Space analysis on the example of a school. Methodology for using SPACE-analysis in evaluating the activities of a bar. Factors that determine the competitive advantage of a firm

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The methods of situational analysis with a certain convention can also include the SPACE-analysis method (strategic position and action estimation), designed to analyze the strategic position and evaluate the actions of the organization.

The SPACE method lies in the fact that four groups of factors are analyzed for the organization. Each factor is evaluated by experts on a scale from zero to six. The factors of the four groups are sequentially presented in table. 4.10–4.13.

Table 4.10. Stability factors ( ES)

Technological changes
Inflation rate
Demand volatility
Price range of competing products
Obstacles for market access
Competitor pressure
Price elasticity of demand	Inflexible

Table 4.11. Factors of industrial potential (IS)

Growth potential
Profit Potential
Financial stability
Technology level
Degree of resource utilization	Ineffective	Effective
capital intensity
Ease of market access
Productivity, utilization of production capacities

Table 4.12. Factors competitive advantage (CA)

Market share

small

Product quality

Product life cycle

Elementary

Finite

Product replacement cycle

Fixed

replaceable

Customer loyalty

Capacity utilization by competitors

Vertical integration

Table 4.13. Factors of financial potential ( FS)

Return on investment
financial dependence	unbalanced	Balanced
Liquidity
Required / available capital
Fund flow
Ease of leaving the market
Enterprise risk

After evaluating the value of each factor, it is necessary to calculate the average value of the factors for each group, then plot the obtained values on the coordinate axes shown in Fig. 4.14.

The implementation of this evaluation approach allows one to construct a quadrilateral of one of the types shown in Fig. 4.15, characterizing the proposed four types of strategic positions of the competitor organization, which are also presented in Table. 4.14.

This method uses an approach to the analysis of the external and internal environment, similar to that used in the SWOT analysis. Factors of the stability of the situation partially characterize the factors external environment without clear identification of opportunities and threats. Factors of competitive advantage, industrial and financial potentials are part of the analysis internal environment presented in the SWOT analysis in much greater detail.

The advantages of the SPACE-analysis method include the following.

1. Clear logic of the analysis.
2. The possibility of a purely formal, quick assessment. But this attractive side of this method can be the reason for choosing the wrong recommendations.
3. Possibility of defining enlarged strategic positions (by no means all of them).
4. Visual representation of the obtained results and recommendations for choosing directions for action.

Rice. 4.14.

In our opinion, the developers of this method significantly exaggerated its merits, stating that it can be used to determine the most advantageous strategic position for the company, as well as certain areas of its activity. And that it is a tool that helps a company evaluate the overall attractiveness of its business area, as well as the company's ability to compete in the markets.

However, the disadvantages of this method of analysis far outweigh its advantages.

1. Groups of factors are presented without justification for the selection of these particular groups of factors. Why are four and not another number of factor groups proposed? What are the principles of their selection? In these groups, both external and internal factors are "mixed".
2. The groups of factors include a far from complete list of these factors, and the inclusion of factors in separate groups is sometimes random in nature, not arising from the consistent use of any specific classification features.

Rice. 4.15.

Table 4.14. a brief description of possible strategic positions of the competitor organization

strategic position		Brief description of strategic positions
Aggressive		This position is typical of an attractive industry with little uncertainty. A competitor organization receives competitive advantages that it can maintain and increase with the help of financial potential. Threats are insignificant, it is necessary to concentrate on ensuring the achievement of the set goals. Actions are aimed at: expanding production and sales;
		active pricing policy in relation to competitors;
		development of new market segments;
		brand promotion
Competitive	This position is characteristic of an attractive industry. A competitor organization gains competitive advantage in a relatively volatile environment. Financial capacity is a critical factor. It is necessary to fend off the threats associated with the loss of funding. Basic Actions: Search financial resources;
	development of sales networks
conservative	This position is usually seen in stable markets with low growth rates. In this case, efforts are concentrated on financial stabilization. The most important factor is the competitiveness of the product. Basic actions: cost reduction while improving the quality of the product;
	reducing production and entering more promising markets
defensive	This position arises when a competitor operates in an attractive industry but lacks product and financial competitiveness. The key actions are: special attention to mechanisms for parrying threats; withdrawal from the market

For example, the group of factors called "industrial potential" includes factors of both external and internal environment, characterizing not only the magnitude of the potential (growth potential, profit potential), but also the level of its use (degree of resource use, productivity). Not all factors of "industrial potential" are taken into account. For example, there are no factors in this section human resources. It is possible to give such examples of an incorrect approach to the choice of factors for other groups of factors of this methodology. Financial stability refers to financial factors, not industrial potential factors.

