Strategic Analysis of CLP, Microsoft, Sony and Tesco

Running head: STRATEGIC ANALYSIS
Strategic Analysis
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1STRATEGIC ANALYSIS
Table of Contents
Introduction................................................................................................................................2
CLP’s business strategy.............................................................................................................2
A case study of the effectiveness of Satya Nadella as the CEO of Microsoft...........................4
A recovery plan for Sony Corporation.......................................................................................4
A suitable strategy for risk management....................................................................................8
Conclusion................................................................................................................................10
References................................................................................................................................12

2STRATEGIC ANALYSIS
Introduction
This assignment will aim to address basic issues related to the strategic management
of various business organizations. It will also critically analyze various theoretical models
such as, the Porter’s model of five forces, and its application to provide a strategic business
plan, which is practical for the companies involved. The assignment will also take a case
study like approach to the effectiveness of management of Microsoft by Satya Nadella by
performing an analysis of the strategy employed by him. The assignment will also provide
recommendations to the CEO of Sony Corporation in order to overcome the poor business
conditions that the company has experienced in the last 5 years. It will thus provide a
recovery plan for the company to generate profitable business in the market.
CLP’s business strategy
According to the Porter’s model of five forces, the five factors influencing market
competition for an organization are the threat of new entries into the market, threat of
substitutes, bargaining power of customers, bargaining power of suppliers and the rivalry,
which exists in the industry in which the company operates. Now, the business strategy
followed by the CLP group based in Hong Kong consists of three pillars, such as, value
towards the consumers, proper return to the shareholders and providing social as well as
environmental benefits (Yunna and Yisheng 2014). As CLP is an electricity supplying
company, therefore, its primary target is to provide value to its consumer bas by supplying
high quality electricity with no power cuts or interruptions, thus ensuring a smooth flow of
electricity within its wide customer base, which spreads across Hong Kong, Mainland China,
India, Australia and South East Asia. By providing such a high value to its customers, the
CLP group eliminates the threat of new entrants along with the probability of bargaining of

3STRATEGIC ANALYSIS
the customers. It does so by supplying high quality and uniform flow of electricity supplied
by the company is unrivalled as well as reasonably priced, which ensures customer retention,
and thus, it eliminates both of the above factors among the Porter’s five factors (E. Dobbs
2014).
The second most important pillar in the three-pillar structure of the CLP group’s
business strategy is making proper returns to the company’s shareholders. This strategy
strengthens the professional bonds between the company management and the shareholders
of the company, and thus in turn, helps to somewhat curb the cutthroat rivalry in the power
generation and supplying industry in Hong Kong. In addition to that, the threat of substitutes
is also reduced by CLP group’s high quality and uniform service of providing electricity, as
any substitute for electricity is both very difficult to obtain as well as much more costly for
the consumers. Moreover, the third pillar of the business structure of the CLP group is to
provide social along with environmental benefits, which in turn, minimizes the threat of
substitutes as their service is much more environment friendly in comparison to any other
substitutes of electricity.
Finally, the marketing strategy of the CLP group is to ensure that its product reaches
out to the core sector of the consumers. This section of the consumers is distributed all
through Hong Kong, South East Asia and India. Such a marketing strategy ensures that the
CLP group grows its customer base gradually, thus expanding to even more territories
(Rothaermel 2015). On the other hand, the CLP group also focuses heavily to build as well as
maintain a strong network of suppliers of raw materials to the company. Hence, it reduces the
risk of bargaining by the suppliers of the materials. In this way, the CLP group by employing
a three-pillar structure creates a sustainable market competition according to the porter’s five
forces of the market.