What is the primary purpose of scenario planning in strategic decision-making?

Scenario planning lets leaders imagine several possible futures so they can test how different choices would play out. By building a few realistic “what if” stories, managers see how risks and opportunities might change, which helps them pick strategies that stay good no matter what happens. The process forces teams to think beyond the current situation and consider hidden assumptions. For example, a tech firm might create scenarios where a new regulation slows growth, another where a competitor releases a breakthrough product, and another where consumer habits shift, then decide which investments keep the company flexible in all cases. This foresight turns uncertainty into a manageable, strategic advantage.