3. There is a repetition of factors placed in different sections of the methodology in slightly modified formulations.

For example, the factor "barriers to access to the market" is included in the group of factors of the stability of the situation. In another wording - "ease of access to the market", a similar factor is placed in the group of factors "industrial potential". Besides, what about the industrial potential?

4. It should be noted the partial repetition of the factors placed in one section of the methodology.

For example, the factors "obstacles to market access" and "competitor pressure" are placed in the factors of stability of the situation. The last factor is one of the causes of the previous factor.

5. A far from complete list of the competitor organization's strategic positions is presented without any justification.

The number of possible combinations of values of the four groups of factors significantly exceeds the chosen four strategic positions. It would be more correct, when highlighting strategic positions, to set not a point value of individual groups of factors, but an interval value, hitting which is the basis for developing recommendations for choosing a course of action. This approach is used, for example, in a number of portfolio techniques in the matrix GE/McKinsey.

6. To evaluate even quantitative meaningful indicators, only scoring expert assessments were used.

Other logical contradictions and substantive errors of this method can also be cited. Its use appears to be disorienting for marketers. The content and practical value of this technique do not correspond to its "cosmic" name (eng. space- space). Probably for these reasons this method not covered in well-known marketing publications.

It seems that to solve the problems of assessing the position of the organization and setting goals for its development, the ideas of a balanced scorecard - BSC can be used. (balanced scorecard ), set out, for example, in the work. This system is designed to formulate the goals and strategies of a competitor organization based on an assessment of its activities on the basis of four balanced groups of quantitatively measured indicators: 1) finance (return on investment and value added); 2) relationship with customers (meeting customer needs, maintaining and expanding the customer base and market share); 3) internal business processes (quality, order fulfillment, cost, new product development) and 4) staff training and development (staff satisfaction and availability information systems). The choice of groups of indicators and the BSC indicators themselves are logically justified and well argued. It can be proposed to evaluate the level of achievement of SPP indicators using one of the measurement scales, for example, as in the SPACE analysis. Further, depending on the results of such an analysis and the capabilities of the competing organization, goals are set for each indicator and the means to achieve them are selected. This approach to goal setting can also be useful in gap analysis (see below).

In other translation options - a balanced scorecard, a balanced scorecard, a score card.

The methodology is based on the analysis of the position of the company and the conditions for its functioning along four coordinates that characterize the immediate and macroenvironment of the company, as well as its internal potential: the attractiveness of the industry, the stability of the economic environment, the competitive advantage of the company and its financial position. The assessment is usually carried out according to 6-8 most significant parameters for the company for each of the coordinates by the method of expert assessments using a special scale:

results scoring criteria by the SPACE method are presented in table 3. space matrix paretto clemar

Table 3. Results of scoring criteria

Criteria	gravity	Generalized scoring
Enterprise financial strength
ROI
Financial independence
Solvency of the enterprise
Level of financial risk
Overall evaluation of the criterion
Enterprise competitiveness
Market share
Product quality
Customer loyalty
Net profit margin on services sold
Product life cycle
Overall evaluation of the criterion
Industry attractiveness
Growth potential
Profit Potential
Technology Level
Ease of market access
Overall evaluation of the criterion
Industry stability
Level of development of innovation activity
Inflation rate
Demand volatility

Competitor pressure
Overall evaluation of the criterion

Based on the results of the constructed matrix of the strategic position and assessment of actions, it can be concluded that PKP Klemar LLC occupies a dual strategic position: “aggressive” and “conservative”.

1) Aggressive stance:

This condition is typical in an attractive industry with little uncertainty in the environment. The company receives competitive advantages that it can maintain and increase with the help of financial potential. Threats are insignificant, it is necessary to concentrate on securing interests. The mechanisms are aimed at:

· Expansion of production and sales;
· Price war with competitors;
· Development of new market sectors;
· Promotion of brands;

This condition is usually observed in stable markets with low growth rates. In this case, efforts are concentrated on financial stabilization. The most important factor is the competitiveness of the product. Main mechanisms:

· Cost reduction while improving the quality of goods;
· Reduction of production and access to more promising markets;

SPACE-analysis (SPACE (space) - Strategic Position and Action Evaluation (assessment of the strategic position and action) is one of the tools for diagnosing the position of the company in the market space and identifying strategic alternatives for its development. The methodology is based on the analysis of the position of the company and the conditions for its functioning according to four options:

1. Competitive advantages of the company

2. Financial position of the company

3. Attractiveness of the industry

4. Stability of the economic environment.

The result of the analysis should be an expert assessment of each of the specified parameters that determine the strategic position of the company, on a 6-point scale (table 7) and their graphical interpretation (Figure 1).

