Strategic Management Analysis: Reflective Essay on Porter's Framework

This essay provides a reflective analysis of strategic management principles, focusing on Porter's Five Forces framework and its application in understanding industry dynamics. It discusses the five forces—threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitutes, and rivalry among existing competitors—and their impact on organizational strategy and profitability. The essay also highlights the development of leadership skills through strategic management analysis and explores ways to implement these skills in a workplace setting, specifically within the context of Petroleum Development Oman. The conclusion emphasizes the importance of strategic management for organizational success and the insights gained from using Porter's framework for industry analysis.

Running head: STRATEGIC MANAGEMENT ANALYSIS
STRATEGIC MANAGEMENT ANALYSIS
Name of the Student
Name of the University
Author Note

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Introduction
As discussed by Aghazadeh (2015), strategic management is mainly based on the
process of continuous planning, analysis, monitoring and further assessment of different
necessary factors that can help the organization to the meet the objectives and goals. Strategic
management is also helpful in the formulation and implementation of different initiatives and
goals which are undertaken by the top management. An overall direction is provided to the
organization based on the ways by which it is able to fulfil different objectives and further
develop the plans and policies which are required for the purpose of fulfilling the objectives
as well.
According to Albers, Wohlgezogen and Zajac (2016), the process of proper resource
allocation is also based on the implementation of proper strategic management based process
that is developed by the modern organizations. Many different tools and frameworks are
implemented by the organizations for the purpose of proper strategic management. The
process involves proper analysis of the external as well as the internal environment in which
the organization operates. The different strategic management based tools that are used by the
organizations include, PESTEL analysis, SWOT analysis, Business idea analysis, Blue Ocean
Strategy, TOWS matrix model, 5 Forces theory, Capabilities and resources analysis and value
chain analysis.
I have been a part of the group assignment that has been completed based on the
implementation of the different strategic management based tools that have been mentioned
above. The group assignment was mainly based on the organization named Oman Air. The
internal environment, external environment and the industry of the organization have been
analysed in detail. The major theory that has been able to deepen my understanding based on
the concept of strategic management is Porter’s five forces framework (Ansoff et al. 2019).

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Reflective analysis based on Porter’s five forces framework and its usage
As discussed by Bao (2015), Porter’s five forces framework is used as an analysis
based tool that considers the five major industry based forces that have an impact on the
operations of an organization in a particular industry. The intensity and levels of competition
that are faced by the organization in the industry are considered in the analysis. The
framework was developed by M. Porter in the year 1970 in order to understand the five
competitive forces that are able to influence the industry. The forces are able to play a major
role in proper determination of structure that has been developed in the industry.
According to Baumgartner and Rauter (2017), the levels of competitiveness within the
industry are able to affect the profitability of different organizations. The industry that has
low barriers consists of few suppliers and buyers as well. The competitiveness of the industry
in this case can be considered to be quite low. The competitive position of an organization
needs to be determined by the strategists in order to stay profitable and to maintain
sustainable operations as well. The five major forces and their effects on the levels of my
understanding can be analysed with the help of proper study of each of forces.
Threats based on new entrants – As discussed by Cosenz and Noto (2016), the force
is able to determine the ease with which an organization is able to enter the industry and the
barriers that have to be faced in the process as well. A profitable industry will provide huge
number of barriers, whereas, on the other hand, an industry that is not highly profitable in
nature will provide lesser barriers that are based on the entry of new organizations. I have
learned that is force can be considered to be necessary for the proper analysis of barriers that
can be faced before the organization is able to enter the industry. The barriers that are related
to entry of new organizations can have an impact on the operations of the organizations that

3STRATEGIC MANAGEMENT ANALYSIS
are currently operating in the industry and those organizations that wish to enter the industry
as well.
Bargaining power of the suppliers – As opined by David and David (2016), the
strong bargaining based power of the suppliers can affect the prices of raw materials that are
provided to the organizations. The quality of raw materials is also affected by the bargaining
based power that has been developed by the suppliers. The supplier power is able to affect the
profits of the organization in a direct manner as they have to pay more for the materials that
are supplied to them. I have been able to learn that the proper operations of an organization
are dependent on the supplier base that has been developed in the industry.
According to Engert, Rauter and Baumgartner (2016), the prices of different raw
materials can be considered to be the most important factor that has an impact on the
production based facilities of the organizations. I have also been able to understand that the
suppliers acquire the most significant position in different industries for the organizations.
The number of suppliers in the industry are important factors which can influence the power
that the organizations have gained.
Bargaining power of the buyers – As discussed by Hanson et al. (2016) The buyers
in the industries have immense levels of power and have an influence on the prices of
different products as well. The organizations are able to set the prices of different products
with respect to the needs and demands of the buyers. In this case, I have been able to learn
that the buyers can affect prices of the products and profitability of the organization.
According to Helfat and Martin (2015), the profitability levels are influenced by the buyers
and their power increase the costs that are based on production as well. The buyers in
different industries are also considered to be highly price sensitive in nature and the number
of consumers in the industry is helpful in deciding the levels of power that have been gained.

