Business Strategy: Implementing Porter’s Five Force Model and Strategic Planning

Business Strategy

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
P3. Implement Porter’s Five Force Model for the analysis of competitive force in context of
the organization...........................................................................................................................1
M3. Device appropriate strategy to improve competitive edge and market position..................2
P4. Apply range of theories, concepts, models and strategic planning in organizational context
.....................................................................................................................................................2
M4. Produce a strategic management plan which has tangible and tactical strategic priorities
and objectives..............................................................................................................................3
D1. Interpret the data which applied in the environmental or competitive analysis to generate a
set of valid strategic direction......................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Business strategy is the permanent structure for the organization to increase its vision,
prioritize goals, stay competitive with its business model and optimize financial results (Aldea,
Iacob and Quartel, 2018). It specifies how to do business to accomplish the required targets. A
successful plan offers a simple guide, composed of a set of core values or guidelines outlining
the actions people will take in the market and the tasks they will pursue in order to fulfil market
wishes. Marks and Spencer (M&S) company selected for the better understanding of their work.
It is a large size British multinational retailer company and its headquarter situated in London,
England and company specializing in the selling of clothes, home goods and food items. This
report based on the several topics such as Porter’s Five Force model to identify the comparative
force and implement suitable model, theories to understand the strategic directions in context of
the organization.
MAIN BODY
P3. Implement Porter’s Five Force Model for the analysis of competitive force in context of the
organization
Threats of new entrance: Retail market has a strong entrance barrier because the capital
costs are massive to reach the market and to gain cost efficiencies and economies of scale.
Retailers such as M&S have will be very hard for a young competitor to attain. The peer’s
circumstances are different but M&S success and emphasis on performance ware will make
rivalry hard to crack faithful M&S consumers. It will also be challenging for new entrants to
balance the channel output by M&S. It will be tough to maintain competition at home, because
while M&S has the benefit of premium goods, rivals are promising discounts and a pricing bid
that lure away many of the future buyers.
Threats of substitute: M&S needs constant creativity in order to retain a solid market
image and to stay unique in order to satisfy its client base’s demands. The textile industry is
beset with replacements, copying designs is really simple and having same design elsewhere at
much cheaper cost. The supermarket industry is now under pressure from the major
supermarkets. Tesco, Sainsbury and ASDA offer a wide product selection for consumers. There
is still some differentiation in M&S store brand product line. This is predicted that the potential
concentration of M&S on the food business would deliver a strong edge over rivals.
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