This phase leverages understanding of the market and business obtained in phase one to develop a large number of options under a variety of scenarios. Options are evaluated against likely/potential market changes using ‘what if’ scenarios (e.g. new technologies; aggressive competitor pricing; new market entrants; changing customer tastes; achievability etc). Strategies that provide maximum flexibility to a business and/or restrict competitors’ manoeuvrability at low cost are proven to be long-term winners, especially in volatile market places. Against this, achievability and risk is assessed and a short list of options provided as input into Stage 3.