Business Problem-Solving and Strategy

2OT Analysis

OT Analysis: Three Core Elements

The goal of OT analysis is to identify the key points in strategy building, namely opportunities for growth and possible threats. Keep these three core elements in mind when proceeding with OT analysis (Diagram 2-4). First, visualize the market and the consumers. You need to visualize it through a realistic analysis of the current market as well as objective and logical analysis backed up by quantitative data.

Secondly, get a grasp of the current industry structure. You can utilize the Five Forces analysis to look into the structure, and then sort out various viewpoints on the flow of products, money, and service (such as the value chain, distribution, and manufacturing process). Segmenting the market size, the positioning of your company as well, as the competitors (by region, product types, price range, channels, etc.) can also provide you with valuable insights.

Lastly, you must understand that the industry structure could change at any time, now or in the near future, which will present you with business opportunities and risk factors. Among these are the increase of income level, lifestyle changes, shifts in consumers’ choice of place and way of purchase, competitors entering or exiting the market, market structure turning exclusive due to M&As, change in market players due to globalization, reduced regulations, improved infrastructures ...