Strategy Change

Running head: STRATEGY CHANGE
Strategy Change
Name of the Student:
Name of the University:
Author Note:

1
STRATEGY CHANGE
Table of Contents
1.0 Introduction................................................................................................................................2
1.1 Conceptual Analysis of Strategy formulation and Business Model..........................................2
1.2 Factors to be considered............................................................................................................3
1.2.1 External Analysis: Threats and Opportunities....................................................................3
1.2.2 Porter’s Five Force Model..................................................................................................4
1.2.3 Competitor Analysis...........................................................................................................5
1.2.4 Resources, Capabilities, and Core Competencies...............................................................5
1.2.5 Value Chain Analysis.........................................................................................................6
1.3 Traditional Approaches to formulate Strategies........................................................................7
1.4 Limitations of these Approaches...............................................................................................8
1.5 Business Model addressing these Limitations...........................................................................8
1.6 Recent Approaches to Strategy Formulation complementing the use of Business Models......9
1.7 Conclusion...............................................................................................................................10
References......................................................................................................................................12

2
STRATEGY CHANGE
1.0 Introduction
Strategy is conceptualized as the coordinated and integrated set of actions and
commitments that are designed to exploit the core competency level of the firm and achieve the
competitive advantage. Each of the firm pays attention to the successful formulation and
implementation of the value creation strategy to attract more customer base (Hill et al. 2014). It
is notable that the competitive advantage is formulated when a firm creates the superior value for
the customers and the rivals in the external market fail to replicate such strategies. However, the
current business scenario has been experiencing drastic changes due to the technological
advancements and the changing customer demands. Therefore, the business marketers require
replacing the traditional strategic implementation process by undertaking the better business
model development method. The study would thus explore the significance of using the
innovative business model by presenting the limitation of the traditional strategic approaches.
Furthermore, with the help of theoretical framework, the study would also discuss the recent
approaches of strategic approaches that are complimenting the business model.
1.1 Conceptual Analysis of Strategy formulation and Business Model
According to Karadag and Hande (2015), strategy is formulated to present the long term
concept of the enterprise development that determines the methods and objectives of achieving
the corporate goals. The business organisations observe the external market influence and
scenario to determine the formulation and implementation of the appropriate strategic steps. On
the other hand, Husted et al. (2015) explained that the business model represents the successful
operational process of a firm by identifying the revenue sources and intentions of selecting a
particular customer base. The business model clarifies the detailed analysis of the products that

3
STRATEGY CHANGE
are to be offered to the potential clients and determines the necessary finance to be invested to
receive better outcome. Current business scenario is much challenging due to the continuous
development in the technological fields. Recent business scenario is much competitive due to
which each of the business companies seeks better strategic implementation and more advanced
methods. The business model innovations quench such needs by developing the systematic
business procedures that feed the external market needs and provides the better outcomes
(Dameron et al. 2015). The further section of the study would thus explore the factors to be
considered in implementing a strategy. The major limitations would be analyzed accordingly.
1.2 Factors to be considered
Business marketers keep their focus on developing capitalization by utilizing the market
opportunities. However, some of the external factors increase the competitive scenario much
significantly. The major factors to be considered in such regards are:
1.2.1 External Analysis: Threats and Opportunities
Every firm requires identifying the changing needs of the firm within which it operates.
In order to foster dynamic capabilities, it is essential for the managers to adopt two critical tasks.
First, they need to sense the changes taking place in the external market and utilize the
opportunities for the betterment of the firm’s position (Dayan et al. 2017). Second, it is essential
to identify the threats in the external market and work on the practices that require more
improvements. It is noted that the firms that fail to address the macro-environmental trends end
up losing their competitive advantage. Market opportunity is considered as the condition of the
general environment and exploring opportunity would help the firm to achieve competitive
advantage. For example, Procter and Gamble has identified the opportunity to re-orient the