Significance of Strategic Management Practices

Added on -2020-02-14

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Strategic managementpractices
Table of ContentsINTRODUCTION...........................................................................................................................1ASSIGNMENT................................................................................................................................1CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5
INTRODUCTIONStrategic management is significant for each and every business unit to sustain in thecompetitive market. It is related to the strategies and plans which can provide competitiveadvantage for an organization over it rival firms. This report is based on Stylerunner which is ane-commerce platform that operates their business operation in Australia (Freeman, 2010). Itprovides a wide range of products to its customers. The purpose of this report is to significanceof strategic management practices in small and new businesses that can help to gain competitivesuperiority over others in the market.ASSIGNMENTIndustry attractiveness is one of the important factors which influence new businesses inthe market. There are various reasons which can influence an organization like marketopportunities, attractive potential profit and long term growth in the market (Hill, Jones andSchilling, 2014). Today e-commerce platform business is growing day by day due to internetconnectivity and increasing internet users. Stylerunner requires to conduct a careful analysis ofcompetitive forces that can affects the business in Australia. Porter's five forces model can helpto identify and analyse the effectiveness of market which can help to make their long termstrategies 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 thebargaining power of suppliers (Herman, 2011). Stylerunner has a large number of supplierswhich have limited bargaining power Because of the reason that firm can buy their material fromdifferent 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 canincrease the level of competition in market. As per the given scenario, firm sales can be affectedby its customer. It isbecause there are large number of e-commerce business units. It can providewider choices to the customers, so that they can buy their products anywhere they want(Li andet. al., 2006). Threats of new entry: There is no barriers on the entry of firms in e-commerce sector. It canmake the market more complex and competitive. As e-commerce industry is growing day byday, it can attract companies. If Stylerunner is required to compete in the market, they can1

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