Strategic analysis tools application at small & medium-sized enterprises in Ecuador

Abstract

Abstract: This article explores the nature and scope of Strategic Analysis Tools (SAT) application in SMEs (Small and medium-sized Enterprises) located in emerging countries such as Ecuador (where there are no formal studies on the subject). It is intended to assess which of them may contribute to formulate strategic options and create awareness of relevant risks or distress specifically about continuity concerning their operations. Through the application of a survey to an intentional sample-selection of SMEs in Quito-Ecuador, we analyzed the consciousness about these instruments to facilitate the creation of strategic options, their contribution to assess their competitive position and their interaction with the improvement of other capabilities to let them possibly achieve superior performance. Our conclusion is that SMEs can take advantage of exploiting SAT by systematically considering relevant variables in order to assess their current and future possibilities to outperform competition. On the other hand, the identification of which strategic factors these firms should pursue and its constant monitoring can help building sustainable advantages. Cultural barriers and unconsciousness of their benefits may explain their low usage rates. This is a qualitative investigation and the research design is transversal but not experimental