Analysis of Business Strategy: Porter's Five Forces & Resource View

This report provides a comprehensive analysis of business strategies, employing Porter's Five Forces model to assess the pharmaceutical industry with Ego Pharmaceuticals as a case study, examining the threats of new entrants, substitutes, supplier power, customer power, and industry rivalry. It further explores generic competitive strategies within the agricultural sector, focusing on Dairy Farmer organization and analyzing cost leadership, differentiation, and focus strategies. Additionally, the report delves into the resource-based view, using the tourism industry and Mantra Group to illustrate how resources, capabilities, competitive strategies, and market research contribute to competitive advantage. The analysis concludes by highlighting the importance of these strategic frameworks for business growth and competitive positioning, emphasizing the role of market research and resource management in achieving organizational goals. Desklib offers a wealth of similar solved assignments and past papers for students.

Assessment 1: Individual Assignment
Assessment 1 1

Table of Contents
Introduction...........................................................................................................................................3
Five force models..................................................................................................................................4
3 generic competitive strategy...............................................................................................................6
Resource-based view.............................................................................................................................8
Conclusion...........................................................................................................................................10
References...........................................................................................................................................11
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Introduction
In this assessment where is the discussion of Porter’s five force model. The pharmaceutical
industry is chosen for the analysis. The organisation taken for the analysis is Ego
Pharmaceuticals. After that in this assessment, there is the description of 3 generic strategic.
For the 3 Generic competitive strategy analysis, the agricultural industry is chosen. For the
better analysis, Dairy Farmer organisation is chosen as an organisation. After that, a resource-
based view analysis is made understood in this assignment. The tourism industry is chosen
for resource-based view for which organisation is chosen as an organisation.
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Five force models
There are the different types of factors that affect the business environment of the particular
business. For the analysis of Five force model, we have chosen a pharmaceutical industry.
Pharmaceutical industry used to provide a different type of chemical-based products. This
includes medicine and skin and healthcare products. For the better understanding of Five
force model, we have chosen ego Pharmaceutical as an organisation. Ego pharmaceuticals
used to provide skin care products to its customers. The Porter’s five force model is as
follows: -
Source: (Clayton, 2017)
Threat of entry
The Australian government is availing different opportunities and chances for the company to
get grow and develop in the market. The new organisations are also getting the chance to put
their efforts into the market. This is creating a threat and problem to the Ego Pharmaceutical
company to sustain and survive as new companies are bringing ad entering up with new ideas
and thoughts (Rothaermel, 2015).
Threats of substitute
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The substitutes in the market are in “n” numbers, this is providing the customer's various
options and choices (Ego Pharmaceuticals, 2018). This is threatening the company as if the
customers will switch to some other, then the performance and productivity of the firm will
fall down which is directly influencing the sustainability of the company in the market.
Bargaining power of suppliers
The suppliers as is demanded highly then there is a chance for it to raise the price of the
materials that is been offered by it to the Ego Pharmaceuticals company. The suppliers will
also be able to limit the quality and quantity of the materials that they offer. This will affect
the company to perform its activities in an appropriate way.
Bargaining power of customers
The customers are also having the power to bargain for the prices, as they know the market is
having various companies which will help the customers to attain what actually wants. This
will create a problem for the company as the customers may switch and will not retain for
long.
Industrial rivalry
Competition in the market is very high as in the existing market the many well-settled
companies are there which is needed to be understood and managed by the company, but due
to their strategies and plans the company is not able to perform the work in the effective and
right manner (Rothaermel, 2015). The threat is being faced by the company to stay for longer
period of time in the market.
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3 generic competitive strategy
This is one of the models that is been used by the companies to identify the competitive
strategies that is can be able to implement and use. With the effective use of this the firm will
be able to manage and carry out the work in an effective and most desirable manner. For this
analysis, we have chosen Dairy Farmer organisation. This company involved in providing
fresh milk, long life milk, and other dairy snacks to its customer. the 3 generic competitive
strategy analysis is as follows –
Source: (IfM, 2016)
Cost leadership