Table 7 - The values of the parameters that determine the strategic position of the company

Figure 1 - Coordinate system for determining the strategic position of the company

For each axis of the coordinate system, the values of the parameters (points) should be set aside. At the same time, in order to obtain an appropriate graphical interpretation, it is necessary to correct the assessments of the stability of the environment and competitive advantages by subtracting 6 points from them. For example, if the stability of the environment was rated at 5 points, then this would be reflected as (-1) on the SS axis.

Consistently connecting all the points marked on the coordinate system, we get one of the graphs shown in Figure 2 and corresponding to a certain strategic position of the company. In this case, as you can see, the arrow corresponds to the largest (by area) of the resulting triangles.

KP PO KP PO

A) Aggressive stance B) Competitive stance

KP PO KP PO

C) Conservative position D) Defensive position

Figure 2 - Strategic positions of the organization

BUT) Aggressive stance characteristic of attractive industries in a stable environment. The analyzed organization has an undoubted competitive advantage and can keep it using the available financial potential.

Critical Factor- the ability to resist the emergence of new competitors.

1 Search for takeover candidates in own and related industries;

2 Increase in market share;

3 Concentration of resources on products that provide the greatest advantage over competitors.

Firm behavior- this is the behavior of a scout, suggesting the desire to explore as much as possible more alternatives, loose, decentralized control, not always full use resources.

B) Competitive position characteristic of attractive industries in a relatively unstable environment.

Critical Factor- the ability to maintain and strengthen the financial position of the company.

1 Accumulation of additional financial resources to enhance market potential;

2 Strengthening the sales (sales) service;

3 Expansion and / or adjustment of the range of products;

4 Invest in performance improvement;

5 Cost reduction;

6 Measures to protect and maintain competitive advantage in a shrinking market;

7 Merger with a company with significant cash resources.

Firm behavior is the line of deep reaction. As a consequence, this position is strategically unstable and often leads to collapse.

IN) Conservative stance characteristic of stable, slowly growing markets.

Critical Factor- the competitiveness of the product.

1 Reducing the range;

2 Cost reduction;

3 Concentration on payment flow management;

4 Additional protection of competitive products;

5 Development of new products;

6 Attempt to penetrate more attractive markets.

Firm behavior is the behavior of the analyst. The company's policy is based on a careful analysis of the opportunities available on the market and their careful use.

G) defensive position typical for unattractive industries in which companies lack both competitive products and financial resources.

Critical Factor the overall competitiveness of the firm.

1 Withdrawal from the market;

2 Termination of the release of low-margin products;

3 Aggressive cost cutting;

4 Reducing excess production capacity;

5 Refraining from investments or minimizing them.

Firm behavior- this is the behavior of a defender: the desire to single out a narrow area of \u200b\u200bhis interests and protect it. Hence - the concentration of resources, the centralization of management.

A more accurate assessment of the company's strategic position requires studying a set of factors or indicators that characterize the company's competitive advantages and its financial position, the attractiveness of the industry and the stability of the economic environment.

1. Competitive advantage of the firm can be characterized the following indicators:

Market share- this is the relative market share, which can be measured by the ratio of sales for a certain period of time to the sales of the leading competitor of the enterprise under study.

Product quality- relative expert assessment of the quality of the product of the enterprise under study in comparison with the products of competitors.

is a concept widely used in strategic planning. In most cases, it is customary to distinguish four stages: the introduction stage (also called the embryonic stage), the growth stage, the maturity stage, and the decline stage. The stage of introducing a product to the market is characterized, first of all, by the spread among potential consumers of awareness of the existence of a new product. Differentiation during this period is small, demand is price inelastic, and economies of scale are negligible. The maturity stage is characterized by rapid growth in sales volumes. Competitors' product differentiation is increasing, economies of scale are growing, and demand is becoming more price elastic. The maturity stage is characterized by a high degree of product differentiation, pronounced market segmentation, significant economies of scale, and price elasticity of demand. The decline stage is characterized by intensification price competition, exceptionally high elasticity, continuing significant economies of scale.

