Sustainable Business Strategy Research 2022

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SUSTAINABLE BUSINESS
STRATEGY
[Type the document subtitle]
8/23/2019
Student name

SUSTAINABLE BUSINESS STRATEGY 1
Contents
1. Introduction..................................................................................................................................3
2. Task 1: The Industry....................................................................................................................3
2.1 Porters five force....................................................................................................................3
The threat of new entrants.......................................................................................................3
Bargaining power of suppliers.................................................................................................4
Threat of substitute..................................................................................................................4
Industry rivalry........................................................................................................................4
2.2 Pestle......................................................................................................................................4
Political factors........................................................................................................................4
Economic factors.....................................................................................................................5
Social factors...........................................................................................................................5
Technological factors...............................................................................................................5
Legal factors............................................................................................................................5
Environmental factors..............................................................................................................6
2.3 Rolex......................................................................................................................................6
2.4 Growth opportunities.............................................................................................................6
3. Task 2 Sustainability....................................................................................................................7
3.1 Sustainability.........................................................................................................................7
3.2 Triple bottom line..................................................................................................................8
4. Task 3: Rolex’s dynamic capabilities.........................................................................................9
4.1 Value chain............................................................................................................................9
4.2 Financial position.................................................................................................................11
4.3 VRIO....................................................................................................................................12
Valuable.................................................................................................................................13
Rare........................................................................................................................................13
Imitable..................................................................................................................................14
Organization capability..........................................................................................................14
4.4 Dynamic capabilities...........................................................................................................14
4.5 Strategies..............................................................................................................................15

SUSTAINABLE BUSINESS STRATEGY 2
5. Task 4 Strategy evaluation.........................................................................................................15
5.1 TWOS matrix.......................................................................................................................15
5.2 Recommendations................................................................................................................16
Technology integration..........................................................................................................17
Personalization.......................................................................................................................17
New product development.....................................................................................................18
Shifting differentiation focus strategy to differentiation and leadership strategy.................18
Luxury event..........................................................................................................................20
Acquisition strategy...............................................................................................................20
6. Conclusion.................................................................................................................................21
References......................................................................................................................................22

SUSTAINABLE BUSINESS STRATEGY 3
1. Introduction
A strategy of a company is largely responsible for the achievement of vision and mission of the
company. For analyzing the strategy, it is important to understand the relevance of internal and
external environment of the company as a company is performing activities, which are reflected
by the factors in internal and external environment (Doole & Lowe, 2008). The objective of the
research is to analyze the sustainability of business strategy considering an organizational case,
for which the report will discuss analyzing the industry in which the company exists,
sustainability of the company, dynamic capabilities of the company and evaluating the strategy
in order to recommend new strategic options for the company. The industry considers for the
discussion is retail industry, for which the selected company is Rolex that is a luxury watches
brand (Herd et al., 2016).
2. Task 1: The Industry
2.1 Porters five force
The five forces depicted by this model reflect the impact of the force in the competitive
environment of the industry that reflects the industry attractiveness. The forces include
The threat of new entrants
Since Rolex is conducting business and offering luxury watches the threat of new entrants is
medium, the reason being the investment in the industry is quite huge and most importantly the
brand recognition is the major influence as per the customer preference.

SUSTAINABLE BUSINESS STRATEGY 4
Bargaining power of buyers The bargaining power of buyers are medium in case of luxury
watches industry, the reason being companies like Rolex are offering product differentiation for
which they are asking for premium prices and customers are ready to pay for the same (Dobbs,
2014).
Bargaining power of suppliers
Bargaining power of suppliers is low, the reason being luxury brands in watches industry is
having agile supply chain across the globe, and large numbers of suppliers are associated with
the brand. The key material includes Precious metals, precious stones, mother-of-pearl, stainless
steel, and ceramic (rolex, 2019).
Threat of substitute
The threat of substitute is medium in case of the luxury watch industry; the reason being one of
the major substitutes is premium mobile phones. However, brands like Rolex are able to reduce
this threat as the brand position reflects the status symbol of the customer (refreshbreeze, 2019).
Industry rivalry
The competition in the industry is very large as the direct competition include luxury watches
brand but the competition from medium range watches are also high like a fossil, Armani. The
two major competitors of Rolex around the globe are Patek Philippe and Tag Heuer (watchpro,
2019).
2.2 Pestle
Political factors
This factor includes policies and rules of the nation in which the company will conduct business.
For a luxury watches Industry, policies that will affect the business include the import policies,

SUSTAINABLE BUSINESS STRATEGY 5
taxes in the nation like 30% corporate tax in Australia (theglobaleconomy, 2019). However these
factors include effect of globalization which may be acting positively for the watch industry like
in case of Rolex (Ho, 2014).
Economic factors
This factor includes precious metal prices in case of watch Industry which impact majorly on the
business. GDP of a nation is another factor contributing to the customer demand for luxury
brands. Four examples the GDP of developed nations like United Nations are increasing which
reflect increase in demand for luxury brands and they picked opportunity for Rolex to conduct
business (Gay, 2016).
Social factors
These factors include culture, fashion trends in the nation. For example, preference to one kind
of precious stone is preferable in particular regions like gold in Dubai. The ethics also impact
this industry like in some of the society‘s blood diamond is considered as holy sin
(globalnegotiator, 2019).
Technological factors
Technology plays a major role in innovation and contemporary trends. This factor could be a
threat to the company as Rolex considered as prone to innovation when it comes to technology
(Judith & Steven, 2002).
Legal factors
These factors can be a threat to the company as there are various legal rules and regulations
which need to be applied by the company in every nation so as to maintain the sustainability and