Competitive Analysis and Research Studies

The assignment involves analyzing the competitive position of businesses using Porter's Five Forces framework. It also includes a review of several research studies that explore different aspects of business growth, innovation, and economic development. The studies cover topics like the impact of technology on business growth, the effectiveness of marketing strategies, and the role of government policies in shaping economic outcomes. The assignment aims to provide a thorough understanding of the competitive landscape and the factors that influence business success.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key considerations for evaluating growth opportunities.......................................................1
P2 Growth opportunities applying Ansoff matrix.......................................................................4
TASK 2............................................................................................................................................5
P3 Potential sources of funding with their drawbacks and benefits............................................5
TASK 3............................................................................................................................................7
P4 Design a business plan EduCom ++......................................................................................7
TASK 4............................................................................................................................................8
P5 Assess exit or succession options for small businesses.........................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Planning is a key of any business throughout its existence. Every successful organisation
is focused on regularly reviewing its business plan thus to ensure its future growth. In order to
gain future market development, small business are required to review their current performance
and then plan strategies and policies accordingly. In addition to this, planning for growth will
provide a basic structure to accomplish balance between working activities and tasks (Barbour
and Deakin, 2012). EduCom ++ is the chosen organisation in this coursework which provides
training and learning programmes to local people and employees of third party associations thus
to improvise their skills in specific area of concern. Apart from this, the assignment is prepared
with a provision for identifying growth opportunities in organisational context. The significance
of Ansoff Matrix will also be defined as it should be considered while planning for growth. This
will also state various sources of finance thus to ensure availability of funds for completion of
business operations.
TASK 1
P1 Key considerations for evaluating growth opportunities
Growth planning is strategic business activity which enable managers to plan and track
business performance. It allows companies to allocate their resources towards changes in
external environment by digital disruption and helps it to differentiate from competitors.
Planning helps small size firms to attain large market share and increase its revenues in a certain
time period. In this scenario, EduCom ++ is a small business association which offers various
training and educational programmes by using digital technologies to community centres and
institutions. Therefore, the business association use various e-learning tools and techniques
which makes easier the process of training and learning (Brinckmann, Grichnik and Kapsa,
2010). In order to enhancing its profit margins and sales revenues, EduCom ++ is developed an
effective plan which provides guidance to all activities that are liable for assuring future growth
and success of the company. Planning also helps staff members to accomplish all operations and
practices in the best possible manner; it also make them to able to face upcoming challenges or
threats at marketplace. Following is defined various key considerations which must ensure by
business organisations: -
Competitive analysis – Obtaining high competitive edge is one of the most important
element of planning strategy of the company. EduCom ++ is involved in providing educational
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training and learning programmes to people so that to become superior at marketplace the firm is
required to assess its competitors. It contribute in formulation of effective strategies and policies
which enables company to compete with its rivals. In present market scenario, several changes
are being occurred which may hinder business operations and its activities. Hence, while
planning management is required to determine its current and potential rivals (Burton, 2010).
Competitors' analysis can be done through Porters' five forces model: -
This assessment supports to analyse external rivals of the company while developing
plans for competitive markets and trends. Porters' five forces model was introduced in 1979 with
an aim to get better understanding of rivalry. There are five components of this model which are
gradually stated as under: -
(Source: Porter’s Five Forces of Competitive Position Analysis, 2018) Bargaining power of suppliers – Strong power of suppliers allows them to sell raw
materials at higher prices with low quality which directly affect firm's profits as they
have to pay more to buy inputs. Therefore, to handle this situation EduCom ++ find out
suitable supplier and manage good relationship with them.
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Illustration 1: Competitive analysis

 Bargaining power of customers - Buyers are the people who can force companies to
driven their prices down. This elements of Porters' five forces model signifies that how
many clients a firm have and how large their orders are (Chapin, 2012). In addition,
buyers have the power to demand low prices products with high quality which may lead
low revenues or profitability. Threat of substitutes – In current market scenario, there is an ample amount of similar
products and services can be easily founded. An effective substitution is easy and cheap
which can make weaken current market position of the company and threaten
profitability as well. For example – buyers can easily switch from one product to another
with little cost. Threat of new entrants – Profitable industries which earn high profits are enable to attract
new firms. Although, these entries will eventually reduces the profit of other firms which
deals in same sector. New entrants always come up with new and innovative ideas with
an aim to drawn large group of customers; it results decreasing the number of clients in
existing firms (Eddleston and et. al., 2013). Thus, to protect business from new entries
EduCom++ can apply key technologies and strengthen its marketing strategies. Competitive rivalry – It is linked with number of competitors or rivals are available in
target market, thus small businesses are required to analyse who are they, how they will
affect as well as quality of products and services. Where, there is intense rivalry
managers are focused on offerings their services on aggressive prices cuts.