In the SPACE method life cycle product, similarly to other indicators, is evaluated on a scale of 0-6, which makes it possible to more accurately assess the position in the dimension under consideration.

Product replacement cycle- a characteristic of the degree of certainty of the life of the product (the duration of its life cycle).

Consumer commitment- characterization of the degree of customer loyalty to the brand.

Use of production capacity of competitors.

Technological know-how- a characteristic of technological expertise (knowledge, experience), which is at the exclusive disposal of this company.

- vertical integration refers to the unification within one organization of the links of the same production chain. For example, a furniture manufacturer acquires a logging business (reverse vertical integration) or furniture store(direct vertical integration).

2. Financial position of the company characterized by the following indicators:

Return on invested capital (ROI) calculated as the ratio of profit to invested capital (own).

financial leverage measured by the ratio equity to borrowed funds.

Liquidity- as a meter, you can use the indicators of the current or absolute liquidity. It is worth emphasizing that the authors of the methodology proceed from the thesis that maximum liquidity.

– qualitative assessment the extent to which the firm's capital needs are met. Can be done by calculating the ratio of available capital to required.

- I mean real transfers.

Ease of exiting the market- it is understood as the amount of financial losses associated with the departure of the market and the re-profiling of the company.

Business riskiness- the assessment should take into account both market and political risk factors in the company's activities.

inventory turnover- one of the possible additional factors in assessing the company's performance.

3. Parameters of the industry (factors that determine its attractiveness) The following are used in the SPACE technique.

Growth potential- is associated with an assessment of the total market capacity and the availability of appropriate production resources.

Potential Profitability- an estimate of the rate of return that can develop in the industry.

Financial stability- we mean the conditions for the functioning of the average, typical enterprise this industry.

Technological know-how- a qualitative characteristic of the level of technological expertise required to work in the industry.

Resource usage- assessment of the efficiency of resource use at the enterprises of the industry (in comparison with other industries).

Capital intensity.

Ease of entering the market- a qualitative assessment of the factor, taking into account the whole complex of actions. Which must be undertaken to enter the market: the implementation of one-time capital expenditures, the creation of an image, etc.

performance, capacity utilization.

4. Factors determining the stability of the environment, the following:

Technological changes– a qualitative assessment of the multiplicity of ongoing technological innovations.

The rate of inflation.

Demand variation- a characteristic of the stability of demand.

– important characteristic the degree of market maturity and the level of price competition.

Barriers (restrictions) to market entry– necessary licenses, qualification requirements, exclusive rights already granted to other firms, etc.

Competitor pressure – general characteristics the level of competition in the industry.

Price elasticity of demand– statistically assessed degree of influence of price changes on demand.

Each factor is also evaluated on a 6-point scale, for which the table below is used (Table 8).

Table 8 - The values of factors that determine competitive advantages, the financial position of the company, the attractiveness of the industry and the stability of the environment

Table 8 continued

Literature

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Work

By discipline:

"Organization and management of the enterprise"

"SPACE-analysis"

Moscow, 2011

1. SPACE-butnaliz

Directly from the SWOT-analysis follows another method of constructive analysis - SPACE-analysis. It is based on the assertion that the financial strength of an enterprise is FS (" forte”, according to the component - “finance”) and the competitiveness of products - KP (“strength”, according to the component - “products”) are the main factors determining the strategic position of the enterprise, while the advantages of the industry - software and market stability - SR are characteristics, important to the industry as a whole.

In SPACE-analysis, these factors are depicted in the form of graphs with coordinate division of the scale from -6 to +6. All factors have two types of characteristics: significance (V) and probability (P) of action. At the same time, two factors are determined that the enterprise uses to the greatest extent and which relate it to a certain qualifying group(positions).

An aggressive stance is typical of an active and stable industry in which the enterprise has certain advantages. Critical is the emergence of new competitors. The position allows you to actively respond to changes in the market situation, increase your market share, increase the competitiveness of products: 1) financially strong enterprise with a competitive product in a stable and growing market; 2) a financially strong enterprise in which financial and economic advantages play a significant role.

