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How the Strategy is Formulated In Introduction

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Added on  2021-02-21

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How the Strategy is formulated INTRODUCTION 1 PART B1 Porter's five force framework 1 Competitor Analysis 2 Resource Based Analysis 3 SWOT Analysis 4 REFERENCES 5 INTRODUCTION Strategy refers to the action plan which is prepared by the high management team of the organization for the purpose of achievement of the long term goals and objectives. It includes five competitive factors that affect business operations are as follows: Threat of new entrants Threat of new entrant bring more competition and gain market share. Supplier high bargaining power

How the Strategy is Formulated In Introduction

   Added on 2021-02-21

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Table of ContentsINTRODUCTION...........................................................................................................................1PART B ...........................................................................................................................................1Porter's five force framework......................................................................................................1Competitor Analysis....................................................................................................................2Resource Based Theory...............................................................................................................3SWOT Analysis...........................................................................................................................3CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5
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INTRODUCTIONStrategy refers to the action plan which is prepared by the high management team of theorganization for the purpose of achievement of the long term goals and objectives.Wesfarmers Limited Company is an Australian Company which was founded in year1914. This company is working under so many industries. Its headquarters is in Perth, Australia.This report will highlight the analysis of industry environment and application of porter'sfive forces model in the context of the company (Kock, Heising and Gemünden, 2015). It willapply competitor analysis, SWOT analysis and resources based theory. PART B Porter's five force frameworkThis model is given by Michael.E.Porter. The main purpose of this model is to evaluatecompetitive analyses in the market. It includes five competitive factors that affect businessoperations are as follows:Threat of new entrantsThreat of new entrant bring more competition and gain market share. There are differentbarriers that lead to entry of new entrant in the marketplace. Barrier in the market is less that leadto create differences in selling product into market. This lead to force current marketer to keepprices down for retaining customers for longer period (Spieth, Schneckenberg and Matzler,2016). As Wesfarmers is dealing in retail sector so there are chances of new entrant that bringmore competition. Bargaining Power of SuppliersThis emphasize that supplier is having more power and control over Wesfarmers. As it ispurchasing goods from different suppliers that depend on price of it. Suppliers bargaining poweraffect buyer as cost of product is high. Supplier high bargaining power increase competition thatlead to low profit and less growth in Wesfarmers limited company. Bargaining power of BuyersIn this competitive force consumer is exerting pressure on business to provide qualityproducts at cheaper rates. This affect objective of Wesfarmers. Lower switching cost lead toincrease consumers bargaining power and through this competition also raise in the marketplace.Consumers knowledge and price sensitivity increase buyer's bargaining power that affectWesfarmers business operations. 1
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