates and a common strategic theme. Begin analysis with industry founding and end with the present. List characterizing strategies, facts, events, and conditions corresponding to each era.
Notes
- Do not let specific time periods control the strategic eras
- Important to emphasize the key drivers in each era and which drivers make the era shift
- Era analysis can be performed for the corporation and/or the business unit as required
- The key determinant of a corporate or business unit era is the strategic paradigm that was dominant
Strengths
- Especially valuable in an industry going through significant change
- Provides a useful overview of the industry
- Gives a presentation of background facts and summarizes an industry’s relevant history
- Provides a clear presentation/confirmation of company’s understanding of the industry
Weaknesses
- Can be difficult to obtain the information required to construct an industry strategic era analysis
- Easy to incorrectly group eras by key events and not by changes in strategic paradigms