Competitive position is typical for active but relatively unstable industries and markets in which the company's products have a competitive advantage. The financial potential of an enterprise is critical: 1) an enterprise with competitive products in a growing market; 2) an enterprise with competitive products in an unstable market.

A conservative position is most often characteristic of a stable industry. Such enterprises have a certain financial potential, however, the competitive characteristics of products are critical. The main tasks of such enterprises should be the search for new markets, the preservation of product advantages, the development of new types of products, the reduction of unproductive costs and the activation of money circulation: 1) an enterprise with competitive products in a stable market; 2) an enterprise with products that temporarily have no competitors.

The defensive position is typical for economically unattractive activities in which competitive advantages do not create economic ones, or the absence of competition is due to the outflow of capital to economically more profitable industries. Almost all factors are critical, with the exception of the competitive position of products. An enterprise can continue the tactics of “surviving” an unfavorable period (which, as a rule, does not bring success) or reorient itself to other activities, reduce production capacity, restructure production and financial resources, limit investments: 1) an enterprise with low competitiveness of products, negative growth in a stable industry; 2) an enterprise with a good financial position in an unstable and inefficient industry.

2. SPACE method

Analysis of the strategic position and evaluation of the company's actions

The strategist must be able to assess the most advantageous strategic position of the company, the attractiveness of its business area, the ability to compete in the markets. The business of an organization is a key mechanism for ensuring the interests of the subjects of this organization. Therefore, assessing a business as unattractive may entail a change in interests. When choosing mechanisms for ensuring interests and parrying threats, it is also necessary to correlate them with the position of the organization.

The main method of such assessments is the matrix of strategic position and assessment of actions (SPACE).

The SPACE method consists in the fact that four groups of factors are evaluated for the enterprise. Each factor is evaluated by experts on a scale from 0 to 6.

Environment stability factors (ES)

Technological changes
Inflation rate
Demand volatility
Price range of competing products
Barriers to Market Access
Competitor pressure
Price elasticity of demand	inflexible

Industrial Potential Factors (IS)

Growth potential
Profit Potential
Financial stability
Technology level
Degree of resource utilization	inefficient	effective
capital intensity
Ease of market access
Productivity, utilization of production capacities

Factors of Competitive Advantage (CA)

Market share		small
Product quality
Product life cycle	elementary	finite
Product replacement cycle	fixed	replaceable
Customer loyalty
Capacity utilization by competitors
Vertical integration

Financial Strength Factors (FS)

Return on investment
financial dependence	unbalanced	balanced
Liquidity	unbalanced	balanced
Required / available capital
Fund flow
Ease of leaving the market
Enterprise risk

After evaluating the value of each factor, it is necessary to calculate the average value of the factors within each of the groups, and then plot the obtained values on the coordinate axes shown in Fig. one.

Rice. 1. Strategic position and action evaluation matrix

The result is a quadrilateral of one of the types shown in Fig. 2.

Rice. 2. Graphical representation of various strategic states

strategic matrix company competitive

If the side in the FS - IS quadrant is the farthest from the center of coordinates, then the company is in an aggressive strategic state. If the side in the IS - ES quadrant is as far away as possible, then the company is in a competitive strategic state. If the side in the CA - FS quadrant is as far as possible, then the company is in a conservative strategic state. If the side in the CA - ES quadrant is as far away as possible, then the company is in a defensive strategic state.

Depending on the strategic state, the following groups of strategy mechanisms are the most appropriate:

Aggressive	This condition is typical in an attractive industry with little uncertainty in the environment. The company receives competitive advantages that it can maintain and increase with the help of financial potential. Threats are insignificant, it is necessary to concentrate on securing interests. The mechanisms are aimed at: · Expansion of production and sales; · Price war with competitors; · Development of new market sectors; · Promotion of brands.
Competitive	This state is characteristic of an attractive industry. An organization gains competitive advantage in a relatively volatile environment. Financial capacity is a critical factor. It is necessary to fend off the threats associated with the loss of funding. Main mechanisms: · Search for financial resources; · Development of marketing networks.
conservative	This condition is usually observed in stable markets with low growth rates. In this case, efforts are concentrated on financial stabilization. The most important factor is the competitiveness of the product. Main mechanisms: · Cost reduction while improving the quality of goods; · Reduction of production and access to more promising markets.
defensive	This condition occurs when an organization operates in an attractive industry but lacks product and financial competitiveness. The key strategy is: · Special attention mechanisms for parrying threats; · Withdrawal from the market.

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