Internal Analysis

In this article we describe the Internal Analysis, often used in order to map out the internal environment of a business.

What is Internal Analysis?

Internal Analysis is a component of Situational Analysis and the strategic marketing plan. In it the organisation, marketing and financial situation are analysed. The outcome of the analysis serves as input for SWOT. Where the external part of the Situation Analysis (competition, industry, distribution and customer analysis) takes care of opportunities and threats, the strong and weak points stem from the Internal Analysis. Internal Analysis is thus of essential importance in formulating a business’s strategy.

What does an Internal Analysis consist of?

Internal Analysis usually consists of three components.

1. Organisation

Here is a description of the present strategy, organisational structure, and company structure. Describe and analyse the important strategy and objectives. Make an organigram and evaluate them. Do problems appear within the corporate culture that hamper growth? Countless factors that must be researched according to the marketer’s insight. There is no fixed “format”. Subsequently a Competence Analysis can be made. The 7 S Model can also play a role here.

2. Marketing

The present fulfilment of the marketing mix, targeting, segmentation and positioning. Describe and analyse the present fulfilment of the P’s. Relevant points can be handled according to the marketer’s insight. Are the chosen segments and positioning the correct ones? Conduct also a Portfolio Analysis (BCG-matrix, PLC: product lifecycle, MABA Analysis).

3. Financial situation

Analysis of the present financial situation in relations to rentability, liquidity and solvability indicators. Examine annual reports and annual accounts. Read more on this in the article on indicators (marketing).