Strategic Analysis of Sage in the Small Business Accounting Market

This paper applies a strategic analysis framework to analyse Sage Simply Accounting. It considers business environments, current strategies, and relies on concepts such as five forces, the resource base view of the firm, and blue ocean strategy. A strategic hierarchy delineates creating and protecting profits in new and existing markets for a firm’s offensive and defensive strategy. Sage has several programs to protect profits including customer loyalty tracking and a customer focus culture. Development focuses on existing customer needs. Firms pursue different strategies in existing and new markets. Sage focuses on delivering profits above the cost of capital in existing markets. In new markets, Sage can apply concepts from blue ocean strategy to achieve superior profits. The analysis found that Sage has strong strategies to drive profitability. The lack of innovation exposes some vulnerability and there are opportunities to reshape the offer for the Hispanic market.