Strategic Management Practices Report

This report examines strategic management practices, focusing on the Australian e-commerce platform, Stylerunner. It analyzes the company's competitive landscape using Porter's Five Forces model, assessing the bargaining power of suppliers and buyers, threats of new entry and substitutes, and rivalry among existing firms. The report then delves into the resource-based view, identifying Stylerunner's valuable, rare, inimitable, and non-substitutable resources. Core competencies, such as a wide range of high-quality products and effective after-sales service, are highlighted as key differentiators. The report further explores strategies for achieving competitive advantage through cost leadership, differentiation, and value creation, emphasizing the importance of customer service, efficient logistics, and effective issue resolution for long-term growth and sustainability in a competitive market.

Strategic management
practices

Table of Contents
INTRODUCTION...........................................................................................................................1
ASSIGNMENT................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Strategic management is significant for each and every business unit to sustain in the
competitive market. It is related to the strategies and plans which can provide competitive
advantage for an organization over it rival firms. This report is based on Stylerunner which is an
e-commerce platform that operates their business operation in Australia (Freeman, 2010). It
provides a wide range of products to its customers. The purpose of this report is to significance
of strategic management practices in small and new businesses that can help to gain competitive
superiority over others in the market.
ASSIGNMENT
Industry attractiveness is one of the important factors which influence new businesses in
the market. There are various reasons which can influence an organization like market
opportunities, attractive potential profit and long term growth in the market (Hill, Jones and
Schilling, 2014). Today e-commerce platform business is growing day by day due to internet
connectivity and increasing internet users. Stylerunner requires to conduct a careful analysis of
competitive forces that can affects the business in Australia. Porter's five forces model can help
to identify and analyse the effectiveness of market which can help to make their long term
strategies accordingly. Following is the competitive forces model for Stylerunner:
Bargaining power of suppliers: It is one of the important forces that can identify and analyse the
bargaining power of suppliers (Herman, 2011). Stylerunner has a large number of suppliers
which have limited bargaining power Because of the reason that firm can buy their material from
different suppliers. It can help to provide products at lower rate to its customers.
Bargaining power of buyers: There are large number of e-commerce companies which can
increase the level of competition in market. As per the given scenario, firm sales can be affected
by its customer. It isbecause there are large number of e-commerce business units. It can provide
wider choices to the customers, so that they can buy their products anywhere they want(Li and
et. al., 2006).
Threats of new entry: There is no barriers on the entry of firms in e-commerce sector. It can
make the market more complex and competitive. As e-commerce industry is growing day by
day, it can attract companies. If Stylerunner is required to compete in the market, they can
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provide high quality at lower prices as compared to others. It can give competitive advantage to
the firm.
Rivalry among existing firms: There are various other firms which are already in the e-commerce
market. They have more experience and expertise in this industry. Additionally, they also have
large capital which is not good for a small business unit (Oke, 2007).
Threats of substitute products: It is another factor which can affect the business operations and
profitability of company. For example if Stylerunner can sell products of a particular brand, on
the other hand, the same products is sold in the market offline. It can hinder the growth of new
firms.
Resource based views is an approach which can help in increase performance and productivity. It
can differentiate a firm from other business unit. In this approach higher authorities of the firm
can analyse internal environment and use their resources more effectively (Lenny Koh and et. al.,
2007).
Resources of the firm are valuable for Stylerunner which involve assets, skills,
information, capabilities, organizational culture, organizational process, business attributes and
knowledge. It can help to provide the products and services to its customers in a satisfactory
manner. All resources are not equally valuable for the company. All resources can not give the
strategies advantage to the firm. Only few resources can make the business unit different form
their rival companies (Chien and Shih, 2007). For the company there are following attributes
which can provide the strategic superiority are given below:
Valuable: The resources which are valuable to the company comes under the valuable.
These resources can give the competitive advantage to the firm. The valuable resources of
Stylerunner is high quality products that can help to increase their sales and profitability.
Rare: In this category, those resources are involved which are unique from other firms
and can give strategic advantage to the business unit. The firm having strong logistic system
which can falls under the rare resources of the company.
Inimitable: It includes those resources which can not provide the competitive advantage
to the business unit. For Stylerunnern, after sale services are more effective as compared to its
rival firms. It can help to build the competitive advantage for organisation.
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Non-substitutable: In this category, resources which are not equal to other resources. can
be called non-substitutable. For the business unit, their local vendors can be non-substitutable
resources which cannot give strategic advantage to the firm.
Core competency is a uniqueness which can be technology, skills, capabilities,
information and knowledge for a business entity (Montabon, Sroufe and Narasimhan, 2007). It
can create different value for its customers. For Stylerunner, core competencies of the company
can be wide range of products with higher quality, lower quality products as compare to others