This is one of the strategies that company can use so that it can be able to carry out the work
in an effective an appropriate manner. The cost of this strategy will be get incurred very low
which will make the firm to be as a leader in the market (ImF, 2016). The cost here will get
managed in an appropriate way so that it will be helping the firm to set a standard for others
in the market to compete.
Differentiation
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This is the strategy where the company will be making and establishing itself in the market in
such a manner that all will recognize it and can easily be able to get differentiated by other
companies. This is a state when any firm is stated as a unique and different entity by all.
Focus
This is a strategy where the hybrid technique of both cost leadership and differentiation will
be used by the Dairy Farmer organisation (ImF, 2016). This is an effective approach as there
will be a synergy of both the aspect which will lead the firm to give tough competition to the
market and its competitors.
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Resource-based view
The resource-based view is the analysis of delivering the strategies that are being performed
for the business operations and functions. This can provide a comparison between the
different strategies that are being followed for the particular business. The capabilities of the
particular business can be understood get this. For the better analysis, we have chosen a
tourism industry. Tourism industry used to provide a temporary movement of the particular
person for the purpose of leisure, education, business, Healthcare services and enjoying the
hospitality. For the better understanding, we have chosen organisation Mantra Group as an
organisation. It is the Australian based hotel and resorts marketer and operator. The resource-
based view can be understood with the help of following points: -
(Figure: Resource-based view analysis)
(Source: Slide Share, 2018)
Resources
This organisation is having resources that can fulfil the strategies that are designed for this
organisation (Almarri & Gardiner, 2014). The different processes and the functioning of this
organisation can be fulfilled and accomplished in an effective manner with the help of
optimum resources that are present in this organisation.
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Capabilities
This organisation is having the capabilities to perform the different type of functions and the
operations that are you get the domain of its Industries. The employees of this organisation
are having the capability to perform the action so that optimum growth for the organisation
can be achievable (Mantra Group, 2018).
Competitive
The different strategies can be tested and followed one after another for the working and
functioning for the different goals of Mantra Group. The best-suited strategy for the particular
goal can be followed. This will help in attaining the competitive advantage for this
organisation. The pattern analysis of the competitors of this organisation can also be done so
that strategies can be implemented by the organisation accordingly. This will also help in
gaining and attaining the competitive advantage for this organisation (Almarri & Gardiner,
2014).
Strategies
Strategies are the main part of the implementation of different working and functioning of the
Mantra Group. For the better implementation of the strategies it is necessary for the
organisation that there should be proper research of the market and the current trends and
then the strategy can be applied (Mantra Group, 2018). This will help in the growth and
development of the business of this organisation.
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Conclusion
It can be concluded that Porter five forces analysis can be helpful in understanding the factors
that are affecting greatly to the Ego pharmaceuticals. With the help of the factors, different
strategies can be made that can be helpful for the business growth. 3 generic competitive
strategic analysis for the Dairy Farmer can give the path onto which this company have to
move on so that constructive measures can be implemented. The resource-based view can
provide the method of implementation of the strategies in a comparative way according to the
presence of resources with Mantra Group.
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References
 Almarri, K., & Gardiner, P. (2014). Application of resource-based view to project
management research: supporters and opponents. Procedia-Social and Behavioral
Sciences, 119, 437-445.
 Ayub, A., Adeel, R., Muhammad, S. A., & Hanan, I. (2013). A conceptual framework
on evaluating 3 GENERIC COMPETITIVE STRATEGY analyses as the mediator in
strategic marketing planning through marketing intelligence. European Journal of
Business and Social Sciences, 2(1), 91-98.
 Clayton, M. (2017). PORTER FIVE FORCES ANALYSIS. [Online]. Management
pocket book. Available at: https://www.pocketbook.co.uk/blog/tag/porter-five-forces-
analysis/. [Accessed: 17th April 2018].
 Dairy Farmers. (2018). Our History. [Online] Dairy Farmers. Available at:
http://www.dairyfarmers.com.au/our-history. [Accessed on: 16 April 2018].
 Ego Farmers. (2018). Our Story. [Online] Ego Farmers. Available at:
http://www.egopharm.com/about-us/. [Accessed on: 16 April 2018].
 ImF. (2016). Porter's Generic Competitive Strategies (ways of competing). [Online]
IMF. Available at: https://www.ifm.eng.cam.ac.uk/research/dstools/porters-generic-
competitive-strategies/. [Accessed: 17th April 2018].
 Mantra Group. (2018). Who is Mantra Group?. [Online] Mantra Group. Available at:
https://www.mantragroup.com.au/About-Us.aspx. [Accessed on: 16 April 2018].
 Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.
 Slide Share. (2018). Resources based view. [Online] Slide Share. Available at:
https://www.slideshare.net/retnonoey/resources-based-view. [Accessed on: 16 April
2018].
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