DETERMINATION OF STRATEGIC POSITION OF

ENTERPRISE IN THE PERIOD OF CRISIS AND

OPPORTUNITIES FOR THE SURVIVAL ON THE MARKET

Nemanja Berber MA
Research Associate
Higher School of Professional Business Studies
Novi Sad, Republic of Serbia

ABSTRACT

Economic crisis has undermined confidence to monetary economy and has uncontrolled
spread all over the world economy, causing problems in the business of domestic
companies. Innovation and management of the change are becoming the main ways for
survival in the market. Uncertainty and high risk are business condition which demand more
careful and serious analysis of processes and position on market. Management is forced to
look out for new, better and more successful solution in domain of business policies and
strategies. Old and conventional approach to positioning of the enterprise on the market can
make great problems for those enterprises which want to grow, develop and survive. Today
only detailed strategic analysis is acceptable way for determination of position and
possibilities for enterprises. In this paper it has been conducted the analysis of strategic
positioning of one domestic enterprise from Serbia, from candy industry, according to SPACE
and TOWS matrix. The Space matrix analysis is most often employed during professional
market analysis of a firm. It focuses on four factors which are financial strength (FS),
competitive advantage (CA), environmental stability (ES), and industry strength (IS). Data
used in this analysis are taken from industry, market, and enterprise involved. After
determination of all four factors, it has been made space graph which showed which the
position of enterprise on the market is. In relation to space matrix, very often is used TOWS
matrix. TOWS analysis is a variant of the classic business tool, SWOT analysis. TOWS and
SWOT are acronyms for different arrangements of the words Strengths, Weaknesses,
Opportunities and Threats. By analyzing the external environment (threats and opportunities),
and internal environment (weaknesses and strengths), these techniques can be use to think
about the strategy of whole organization, a department or a team. It can also be use to think
about a process, a marketing campaign, or even own skills and experience of managers and
employees.
In the paper there has been made strategic analysis separated in three parts. First part includes
SPACE matrix analysis and making of strategic position for certain enterprise through four
calculated factor (FS, CA, ES, IS). This part of analysis is based on data taken from enterprise
(about its financial power and advantages) and from market and statistical office of Serbia
(about environment and industry). Second part of analysis is consist of TOWS matrix analysis
and results are given through defining internal and external factors (SO, ST, WO, WT). Here
data were taken from enterprise and other direct competitors from market. Third part of
analysis is made as summary of first two elements of total analysis. Here it has been given
few possibilities for survival of the enterprise in crisis business conditions that are present and
serious.

Main goal of this research, as the enterprise in paper has many organizational, financial and
operative problems, was to find out adequate solutions for further survival and opportunities
by using strategic SPACE and TOWS matrix analysis. Namely, strategic position has been
changed when elements of crisis were transferred in Serbia economy, so it was important to
determine new position and make new business strategy as a response to worsened business
conditions. After collection of the data for SPACE analysis on the market and from the
enterprise, on the graph it has been given strategic position (defensive), and on the basic of
TOWS analysis author made few suggestions for further business of the enterprise.