Each pathway evolves into a strategy concept. The purpose is to help define strategy alternatives and possibilities. Additionally, the analysis examines market structures and brand images. Factor analysis, cluster analysis, and other multivariate statistical techniques are important parts of the analysis. Market segmentation analysis helps define worthwhile market segments and generates strategy hypotheses about how to attack these segments.
Conjoint analysis can be especially valuable in product strategy development.
Understanding competitive strengths and weaknesses is fundamental to the development of sound strategy alternatives. Based upon the qualitative work, multivariate analyses, and the judgment of senior management, a number of strategy concepts are developed. These are then tested, using standard concept-testing techniques. The winning strategy is then evolved from a simple strategy into a more involved plan, by subsequent testing of refinements and enhancements to the basic strategy, as well as mutual planning sessions with senior executives in the client company. Also, strategy has a tendency to wobble off course over time, another reason for long-term strategy monitoring.