In-depth market analysis – Proper knowledge of market trends helps small business
entities to develop systematic plan to attain future growth and success. In current market, there
are numerous factors available which can affect business activities in direct and indirect manner.
To analyse them, SWOT and PEST analysis should be done by firm. Along with this, in depth
market assessment will also assists in identifying needs and wants of customers so as to serve
them accordingly. With this assistance, companies are able to create long term plans and
strategies in respect to obtain their vision and mission.
Incorporation of digitalisation in business - The concept of digitalisation has become
wide and significant for business organisations in current market aura. Digital tools and
techniques helps small businesses to improve efficiency and creditability of their operations. As
the firm is catering training programmes for individuals as well as institutions thus to improve
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their pratical knowledge in particular field or areas; in this manner it can acquire various e-
learning concepts which makes easier the procedure of learning (Grover, Bokalo and Greenway,
2014). All these tools are liable for better understanding any concept to employees.
Assessing profitability and market share - While planning of growth and success, firms
assess several areas or sectors where they can get high profit margins and revenues. On the other
hand, to increase their market share small size businesses are focused on merger and
acquisitions. As EduCom ++ can combine its business with other companies for short or long
term so as to improve their market position as well as raising the number of customers. At this
time various aspects should be involved, who will be the target audiences, competitors and
current market trends etc.
P2 Growth opportunities applying Ansoff matrix
In this changing environment, every corporate association wants to grow and radiate in
market and for this it focusing on applying latest tactics or strategies so as to gain defensible
edge. EduCom ++ works as per the market changes by creating impulsive marketing strategies
and policies thus to expand its core functional areas. In order to identifying growth opportunities
in external environment, it is essential for companies to apply Ansoff matrix to measure future
risks and uncertainties which may hinder their current market position. Under this grid, EduCom
++ able to determine those areas which helps in to flourish its function activities and gaining
high competitive edge in a certain time period. The Ansoff matrix is known as strategy of
market diversification that gives a chance to firms to grow in either new and existing market with
new and current products (Yousefi, Shafaghat and Shakeri, 2014). The motive behind this is that
organisation can enter into a new quadrant (horizontal or vertical) for increasing market areas.
There is defined four elements of Ansoff matrix, such as -
Market penetration – It is first strategy of Ansoff matrix which entails to sell same
products and services in present markets. For effectively completion of this, companies are
required to demonstrate several ways which contribute in increasing customers' trust or loyalty.
They can also improve the quality as well as adding more features within existing products. Thus
to penetrate in its current market EduCom ++ has better opportunities as it can implement
digitalisation in its existing services that helps to improve working activities and practices. This
also boost up the quality of products and make their more imperative and effectual. Therefore, to
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performed effectively in London EduCom++ can adopt various promotional and marketing
campaigns which attain large group of clients towards it.
Market development – The strategy implies to enter into a fresh market with its current
offerings so as to expand market areas and improve market position as well. Market development
carries out numerous opportunities of small businesses like – EduCom ++ in respect of extend
brand image and market goodwill among customers. In comparison with other strategies, this
strategy is quite flexible and effective as it is also focused on booming up customers' value.
While applying the strategy, firms are required to determine geographical areas or locations from
where it going to be served (Sreedhar and et. al., 2018). If products are not matched with
customers' preferences then the concept get failure.
Product development – This block of Ansoff matrix deals with using several tactics or
tools so as to generate a new products as well as re-innovate the existing ones. It supports
companies to keep victorious and superior under competitive market. EduCom ++ is focusing on
applying several new techniques and modifying its distribution processes which enables to
deliver effectual training and learning sessions to individuals. Along with this, it also supports
businesses to extend its operations scale and attain large group of customers. In order to modify
its services EduCom ++ uses advanced technologies thus to make services better and efficient.
Diversification – This quadrant of Ansoff matrix is quite risky for business associations.