etc. These core competencies can help the firm to make value of its brand in the market. These
capabilities can also help in giving competitive advantage to the firm. If organisation provides
high quality products to its customers, it can lead to increase the customer loyalty. Therefore,
company is required to maintain their core competencies which can help to create and develop a
valuable online platform in Australia (Wook Kim, 2006).
A competitive advantage makes the firms better in a competitive market. It is the
superiority which can differentiate organization's products and services in terms of quality and
lower price as compared to its rival firms. These attributes can give company the competitive
advantage. Stylerunner is required to gain competitive superiority from following approaches:
Cost Advantage: It is one of the important approaches which can help company to
develop competitive advantage for the firm. If a business unit can provide products at lower price
as compared to other firms, it can help to increase the sales and output of company. It can lead to
increase the profitability generation (Nair, 2006). Corporation is required to contact those
suppliers which can provide goods at lower price. Additionally, they can use effective approach
like optimum utilization of their resources and make their logistics system more cost effective. It
can help to gain competitive advantage over others in the market.
Differentiation: It is another weapon which can be used by the business units to gain
competitive advantage. In order to make their product more unique, firms can try to create
uniqueness in their products and services as compared to its rival business unit. In order to
provide differentiate products and services to its customers, they can make their products
technologically advanced, different uses of the products and best services. It can help to increase
the market share and profitability of company (Freeman, 2010). Small business unit can make
their products highly qualitative which can help in building customer loyalty. The firm can also
use premium products for their customers which can help to increase the market value and
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goodwill in the market. Stylerunner manager is required to make their brand valuable and more
superior. It can help to build market competitiveness and provide strategic advantage to its
customers.
Value Creation: These attributes can help company to create and build the value for their
customers as well as organization. Manager of business unit is required to focus on making
activities effective like on time delivery, fast replacement and a sound after sale service can help
to support the value chain of firm (Hill, Jones and Schilling, 2014). The firm can focus on
maintaining long term relationship with their vendors. These vendors can make fast supply of
goods in the peak time.
It is important for a new business unit that they can make a long term plan and strategy
which can help to grow their business. Higher authorities can focus on the customer services. A
customer centric approach can be useful for company to sustain in the competitive market
(Herman, 2011). They can concentrate on their transportation and logistics system. It can help to
support their business activities in order to provide fast delivery of goods form vendor to the
customer. Another important task is related to the after sale services as there are various issues
that can create a serious problem for a new business. If company can resolve customer issues in
an effective manner, it can help to increase the customer satisfaction level. A satisfied customer
also can repurchase the firm’s goods and services. These issues can be replacement of existing
products, repair of the existing products, repayment issues, etc. (Li and et. al., 2006). All these
problems can be solved quickly by the business entity. It can help to give competitive advantage
to the firm over its competitors.
CONCLUSION
As per the given report, it has been concluded that strategic management helps the new
business unit to sustain in complex and competitive business environment. It has been assessed
that cost and differentiation advantage can help the firm to become more competitive in the
market. Additionally, it also explained the resources, core competencies and other attributes of
company which can provide long term growth and strategic advantage.
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REFERENCES
Books and Journals:
Chien, M.K. and Shih, L.H., 2007. An empirical study of the implementation of green supply
chain management practices in the electrical and electronic industry and their relation to
organizational performances. International Journal of Environmental Science and
Technology. IJEST. 4(3). p.383.
Freeman, R.E., 2010. Strategic management: A stakeholder approach. Cambridge University
Press.
Herman, R.D., 2011. The Jossey-Bass handbook of nonprofit leadership and management. John
Wiley & Sons.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Lenny Koh, S.C. and et. al., 2007. The impact of supply chain management practices on
performance of SMEs. Industrial Management & Data Systems. 107(1). pp.103-124.
Li, S. and et. al., 2006. The impact of supply chain management practices on competitive
advantage and organizational performance. Omega. 34(2). pp.107-124.
Montabon, F., Sroufe, R. and Narasimhan, R., 2007. An examination of corporate reporting,
environmental management practices and firm performance. Journal of operations
management. 25(5). pp.998-1014.
Nair, A., 2006. Meta-analysis of the relationship between quality management practices and firm
performance—implications for quality management theory development. Journal of
Operations Management. 24(6). pp.948-975.
Oke, A., 2007. Innovation types and innovation management practices in service companies.
International Journal of Operations & Production Management. 27(6). pp.564-587.
Wook Kim, S., 2006. Effects of supply chain management practices, integration and competition
capability on performance. Supply Chain Management: An International Journal.
11(3). pp.241-248.
Online:
Environmental Management in Small and Medium-Sized Companies: An Analysis from the
Perspective of the Theory of Planned Behavior, 2014. [Online]. Available
through:<https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3922869/>. [Accessed on 28th
December 2016].
The Importance of Core Competencies to the organisation, 2016. [Online]. Available
through:<https://writepass.com/journal/2012/11/the-importance-of-core-competencies-
to-the-organisation/>. [Accessed on 28th December 2016].
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