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Conceptual Frameworks for Strategy Implementation - PDF

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Added on  2021-06-14

Conceptual Frameworks for Strategy Implementation - PDF

   Added on 2021-06-14

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Running Head: Competitive strategy Competitive Strategy
Conceptual Frameworks for Strategy Implementation - PDF_1
Competitive Strategy Introduction Development tools give focus on various tools like SWOT Analysis, PESTLE Analysis and Porter five force models. If these are considered by the company to conduct the routine activities then it can be easy to achieve profits and growth in an effective manner. In this external and internal factors are also taken into consideration which helps to manage the overall activities. This tool helps to evaluate the overall activities and enhance the growth of the company. Porter Five force AnalysisThis analysis is helpful for the organization as it is seen that if the proper focus is given to these activities then it can be easy to achieve success in the market. It has a connection with the external environment of the company. There are five components in this framework threat of entrants, a power of suppliers, a power of buyers, and rivalry against the competitors and threat of substitute.It can be evaluated that first factor is threats of entrants in which the focus is given on the small business which are entering the market. In this factor, if there are more new entries in the market then it can be a disadvantage for the company. Cost is also one of the factors which are evaluated at the time of establishing the business (Sohel, Rahman, and Uddin, 2014). One of the factors of five force model is a power of suppliers in which the ratio is analyzed of the present suppliers who are offering the services and products to the company. Next factor isrelated to the bargaining power of the buyers in which proper focus is given on the purchasing power of the customers and also the power is evaluated in an effective manner. It is seen that in the present scenario the customers have many choices to purchase the products. Rivalry against the competitors is also that factor which gives emphasis on the rivalry in the market (Madureira, 2014). The last factor in this framework is a threat of substitutes in which products are analyzed which are available in the market and substitute the product of the company. This offers a chanceto the customers to purchase the products with many choices. If the customers substitute the 1
Conceptual Frameworks for Strategy Implementation - PDF_2
Competitive Strategy company's product with any other then it can give negative impact on the overall profitability of the company. Substitution rate should be reduced so that growth can be achieved in the market (Salavou, 2015). Tesco is one of the best examples of this framework The threat of new entrants It is seen that threats of new entrants of high as there are small businesses that are entering the market. It gives negative impact on the overall activities conducted by Tesco and also the profits are affected by the entry of the new business.Power of Buyers It is low as there are many competitors who are selling the same type of products at low price. Power of Suppliers It is high as there are many substitutes for the customers which help to enhance the satisfaction level of the customers and also the competitors are selling same products in the market.Threat of substitutes It is also high as there are many companies who give the same type of products to the customers and also customers purchase from the outlets. The customers have the choice to choose best products among best one. SWOT ANALYSIS FRAMEWORK This is one of the best tools to identify strength, weakness, opportunities, and threats of thecompany. In this framework, the focus is given on the internal analysis of the company. It is seenthat emphasis is given by the top management of the company so that strategies can be implemented accordingly (Ruizalba and Soares, 2016). 2
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