Which approach is commonly used to analyze competitive positions in tactical planning?

The approach that is commonly used to analyze competitive positions in tactical planning is SWOT Analysis. This analytical tool enables organizations to assess their internal Strengths and Weaknesses, as well as external Opportunities and Threats. By identifying these factors, businesses can gain insights into their competitive position within the market.

SWOT Analysis is particularly effective in tactical planning because it helps organizations capitalize on their strengths, mitigate their weaknesses, seize opportunities in the market, and prepare for potential threats. This holistic view is essential for formulating effective strategies that can enhance competitive advantage.

In contrast, while PEST Analysis focuses on external factors like Political, Economic, Social, and Technological influences, it does not provide insights into the internal capabilities of an organization. Market Research is important for gathering information about customer needs, preferences, and industry trends but does not inherently analyze competitive positioning. Financial Forecasting helps predict future financial outcomes based on historical data but does not address competitive strengths or weaknesses directly. Therefore, SWOT Analysis is the most integrated and strategic approach to evaluating competitive positioning.