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Techniques and Strategies PDF

Added on - 03 Jun 2020

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Abbott, R. J., 2015. Pestle Analysis for Students. Sage.Donovan, J., 2015. Guides for value chain development: a comparative review.Journal of Agribusiness in Developingand Emerging Economies. 5(1). pp.2-23.Gamlath, S. L., 2014. Outcomes and observations of an extended accounting board game.Developments in BusinessSimulation and Experiential Learning. Pp.34.In order to analysis competitive advantage company needs to adopt this five forcesmodel to determine the competitive advantages to carry out the structure analysis ofthe business. This tool or technique helps to measure the different aspects or factorswhich may affect the overall company objectives of VOLKSWAGEN.Threats of substitutionThis is the first factor of five forces which defines the importance ofsubstitution product and services which affects the company services.VOLKSWAGEN needs to adopt more techniques and strategies for their clients inorder to retain those clients and buyers. Moreover, VOLKSWAGEN needs to openmore companies in across the world to expand the business activities and profitrevenue as well. It is very easier for the client to adopt services from any of theconsulting firm which provides their services at low price. So that, it is veryimportant for the organization to follows the correct path and make itself morecompletive in among others. Besides, VOLKSWAGEN should provide bestconsulting services to their clients in order to get maximum satisfaction level.Threat of new EntrantsEntrants of new company may occur big issue for the existing ones. This factor affects the overallindustry and individual firms in order to get profit revenue. For that, VOLKSWAGEN Company needsenhance the overall performance of the company to create challenges and competitive environment in theexisting market. This factor involves risk which affects the company policies and strategies. Like other rivalcompanies and its service strategies give heavy losses to the other companies as well. In order to fill the gap.Organisation needs to adopt the latest techniques and client’s needs and wants. This process helpsVOLKSWAGEN to attract large number of customers towards the company services.POWEROFBUYERS:It is another driver forces which impact on the company functions. It is another factorwhich described as the market of outputs. It gives impact on the customer sensitivity to price changes.VOLKSWAGEN needs to adopt serious measures to reduce the buyer power, like adopt higher quality ofluxurious services with four wheelers and give them the best unique services in order to reduce the power.Competitive RivalryThis factor of five forces helps to examine the current competitive ratio in the market. This ratiodefines that how many companies supply the same product and services at various process. This helpscompany to set their own prices and strategies in order to get competitive advantages. VOLKSWAGENneeds to adopt the latest technologies which makes company different from others and provide bestservices to the clients. Moreover, this factor helps company to measure the external environment in order tomake best services and plans.Bargaining Power of suppliersThis is the other important factor for the company in order to bargain with the suppliers in orderto minimize the additional cost and expenses. Furthermore, it requires some short skills and knowledge todeal with the suppliers. When number of buyers are more and number of suppliers is less in that conditionsuppliers charge their own price and when supplier are more and number of companies are less in thatsituation buyers decide the price of the services or products. Business has benefit when there are multiplesuppliers are available.Porters Five Forces Analysis
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