When evaluating Everlane's resources and competitive position, which question is most critical to ask first?

When assessing a company's resources and competitive position, determining how well the current strategy is working serves as the foundation for any thorough evaluation. Understanding the effectiveness of Everlane's present strategy is crucial because it directly relates to how the company is positioning itself in the market relative to its goals and competitors.

By evaluating the success of the current strategy first, one can identify strengths, weaknesses, opportunities, and threats that the company faces. This knowledge informs the decision-making process regarding resource allocation, capability enhancement, and strategic adjustments. An analysis of the existing strategy's effectiveness gives insights into whether subsequent inquiries—such as which strategic issues need attention, profitability of segments, or levels of competitive advantage—are necessary or relevant.

Focusing on the performance of the current strategy forms a benchmark that guides all other strategic evaluations and decisions. This approach is essential for leaders to understand before diving into other aspects of the company's operational effectiveness or competitive landscape.