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Calculating quantitative competitive strength ratings for each of a diversified company's business units involves Multiple Choice rating the caliber of each business's strategic and resource
Calculating quantitative competitive strength ratings for each of a diversified company's business units involves
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rating the caliber of each business's strategic and resource fit, weighting the importance of each type of strategicresource fit, calculating weighted strategicresource fit scores, and adding the weighted ratings for each business to obtain an overall strength score for each business unit that indicates whether the company has adequate strategicresource fits to be a strong market contender in each of the industries where it competes.
identifying the competitive forces facing each business, rating the strength of these competitive forces industry by industry, and then ranking each business's ability to be profitable, given the strength of the competition it faces.
determining which businesses possess good strategic fit with other businesses, identifying the portion of the value chain where this fit occurs, and evaluating the strength of the competitive advantage attached to each of the strategic fits to get an overall measure of competitive advantage potential. Businesses with the highestlowest competitive advantage potential have the mostleast competitive strength.
selecting a set of competitive strength measures, weighting the importance of each measure, rating each business on each strength measure, multiplying the strength ratings by the assigned weight to obtain a weighted rating, adding the weighted ratings for each business unit to obtain an overall competitive strength score, and using the overall competitive strength scores to evaluate the competitive strength of all the businesses, both individually and as a group.
determining each industry's key success factors, rating the ability of each business to be successful on each industry benchmark, and adding the individual ratings to obtain overall measures of each business's ability to compete successfully.
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