Market Analysis and Competitive Strategy in Management

Management
MBA
Student name
5/2/2019

The current scenario of the market majorly highlights about the competition. Every
business whether it an existing one or a new entry, all are in competition with one
another Hence, by making use of various marketing tools every company firstly
analyse the market and then further initiates for competitive strategic decisions so
that in future the workings can be carried effectively and efficiently. In terms of
competitive strategy, there are numerous ways, which helps the company to analyse
the entire market and accordingly, the business takes actions to generate long-term
success.
Posters 5 force model- Posters five-force model is one of the market analysis tools
of the business that helps in shaping every industry and helps in determining the
industries weaknesses and strength. Hence, it is applied to various segment of the
economy in order to search for profitability and attractiveness.
Wesfarmers is one of the famous and well-renounced companies in Australia, which
is based on food and staples retailing aspect. This company due to the innovation
aspect, lower pricing strategies, cost reduction and providing new value to
proposition to the customers face many challenges of new entrants. Along with this,
the capital requirements are also high which makes difficult for the other company to
set their business.
In terms of the bargaining power of the suppliers, Wesfarmers avail their
resources from its different market as a resultant, there are numerous varieties of the
product and the services which thy deal in with. Hence, this highlights that the
company has only limited competition in the supplier's markets. Thus, this is one of
the major obstructions for the Wesfarmers as the organization, which are totally
depended over many suppliers at a time.
Bargaining power of the buyers- In this aspect, Wesfarmers does the market
analysis in order to know about the customers’ wants, expectation, and the modern
trends of the customers’. Hence, for thisWesfarmers also generates and apply its
sustainable approach for further recognition. This highlights that the buyer's power is
moderate in nature and with the adoption of the various strategies such as
innovation and differentiation will attract more of customers.

Rivalry among firms- Wesfarmers is one of the well-known firms of Australia and
has its name all over the world. Hence, with such a brand image the number of
competitors is very few. In terms of cost, Wesfarmers is having a higher fixed cost,
which makes the entire company push to full capacity. Moreover, Wesfarmers is
majorly focused on product differentiation so that the company product can be
unique and helps them in reducing the other existing firm competition (D'Amato,
2010)
.Threat of substitutes- In terms of substitutes; it is very high of Wesfarmers as
compared to the other aspect. Wesfarmers states that they have adopted a
sustainable aspect to grow and have adopted environmental friendly, energy efficient
methods of productions. So that the overall working within the organization can be
improved, leads to the best quality of products and consumers services which leads
to the competitive advantage and hence it reduces the effect of the substitutes and
will increase overall profitability.
SWOT analysis- SWOT analysis highlights about the strategic planning technique
that helps the company to know about the strength, weaknesses, opportunities, and
threats, which are related to the further business competition or project planning and
overall success.
Adidas is one of the strongest sports brands in the world, which is well known by
every individual. As they are known most prominently for its range of shoes, this
brand also started manufacturing for clothing and accessories. In terms of SWOT
analysis, strength highlights the company’s strong points for which the companies
brand image and liking are at hike (Byun, 2015).
Strength of Adidas highlights that it is that brand that carries decades of heritage
and legacy over a longer period and over years; it has maintained its reputation in
the market for being a youthful brand till date. Along with this, Adidas also has a
diversified portfolio in products. Moreover, this brand also has a strong financial
position over an entire market.