In diversification strategy firms are entered into new markets with their new products. It is
fundamental for small businesses to acquire this kind of tactics so as to gain maximum
competitive benefits. But before moving into other areas firms are required to determine
customers' needs and wants at least once so as to produce products and services accordingly
(Balli and et. al., 2014). For example – EduCom ++ has grabbed a contract to provide education
and training services as well as health and social work services to people which it has no more
experience.
TASK 2
P3 Potential sources of funding with their drawbacks and benefits
Finance is lifeblood of every business organisations which supports it in completion of all
tasks and activities in the best possible manner. Funding a business implies with expansion of
functional areas and make them more imperative. In present case study, EduCom ++ is a
training provider organisation and recently it has permitted in a contract named Community
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Learning Project & Partnership contract whose actual value is £105k. The contract deliver
Education, skills and knowledge for those aged 19+, but EduCom ++ has available only £20k to
invest in this project. Therefore, the firm has decided to receive a proportion of its funding to
third parties which enables to improve the efficiency of its services (Yahui and Lijuan, 2015).
The main sources of funding are stated as under: -
Bank loan: It is one of the most frequently source of financing and can be pursue nearest
lending centres of the company. Bank loans are quite tricky because they provide several options
of financing with diverse interest rates to company. It is essential for small businesses to educate
themselves with the loan processes.
 Advantage: Banks provides wide range of funding facilities and payback options as per
the needs of the firm. If business owner are qualify then bank process will be fair. UK
government has permitted to provide loans to small businesses on lower rates (Gamal,
Abdel Ghaffar and Alghezwy, 2016).
 Disadvantage: Due to constant changes in market trends, bank loans are too difficult to
obtain. The entrepreneur owes the borrowed amount doesn't matter company succeed or
not. In addition to this, documentation is time consuming and tedious.
Crowdfunding – It is known as one of the most effective practice of funding to a new
venture. In crowdfunding, business owners collects money in small amount from large group of
people through internet and social media sites. If a business has new and unique idea then it can
easily earned lots of funds.
 Pros – It is flexible and easiest way of getting finance which requires no more additional
fees. Pitching any project via online modes is also helpful in its marketing and promotion.
 Cons – In case if a business get failed then affects its market goodwill (Lyee and
Cowling, 2015).
Venture capital – In present market, there is a variety of venture capitalists; there are the
people who invests their money into businesses in exchange of certain equity. Before putting
their money into any business idea, VC always evaluate firm's profit & loss statements and other
financial records. These are the professional investors and look for investments which can render
that 6X more returns on their investments. Pros – Venture capitalists put large amount of investments; they also provide expert
advice and further assistance to business organisation regrading whether business will
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grow or exit. Being VC funded carries out instant credibility for small companies. It
opens door of wide networks for individuals.
 Cons - Venture capitalists take certain essential steps in order to gain high returns on
their investments, including exclusion of owners from their own business. They may also
steer the firm in a wrong direction which is totally different from its goals and objectives.
There are several sources available for EduCom++ to rise fund but for them venture
capital will be the best source because in this investors invest their hard earned money and
company gives equity to them in against of it.
TASK 3
P4 Design a business plan EduCom ++
A business plan is a procedure which aligns business objectives and practices together so
as to obtain future growth and development. Business plan is pathway which dictates what will
be done, how to done, to whom and when will be done. It also signifies which kind of actions or
initiative should be undertaken in order to attain firm's goals and objectives in the best possible
manner. Following is discussed various stages of business plan of EduCom++ -
Overview of the company – EduCom ++ is the chosen organisation which is providing
educational training and development programmes to people and community centres so as to
improve their skill and knowledge level (Reddy, Ambati and Koduganti, 2015). For this, the firm
is using several new and innovative tools, i.e. e-learning methods.
Mission and vision of the company – The mission and vision statement of EduCom ++ is
to fulfil in most effective manner, clients' needs and wants. For this, it is accompanied
advancement and encouragement that goes to raising competitive benefits.
Objective of the company- The company is expecting to raise its sales by 15% in
coming 6 months in order to increase profitability of the organisation. Thus, in order to achieve
it, EduCom ++ will alter its marketing strategy and increase its promotional activities in the
market through social media tools such as twitter, Facebook, official websites, etc.
Products and services offered by the firm – The main services of the company is Educational
programmes, motivational events, learning activities, skill and development programmes.
