Strategy Enterprise and Innovation: Analysis of Internal Capabilities and Resources of Aston Martin

This report analyzes the internal capabilities and resources of Aston Martin, a British independent manufacturer of luxury sports cars and grand tourers, to determine its competitive advantage. It also evaluates the impact of competitive forces on profitability and entrepreneurial activities within the industry using Porter's five forces analysis. The report includes a PESTEL analysis of the external environment and discusses the importance of strategy, enterprise, and innovation at the organizational level.

Strategy Enterprise and
Innovation

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analyse internal capabilities and resources which gives the organisation a competitive
advantage into critical manner...............................................................................................3
PESTEL Analysis of Aston Martin........................................................................................6
Evaluate the competitive forces impact which influence profitability and entrepreneurial
activities within industry with support of Porter's five forces analysis .................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9
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·INTRODUCTION
Enterprise strategy is that strategy which deals with issues that affect the firm in a whole
manner. It is basically the broadcast form of strategy within a business. These strategies have
developed at a higher level within a firm by board of directors and top management team.
Innovation is the factor which is the practical implementation of ideas which results into the
introduction of new goods and services. These entrepreneurial strategy is helpful in terms of
innovation within the business(Agostini and et.al., 2017).The strategy can align the execution
factor of innovation into positive manner. In the present report, Aston and Martin is taken into
consideration. Aston Martin is a British independent manufacturer of luxury sports cars and
grand tourers. The company is headquartered in UK country. The company was founded by
Lionel Martin and Robert Bamford. The present report will cover discussion about internal and
external environment of the concerned company. In addition to this, the report will cover
analysis about nature of entrepreneurial recognition which includes need for innovation and
creativity which support the organisation to exploit market opportunities.
·MAIN BODY
·Analyse internal capabilities and resources which gives the organisation a competitive
advantage into critical manner
For understanding the competitive advantage, SWOT analysis and VRIO analysis is
taken into consideration for analysing internal capabilities and resources.
STRENGTHS
·The company has its history and it has faced two world wars still it has the big reputation in this
auto mobile industry.
·Aston Martin offers good quality cars but it has heavy-duty manufacturing and designing team.
·Aston Martin cars are very expensive in terms of price so they only target to the cream of the
society.
WEAKNESSES

·It has short market in terms of size when compared to similar companies into the market.
·Aston Martin offers limited number of consumers choice and also they have very few model
availability. OPPORTUNITIES
·They are available in various number of countries but it is very difficult to buy it . To penetrate
the market they definitely work on expanding themselves (Anthony and Majid., 2016).
·Aston martin basically produce those products which are of luxurious nature but they can use
technical knowledge in terms of producing products that will help people in getting better cars.
THREATS
·Prices of petrol are increasing in continuous manner so they have to work on manufacturing of
electric cars as well.
·Aston martin is facing tough competition and it has various kinds of competitors like Bentley,
Jaguar and others.
VRIO analysis is helpful in terms of determining internal capabilities and resources and it is
defined into following manner:
Valuable: According to this analysis, employees are important resource for the firm
There are some percentage of workforce which are highly enough trained and they are lead
towards more productive output to an organisation. Company's patent are important resource for
the firm in terms of selling their products without any competitive interference(Barsegyan and
et.al., 2020).The distribution network is also valuable resource for the firm and it support in
terms of reaching out to more and more number of customers.
Rare: According to this analysis, financial resources of Aston Martin are found to be
rare. In this industry, financial resources are only possessed by few companies. The patent and
distribution network are rare for the firm because this particular patent are not possessed by
competitors and also not easily available. For coming up with better distribution network they
require investment and time and it is also possess by few firms in the industry.

