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Market analysis
As with developing any strategy, it is crucial to first analyse the current situation of the place. You need to understand its strengths, potential & limitations in order to come up with a proper justification for the final public value strategic vision.
Overview of the place
The analysis phase starts with an overview of the place, which includes the following aspects:
- Uncovering the unique characteristics of the place on both abstract and practical levels (symbolic, experiential and functional):
- The symbolic level relates to the meaning of the place, in terms of common & historical knowledge, mentality and past promotional campaigns.
- The experiential level concerns experience themes related to the sports- , cultural- (e.g. jazz music) and commerce sector (e.g maritime theme).
- The functional level addresses important factual and environmental characteristics of the place. For example a coastal town situated along an historically important trading route.
- An overview of all relevant stakeholders on the supply side whose support is needed to execute the public value plan (e.g. businesses, governments, NGO’s, trade associations, cultural institutions)
- All relevant stakeholder on the demand side, meaning a description of the most important customer segments: residents, local businesses, tourists, investors. Here, depending on the goal and vision of the public value plan, a relevant selection of customers is made.
- Competitors (if any). If a place is competing with other destinations to attract certain customer groups, it could help to gain insight in their strengths and weaknesses.
- Trends in the market. These trends relate to the following spheres: economic, social, political, environmental, technological and legal (PESTEL). You’ll want to identify in time if there are trends that provide your place with opportunities, or, on the other hand, pose limitations for future development (e.g. policy restrictions).
SWOT analysis
Next, in order to make sense of all the information gathered about the place, an interpretative analysis is needed to identify and prioritize important strategic issues. Based upon the information above, what internal and external factors stand out?
- Internal factors
- What are the Strengths of the place?
- What are the Weaknesses of the place?
- External factors
- What trends are there in the market that form Opportunities for the company?
- What trends are there in the market that form Threats for the company?
In conclusion, what key positive and negative strategic issues arise when the internal and external factors interact with one another? Positive strategic issues usually are strengths that fit opportunities. Negative issues often concern strengths or weaknesses affected by threats in the market. You mostly want to build your strategy on positive issues, while adjusting for potential disruptive negative issues.
Research methods
To acquire the necessary information for the analysis phase, several research methods can be used, which complement each other:
- Study the unique characteristics of the place with the help of the internet, libraries, museums and expert interviews.
- Identify strengths and weaknesses by conducting interviews and focus group sessions with key stakeholders on both the demand and supply side.
- Spot hot topics and trends in the news, related to the place. For example, search google news, newspaper databases, social media content, and consultancy reports.
Go to step 3