PHI INDEX©
PHI Consulting has developed a proprietary index for measuring a company’s competitive ability and how it is evolving after implementing targeted actions
What it measures
The index provides a brief overview of the results of the strategic analysis carried out by applying the Value Investing principles and measures the company’s competitive ability on a scale from 0 to 10. It also points out whether there are any competitive advantages and how effective they are
The basis for calculation
The index can be calculated by comparing the company’s ability to create value with that of other players in the competitive environment in which it operates. The company’s competitiveness is measured by looking at the current situation and future prospects and by taking into account long-term sustainability and the geographic scalability of the competitive advantages found
Strategic findings
Companies can strengthen their competitive positioning by developing strategies aimed at creating or securing competitive advantages and selecting those most relevant to each context. This can be achieved by carrying out activities such as entering new markets, introducing new products and technologies and through acquisitions, divestments or joint ventures
The stages of analysis
The process of strategic analysis and Index calculation involves three stages:
- recreating the circumstances in which the company is currently operating by consulting with the entrepreneur and his management
- analysing the elements that enhance the company’s competitive ability and preparing a document containing guidelines on how to implement them
- discussing the findings of the analysis with the entrepreneur and his management and supporting them in making subsequent decisions
Strategic analysis and PHI INDEX © calculations are effective ways in which the entrepreneur and his management can become more aware of how to do business and compete in the market