Imitable: According to this analysis, financial resources of the company are costly to
imitate. With support of prolonged profits over the years these resources have been acquired by
the company.
The company's employees are also not imitate on costly basis because other firms can
train the employees in terms of improving their skills (Chen and et.al., 2018).Company's patent
are difficult to imitate because it is not legally allowed to imitate a patent product.
Organisation: The financial resources of Aston Martin are organised to capture value
which is identified by according to this analysis. These resources are used in strategic form to
invest into the right places. The patents of the company are not well organised because it means
that patents are not used to its full potential.
ResourcesValueRareImitation OrganisationCompetitive Advantage Digital strategy
successful implementation YesNoCan be imitated by competitors Leading player in the
industryThis strategy has become critical in the industry but it can't provide competitive
advantage Customer communityYesYesDifficult to imitate the culture and community
dedication Goes according to dataProvides strong competitive advantage Financial Resources
YesNo Market liquidity and financial instruments are available to nearest competitorsSustainable
financial positionTemporary competitive advantage Talent for managing regulatory and legal
obligations YesNo Can be imitated by competitorsYesNot a critical factor
l壱PESTEL Analysis of Aston Martin
It is basically a framework used for the purpose of critically understanding the external
threats and opportunities that are available fir a respective business organization because if the
developments in the macro environment (Urabe., 2018). In consideration to Aston Martin, the
PESTEL analysis is mentioned below in order to understand the impact on the competitive
advantage of the company:
·Political Factors: These are those factors that play an important role in affecting the business
operation of the business organization in different ways. The major factors that are included in
political terms are law and order, stability in the government, democratic situation and many
more. In context to Aston Martin, the political governance system in which it is operating is

highly stable and strategies can also be applied effectively (Tao and Ang, 2019). Also, the
regulatory practices are simple which has helped the respective company to improve the ease of
performing the business operations.
·Economic factors: These are those factors that helps a business organization to create an
impact on the business operations in accordance to the potential attractiveness of the market
place. The main components of economic factors are mainly rate of inflation, GDP growth rate
and many more. In context to Aston Martin, the company can leverage the trend of higher GDP
growth rate of the economy through expanding the range of products and targeting a brand new
customer base.
·Social factors: These are the factors that helps in understanding the demographical trends and
other social summaries that affects the business organization and its operations. In relation to
Aston Martin, it should analyse the population distribution as it affects the sales of the company
considerably. Therefore, selecting the target are which is having high population will help the
company in increasing the level of sales considerably.
·Technological Factors: These are those factors that are affecting operations based on the
constant basis and high level of technological advancements. Thus it comes a competitive
pressure on the company to stay in the market. In context to Aston Martin, it can be considered
that the automobile industry majorly depends on the technologically advanced and innovative
products. Therefore, it is highly important for the respective company to take care of the
upgradations in the technologies in order to make cars which are highly advanced as well as safe.
·Environmental Factors: This is considered as an important factor because of the greater
awareness for the issues of climate change and changing eco systems is harming the environment
to a greater extent (Zhong and Nieminen., 2015).In context to Aston Martin, it is becoming
highly necessary to utilize the latest technology so that it can come up with such car products
which are majorly battery driven so that the emissions can be reduced extensively.
·Legal Factors: these are basically those factors that plays a major role in allowing accompany
or a business venture to enter in the market with complete compliance of the laws made by the
government. In consideration to Aston Martin, it is profoundly significant to take care of all the
tax and environment laws. If it fails to comply with the laws it may result into high penalties and
may also get banned in the respective country.

