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Strategic Management PDF

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Added on  2020-05-16

Strategic Management PDF

   Added on 2020-05-16

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Running head: STRATEGIC MANAGEMENTStrategic ManagementName of the StudentName of the UniversityAuthor Note
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1STRATEGIC MANAGEMENTAnswer to question 1Porter’s five forcesThe five forces model of Porter helps in analyzing the environment in which the businesswill be operating. It will help the company in taking up better strategies so that the position ofthe company can be maintained strongly in the market and avoid the wrong strategies for thefuture as well. This model helps in analyzing the rivals that are present in the market for thecompanies along with the power that is present among the suppliers (Castillod 2016). It alsohelps in analyzing the purchasing power of the customers so that the product can help in earningprofits for the company and the substitutes that are present in the market, which may affect thelife cycle of the product in the present market. The threat that is present from the entry of newcompanies in the markets are also analyzed so that it can help the company in understanding thefeasibility of the company and its products in the market for the future (Rawlinson and Wells2016). This framework helps in evaluating the strategic position of the hybrid and the electriccar production in the global automotive industry. It is as follows:-Bargaining power of suppliersThere is a growing demand of the electric vehicles, which is being taken up by most ofthe car manufactures in the recent times, which has resulted in a better opportunity for thesuppliers. These vehicles have almost the same parts as that of a conventional vehicle except forthe new changes that are done in the cell components, chargers and the battery packs. Most ofthe battery cells are imported from Asia by the outside manufacturers, as it is cheaper in
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2STRATEGIC MANAGEMENTimporting than manufacturing it from countries like Japan, China and Korea. The integration ofthe manufacturing of battery is done in a vertical manner, which has increased the power ofoutsourcing and most of the automakers are involved in making the designs along with theproduction of the batteries (Jussani et al. 2015). The companies like Renault and Tesla havebegun partnerships and joint ventures are being undertaken between Toyota and Panasonic sothat it can help in manufacturing the batteries in an efficient manner. This will help in increasingthe interdependence and the power between the companies can be shared. This has resulted increating better players in the market such as AC Propulsion, Valeo and A 123Systems who arebuilding the relationships with the powerful automakers so that it can help them in supplyingbetter level of technologies and batteries (Porter and Heppelmann 2014). Bargaining power of buyersAn average consumer of electric vehicle needs of have some of the features such as welleducated people who are living in the urban areas and mostly belongs to the upper-middle classof the society. Most of these consumers are conscious about the environment and like to beinvolved with the latest technologies that are available in the market (Colmom and Hulsmann2014). This helps in concluding that mostly the buyers who maintain a higher profile are lesssensitive towards the prices. On the contrary, one of the major concerns for the buyers is that theelectric cars come with a limited range regarding the charging of the batteries. Another majorconcern for the buyers is with respect to the value of these cars in the future. The pace at whichthe technology is growing, it makes the consumers feel that more advanced and durable batterieswill be available in the future for the cars (Porter, Cummingham and Sanz 2015). This suggests that the power of the buyers is high in the market, which can influence thestrategies of the automakers. Most of the consumers are not willing to move away from their
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