Situational analysis – It can be done through SWOT analysis of the company that is
stated as under: -
Internal Strength Weaknesses
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factors  Low operational costs.
 It is easier for EduCom ++ to
adapt market changes due to its
bureaucratic nature.
 Strong relations with customers
which results greater
accountability.
 Potential customers are less
likely to do purchase with
SMEs.
 Low brand image and
goodwill
 Not having skilled personnel.
External
factors
Opportunities
 Globalisation and digitalisation
provides new direction of
success to companies.
 Emerging market trends
 Foreign direct investments
Threats
 Lack of political peace and
stability
 Increase in price of inputs
 Financial stringency
 Intense market competition.
Identification of target market -
There are numerous target audiences of organisations like – EduCom ++, such as – local
people, schools, large and medium business associations and other people who are willing to
learn some kind of practical knowledge of work in specific area of study. Apart from this, the
firm is also required to identify Niche Marketing which signifies market segmentation. It is the
market in which there is no competitor exist thus the firm has decided to emerge in such markets.
Basically, the firm has targeted employees of multinational companies who wants to add more
skills and competencies in their working areas.
Formulation of marketing budget – There is given annual budget of EduCom ++ -
Particulars Amount
Marketing activities
Advertising 40000
Direct selling 25000
Sales promotion 10000
Total 75000
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Total forecasted budget
Particular 31/12/15 (£) 31/12/16 (£) 31/12/17 (£)
Implementing
technology cost
15000 - -
Promotional expense 9000 8000 6000
Advertisement
expense
6000 5600 5800
Catalogues 2000 4000 3000
Training charges 6500 8000 8500
Total Cost 38500 25600 23300
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TASK 4
P5 Assess exit or succession options for small businesses
Implementation of any business does not mean it will gain positive outcomes as there
could be some potential negative outcomes as well. Although, the main objective of every
business is to earn high profit margins and it is totally relies upon performance level. But
sometimes it is quite difficult for businesses to effectively cope all changes in external
environment; this leads exit of business. There are numerous ways through which firms can way
out from its existing business, such as -
Liquidation – It is known as “close up the company and sell all of its assets” exit
strategy. Liquidation strategy is suitable for those small businesses which are dependent on the
performance of single people; the situation occurs when there is nothing sell to else of a business
to cover all losses. At this, business owners spend some time to retooling their business and
make necessary modifications thus it can be operated by another one who will buy it (Pumklin
and et. al., 2015).
Advantages -
 Simple and flexible in nature. Businesses can be easily wound up (depends on the sale of assets)
Disadvantages -
 It form of exit provides lowest return on investments.
 The acquirer will only give money of tangible assets – equipment, land, plant and
machinery etc.
 Creditors have first claim to get funds from assets of sales.
Sale business in open market – Many companies can also sell their business in open market to
people who are interested to purchase it. At a certain point when business owner wants to retire
then they sell their business to others and walks away from it. Advantages – Profitable business would be easily sold at high prices. Disadvantage – Finding a suitable buyer who will do right with business is a long
process.
Approaches of succession planning: -
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 While planning of succession strategy, small businesses can apply the the concept of
digitalisation in its working processes thus to make them more imperative and
understandable to all people. The main digital tools which can be used by EduCom ++,
such as – automation, online videos, gamification, massive online open courses and so
on.
 Another succession strategy for small businesses is to provide training and development
assistance to employees; it improves existing skills and knowledge level of people thus
they will deliver something better to clients. The strategy is emphasised on optimal
utilisation of human resources.
For EduCom++ best exit option is to sale their business in open market because in this
the person who is purchasing respective company will also buy their creditors as well as debtors.
CONCLUSION
From the above mentioned report, it get evaluated that planning for growth is one of the
crucial task for every business association which helps company to ensure future market and
success. The assignment has stated that EduCom ++ needs to measure certain key considerations,
such as – competitors analysis, market analysis and so on. Apart from this, with the assistance of
Ansoff-matrix managers can assess market area which are beneficial for it and supports to attain
their goals and objectives. Furthermore, there has developed as business plan in order to
determine activities which supports attain firm's goals and objectives. Assessment of exit and
succession options of small businesses has been also done later.
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Online
Porter’s Five Forces of Competitive Position Analysis, 2018. [Online]. Available through:
<https://www.cgma.org/resources/tools/essential-tools/porters-five-forces.html>
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