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Development Tools Assignment PDF

   

Added on  2021-06-15

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Running Head: Development Tools Competitive strategy

Development Tools Introduction It can be evaluated that there are many strategies that should be considered by the company so that activities can be conducted in a proper manner. These are the tools Porter five force analyses, SWOT analysis, and PESTLE that helps the company to survive in the market in a proper manner. It is seen that these tools help the company to conduct the activities in a right direction and also consider proper analysis related to internal and external factors. These tools suggest the company to focus on the strategies which are effective. Five force analysis It can be analyzed that this framework is considered by the top management so that directions can be given in a proper manner (E. Dobbs, 2014). Through this tool the company can analyze the external environment in a proper way. There are five elements in this model like a threat of entrants, a power of suppliers, a power of buyers, and rivalry against the competitors and threat of substituteThe first factor is concerned with the threats of entrants in which proper valuation is doneby the new entry which takes place in the market. In this factor, it is seen that focus is given to the cost which takes place when the business is established. Next factor is concerned with the supplier's power that how many suppliers are present in the market (Porter and Kramer, 2018). It can be evaluated that when there are few suppliers then the increase in demand takes place and when there are more suppliers then demand reduces. The third-factor analysis is related to buyer's power in which it is seen that how much products are purchased by the customers and also their power is analyzed in a proper manner (Johnson, 2016). Fourth is related with the rivalry against the competitors and in this evaluation is made by taking into consideration the competitors who are present in the market. It is seen that if there are more competitors then it can be a threat to the company. The last force is related to the threat of substitute available in the market and it is seen that if substitution of the product is done effectively then it can give negative impact on the overall activities and can also hinder at the time of attaining goals and objectives of the company1

Development Tools (Hjaila et al., 2017). So, it is important for the company to focus on reducing the substitution as negative impact can be seen in the overall profits. Practical Example is of TescoThreat of entrants There are many threats to new entry which take place in the market. If the focus is given on Tesco it is seen that the threat is high as there are many companies who are entering the market to conduct the same activities. When the company enters the market, it is seen that company offers same products if a comparison is made with the competitors prevailing in the market (Salavou, 2015). Suppliers Power It is considered as low as there are many suppliers who are giving products in the market.The customers are free to purchase the same product from any outlet (Pervan, Curak and Pavic Kramaric, 2017). Power of Buyers The services and products can be availed from any store. So, the power of the buyers is high if the focus is given to the products available in the market. It is seen that it is considered as free as people are availing the services and products easily from the market. Threat of substituteIt is seen that high rate of substitution is there and the customers can easily substitute the products if they are not satisfied with the products. The customers have variety of products to choose from and they select the product which is of less prices and good. PESTLE ANALYSIS This analysis is helpful for the company so that the activities can be conducted in an effective manner. It is seen that this analysis help to analyze the overall macro environment and also the support is given is considered by the management when a proper evaluation is done through this analysis. On this development tool, the focus is given by managers so that proper evaluation can be made of the market in a proper manner (Yüksel, 2012). 2

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