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Business Strategy Plan - Doc

   

Added on  2020-10-23

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Business Strategy

Table of ContentsINTRODUCTION................................................................................................................................3P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market sectorfor an organisation ..........................................................................................................................3M3 Devise appropriate strategies to improve competitive edge and market position based on the outcomes. ........................................................................................................................................4P4 Implementing theories, concept and models to interpret strategic planning for an organisation..........................................................................................................................................................5M4 Produce a strategic management plan that has tangible and tactical strategic priorities and objectives:........................................................................................................................................6CONCLUSION....................................................................................................................................7REFERENCES.....................................................................................................................................9

INTRODUCTIONBusiness strategy is a set of moves or action, that is used by business to attract morecustomer, compete successfully in market and strengthening the performance to achieveorganisational goals (Acquaah, 2013). It identify specific strategies such as strengths of the product,adjusting its prices, or acquiring another business for long duration of time. In this report, theorganisation chosen is Mark & Spencer, which is a British Multinational retailer. This report isgoing to evaluate the outcomes by analysing Porter's Five Forces and using appropriate strategies /theories to improve the competitive edge as well as market position. Further, strategic managementplan is drawn to know the tangible and tactical strategic priorities and objectives of organisation.P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market sectorfor an organisationPorter five forces model is an analytical tool that uses industry five forces to determine thelevel of competition and profitability of the business (Galbraith, 2014). When a new product orservice are being launched in the market, analyst often use porter's model to identify whetherproduct will be potentially profitable or not. Competition of an industry basically depends on fiveforces-Existing industry rivalry, threat of new entrants,Bargaining power of suppliers,Bargainingpower of buyers,Threat of new entrants. This also identifies the strength areas of the businesswhich helps to improve the weak area and to avoid mistakes. Marks and Spencer used Porter's five forces model to evaluate competitive forces and profitabilityof the organisation.Intensity of the competitive rivalry-Competition in the retail industry is very strong. M&Sfaces stiff competition from supermarkets such as Tesco, Sainsbury and from cloth retailmerchants such as Zara, John lewis. Competition has further grown in online sector whichresulted in reduced cost at in- store shopping. M&S is facing threat as these companiesprovide good products with affordable prices. M&S can tackle this stiff competition bymaking a sustainable differentiation in its products or by collaborating with the competitorsto increase the market size rather than focusing on small market.Threat of new entrants-When new business enter this market it brings innovative productsand attracts the customer. It put pressure on the M&S to provide new value added goods tothe customer. Hence, Capital investment are huge to enter the retail market. Its very difficultfor the new player to achieve cost efficiencies and economies of scale by innovating newproducts, design with good quality that M&S already have. M&S has quality productadvantage which is very hard for new entrants to break its loyal customers. Absence ofexperience of operating in this market would be a barrier to new entrants.

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