The SAF framework strategy ensures the application of a strategy determination for your organization. You weigh the options from the confrontation on the basis of criteria of the SAF framework strategy. To choose a competitive strategy from this position that you can use for your organization.
Do I need the SAF framework?
You need the SAF framework strategy when you have confronted the market with the organization. Your organization is willing to change and would like to apply new developments. As an organization you want to see which threats are coming and how you can protect against them.
Which variables do I need for the model?
The assessment takes place along three groups of criteria before a marketingmix can be determined.
- Suitability (the degree of suitability)
- Feasibility (the degree of feasibility)
- Acceptability (the degree of acceptability)
After determining your strategy you will have to deal with four different development strategies / company strategies.
- Ansoff’s growth strategies / diversification strategies;
- Core: growing on your own
- Stability strategies with an offensive character / attack strategies;
- Core: growing through horizontal forms of cooperation
- Defensive stability strategies / defense strategies / integration strategies;
- Core: growing through vertical integration
- Contraction strategies / remediation strategies / exit strategies;
- Core: withdraw.
How can I apply the SAF framework strategy?
Before you can start the SAF framework, you know the strengths, weaknesses, opportunities and threats of your organization and you have noted it in the confrontation matrix.
You write down the results of your research and you make a numbering of your choices based on your SWOT analysis. This means that number 1 is the strongest skill, etc.
From this position you confront the market with the organization. Based on my confrontation matrix tool that you can use in the marketing model environment .
This is an example that you can fill in yourself to build your marketing strategy. Make this before you can start the SAF framework.
In the confrontation matrix you see 4 different colors:
- Green: positive ++
- Light green: light positive +
- White: neutral | 0
- Orange: slightly negative –
- Red: negative | – / –
You can work with numbers or with pluses and minuses, it is about what works best for you. To arrive at options, you confront the market with the organization. You assess the four quadrants together.
How do you confront the market with the organization?
You confront strength 1 with chance 1, strength 2 with chance 1, strength 3 with chance 1, etc.
- Strengths – Opportunities: Are the strengths of the organization used to respond to market opportunities?
- Strengths – Threats: Are strengths being used to ward off threats from the market?
- Weaknesses – Opportunities: Are the weaknesses of the organization strengthened to respond to market opportunities?
- Weaknesses – Threats: Are the weaknesses strengthened to resist the threats in the market?
After entering the numbers or pluses and minuses, you get an overview of most of the red spots and green spots that lead to interesting options. You choose 3/4 interesting developments that can answer your problem / central question.
On the basis of the SAF framework strategy, it is calculated which option is the best choice for the organization. With the questions below you assess per option which is the most suitable, feasible and acceptable.
Fitness analysis Suitability
- Are weaknesses / threats overcome?
- Are strengths / opportunities exploited?
- Does the strategy match the objectives and values of the company?
Feasibility analysis Feasibility
- Can the strategy be financed?
- Is the company able to perform at the required level?
- The required skills can be acquired
- Is the required technology available?
- Can the required product / means of production be obtained?
- Can the necessary market position be reached within time?
- Can possible competitive actions be tackled?
Acceptability analysis Acceptability
- Profitability to be realized
- Financial risks
- Influence on the capital structure (ratio analysis – break even analysis )
- Relationship with corporate / corporate culture
- Changes in job performance in departments
- Connection to systems and procedures
- Relationship with interest groups , influence on environment
What can I get out of the model?
Ultimately, thanks to the SAF framework, you have a ‘ winner ‘ / the one who is the most suitable, feasible and acceptable for your organization.
Applying marketing strategy
On the basis of the development strategies you choose a business strategy / marketing strategy. The options of the SAF framework in the example arise from a growth strategy, defense strategy and exit strategy.
Types of growth strategies for your organization
In a growth strategy you need the variables of the Ansoff model.
- Market penetration: The goal of market penetration is to increase the current market share.
- Market development: The aim of market development is to sell the current product extra through new markets.
- Product development: The goal is to introduce new products to replace the old current products.
- Diversification: The goal is to launch new products in new markets replacing current successful products.
Types of defense strategies for your organization
Grow through vertical integration
- Integration strategies
- Backward: scale
- Forward: Power seizure
- Approach buyers directly
- Own distribution channel
Types of exit strategies for your organization
- Tactical contraction, repelling unprofitable PMC
Types of attack strategies for your organization
- Growing through horizontal partnerships
Competitive strategy in combination with the SAF framework?
In this competitive approach , a frontal attack is expected to be used. In the example, option 1 was chosen because:
- the organization wants to enter a new market with its current products;
- the organization can capture market share;
- the organization can improve its position in the market.
This way you have covered all steps thanks to the SAF framework strategy.