The situation analysis is the first step in developing a marketing strategy. A situation analysis is a gathering of data that details the current state of an organization and its environment. Much like planning a trip, the situation analysis identifies the starting point and the conditions that exist at the beginning of the trip. For a trip it is important to know the mode of transportation, the condition of the infrastructure along which the transportation moves, the amount of fuel and other resources available, and so on.
For organizations developing a marketing strategy, the situation analysis begins with the industry, the market, and the competition.