·Evaluate the competitive forces impact which influence profitability and entrepreneurial
activities within industry with support of Porter's five forces analysis
The impact of main competitive forces which influence entrepreneurial activities can be
analysed through porter's five forces analysis:
Bargaining power of buyers: It is that power which describes about number of buyers
are low as compared to number of suppliers in an industry. It means that it is easy to switch to
new and cheaper competitors which ultimately leads towards driving down prices. With
reference to Aston Martin, if the buyers have strong bargaining power then it usually tend
towards driving price down which limits the potential of company to earn sustainable profits
(Olofsson and et.al., 2018). If bargaining power is strong then it majorly impact the
entrepreneurial activities and profitability as well.
Threat of substitute products and services: It refers to those customers who finds a
different way of doing what they do. With respect to Aston Martin, if threat of substitutes are
high then it has to either continuously invest into research and development. If this factor is
strong then company has to take more efforts to stand strongly into the market.
Bargaining power of suppliers: Supplier power is always determined through how
much it is easy for suppliers to increase their prices.
When suppliers have more option to choose then it is easier to switch to cheaper
alternative whereas fewer suppliers have more reliability for help. The stronger the position is
and then there is ability to charge on higher aspect. In this way, it impact profitability. With
respect to Aston Martin, if suppliers have stronger bargaining power then it will extract higher
price from Aston company(Santos-Jaén and et.al., 2021). Suppliers have strong parameter then
company has to take more efforts in terms of maintaining good relationship with suppliers and
they have to made certain changes in their entrepreneurial activities.
Rivalry among existing players: Industry which face rivalry on higher basis then
companies attract customers on large scale by cutting prices into aggressive manner and launch
the high impact marketing campaigns. With respect to Aston Martin, it has many competitors
and competition level is very intense then it is challenging for players to earn sustainable profits.
(Tan., 2015). Company has to strategise themselves to stand strongly against their competitors.

Threat of new entrants: The position can be affected by people's ability to enter into the
market. If money required is in little amount and also take little efforts to enter into the market
then rivals can easily enter into the market and also weaken the position as well. If there is also
little protection for key technologies then rivals can easily enter into the market. With respect to
Aston Martin, if company faces threat of new entrants on higher basis then current players earn
less profits for reducing threat parameter(Tao and Ang., 2019).Due to threat of new entrants
company has to continuously work for their innovative factor.
·CONCLUSION
The above stated report concludes that strategy enterprise and innovation is very
important at organisational level. In order to analyse the internal environment of an organisation,
SWOT analysis act as key role for determining the results. It has been concluded that there are
certain factors of drivers of change in the external environment which will help in terms of
evaluating the impact of entrepreneurial activities of an organisation. It has been determined that
for evaluating the impact of main competitive forces which influence entrepreneurial activities
can be done through porters five forces analysis. Under this analysis there are certain forces
which are strong and some are weak which will impact the performance of an organisation.
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·REFERENCES
Books and Journals
Agostini and et.al., 2017. Does intellectual capital allow improving innovation performance? A
quantitative analysis in the SME context. Journal of Intellectual Capital.
Anthony, B. J. and Majid, M. A., 2016. Development of a Green ICT model for sustainable
enterprise strategy. Journal of Soft Computing and Decision Support Systems, 3(3), pp.1-
12.
Barsegyan and et.al., 2020, September. Modeling of a strategy for developing a lean
organizational structure for managing a petrochemical enterprise. In IOP Conference
Series: Materials Science and Engineering (Vol. 919, No. 5, p. 052044). IOP Publishing.
Chen and et.al., 2018. Holistic innovation: an emerging innovation paradigm. International
Journal of Innovation Studies, 2(1), pp.1-13.
Olofsson and et.al., 2018. Journey and impact of business model innovation: The case of a social
enterprise in the Scandinavian electricity retail market. Journal of cleaner
production, 175. pp.70-81.

Santos-Jaén and et.al., 2021. The impact of corporate social responsibility on innovation in small
and medium-sized enterprise s: The mediating role of debt terms and human
capital. Corporate Social Responsibility and Environmental Management.
Tan, J., 2015. What Factors Must a Social Enterprise Consider in Order to Obtain a Sustainable
Competitive Advantage Through Innovation?. OTAGO MANAGEMENT GRADUATE,
p.43.
Tao, L. and Ang, L., 2019. Enterprise Innovation and Environmental Performance——Based on
the Perspective of External Governance Environment. Journal of Industrial
Technological Economics.
Urabe, K., 2018. Innovation and the Japanese management system. In Innovation and
management (pp. 3-26). de Gruyter.
Zhong, J. and Nieminen, M., 2015. Resource-based co-innovation through platform ecosystem:
experiences of mobile payment innovation in China. Journal of Strategy and
Management.