Assignment on Strategic Business Analysis
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Added on 2020-04-01
Assignment on Strategic Business Analysis
Added on 2020-04-01
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Running head: STRATEGIC BUSINESS ANALYSIS Strategic Business AnalysisName of the Student Name of the University Author’s Note
1STRATEGIC BUSINESS ANALYSIS Question1. To what extent do you agree with the view that organizations need to considerboth their position in the market and their internal resources if they are to gain andmaintain a competitive advantage? Competitive advantage is the favorable position of an organization that implies somemajor strategies and policies in order to become a threat for its competitors. The primary purposeof making competitive advantage is to perceive greater value to the target market moreeffectively than the competitors. Greater value can be achieved by applying numerous strategiessuch as providing better quality of products as well as services, lowering the price level ofproducts and increasing market effort by applying numerous promotional strategies and policies.As per the opinion of Dunning (2015), in order to gain competitive advantage the organizationshould focus on two major business strategies and policies based on which the business expertswould become a major threat for its competitors. The factors include implementing propermarket based strategy and using appropriate resource based strategy. The market basedstrategies with the help of which organizations can retain their market position includes asfollows: As per the concept of Ansoff Matrix model a business organization can follow four majorsteps of retaining a constant demand in the current market. The stages include market penetrationstrategy, product development strategy, market development strategy, diversification strategy. Market penetration strategy:Market penetration focuses on selling existing products to the existing customers. In caseof high market share of a specific company the business experts do not need to enhance theirtarget market. At that specific time, the market managers intend to make customer retention plan.
2STRATEGIC BUSINESS ANALYSIS The service providers aim to make an effective rapport with the existing customers so that theydo not intend to change their consumer behavior (Kirchmer 2012). Product development strategy:In many cases, it has been observed that competitors after implementing their innovationstrategies and policies give a major threat to a particular organization. As a result, the marketingmanagers have to make different strategies and policies in order to regain the trust of customers.Product development in the existing market is one of the most effective strategies for customerretention (Rummler and Brache 2012). The business executives can render diversified productswithin the business process. As a result, customers belonging to different geographical marketswould show their interest in purchasing the brands. On the other hand, the product mangers intend to reduce the price range for drawingattention of low cost customers. In this kind of situation, the number of target customers wouldbe enhanced automatically. In order to become a major threat for its competitors the businessmanagers would like to implement numerous business strategies and policies with the help ofwhich product can be developed (Lee, Olson and Trimi 2012). The marketing managerssometime enhance their promotional strategies as well for drawing the attention of large numberof customers. Market development strategy:After making an effective product development strategy the marketing managers intendto focus on market development strategy as well. Market development strategy impliesimproving distribution channels, making more effective promotional activities, expanding thegeographic location, enhancing target market and so many. With the help of effective
3STRATEGIC BUSINESS ANALYSIS promotional activities the customers belonging to different geographical markets would be ableto show their interest in purchasing products as well as services (Amit, and Zott 2012). Marketdevelopment strategy is highly significant for drawing the attention of international customersbelonging to different geographical areas. Diversification strategy:Implementing varieties of product within the business process is highly important fordrawing the attention of large number of customers belonging to different geographical market.Product diversification has been implemented within the business organization only when thebusiness experts intend to expand their entire process of business in different geographical areas.This specific study has focused to make an in-depth evaluation on how the businessorganizations would be able to maintain their market position. Garrigos-Simon et al. (2012) stated that in order to maintain competitive advantage alongwith gaining market position the business experts should have effective resources with the helpof which market based strategies can be implemented successfully within the organization. Theresource based strategies that the business experts can follow within the organization is asfollows:Tangible assets:In order to expand the entire process of business in different geographical boundaries aspecific business organization should have tangible resources such as Land, buildings,machinery, equipment and capital. In order to draw the attention of customers a particularorganization needs to have a proper infrastructure with the help of which customers would like tosow their interest in purchasing the products as well as services (McGrath 2013).
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