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Threats based on substitutes – As discussed by Hitt, Ireland and Hoskisson (2016),
the substitutes of the products of different organizations that are already operating in the
industry are able to affect the choice of consumers in a huge manner. The price and quality of
the products are the two important factors that can influence the power of the substitutes in
the industry. The levels of price based competition that are provided by the substitutes of the
products are important factors which have an impact on the prices. I have been able to learn
that the substitute products are major factors that have a major impact on the competition
which is faced by the organizations in their respective industries.
Rivalry among the existing competitors – As opined by Lee et al. (2016), the rivalry
based force is a major determinant of the levels of profitability and competitiveness of the
industry in which the organizations operate. The organizations that operate in a competitive
industry need to compete in an aggressive manner for the purpose of gaining a share in the
market. The profitability levels of the organizations have been affected in an adverse manner
by the levels of competitiveness that are experienced.
I have been able to learn from the study of different types of organizations that the
organizations need to face high levels of competition in the industry in order to establish a
sustainable position. The levels of sustainability of the operations are considered to be major
factors that can affect the competition that is faced by different organizations. The customers
and their loyalty levels can also affect the ways by which organizations face the levels of
competition that already exist in the industry (Phillips and Moutinho 2017).
A major insight that has been gained by me from the usage of Porter’s five forces
framework as a strategic management based tool is that the industry in which an organization
operates has an impact on the ways by which strategies are developed. The industry based
factors are able to play a major role in the profitability and revenues that are gained by the

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organization. Porter’s framework is able to provide an effective analysis of the forces that
have the highest level of impact on the operations of modern companies. The strategists are
provided with maximum levels of support from the proper analysis of different external
industry based factors (Phillips and Moutinho 2017).
One new skill developed and identified in the workplace
As discussed by Prajogo (2016), a major skill that has been developed by me in the
process of proper strategic management based analysis is strong leadership. The leadership
skills that have been developed by me in the industry is based on the common goals and
objectives that have been set by the organization in order to continue its profitable operations.
The implementation of different strategic management tools has been able to provide an
opportunity based on the ways by which different decisions can be made by the leaders of the
organizations.
As opined by Slater (2015), the effects of proper strategic planning on the
organizational operations are considered to be important factors that can affect the leadership
based process. The skill that has been developed by me is mainly based on the accountability
levels of the employees and the managers based on proper levels of inspiration, motivation
and also ensuring the accountability of the employees as well. The leadership skills which
have been formed by me can have an impact on the decisions that have are made based on the
proper development of strategies and skills in order to achieve different organizational goals
and objectives as well.
Ways of implementing the skill in the workplace
I am currently working in the Human Resource Department in the Petroleum
Development Oman. The leadership skills which have been formed by me can be helpful for

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my future work process in the organization. The culture of the organization is quite
traditional in nature and leaders play a major role in the process of strategy development. The
strategies of the organization are formed based on the analysis of the environment in which it
operates. The external organizational environment is able to play a key role in the
development of proper strategies (Wheelen et al. 2017).
As discussed by Hitt, Ireland and Hoskisson (2016), the strategies need to be
developed in a such a manner which can help in increasing the levels of profitability and
revenues as well. I will be able to take part in the decision making and lead my team in the
organization in an effective manner with the help of leadership skills that have been gained
by me. Leadership skills can be considered to be a major factor that has an impact on the
ways by which effective strategies can be developed by the organization. My leadership
based skills will also be able to contribute in a huge manner in the proper formation of
effective strategies by the organization.
As opined by Engert, Rauter and Baumgartner (2016), the strategies will be based on
the marketing activities of the organization and different other aspects that can have an
impact on the ways by which it is able to continue its operations in the oil and gas based
industry. The leadership skill will also help me to understand and analyse the industry in
which my organization operates. The different forces which can have an impact on my
organization can be examined by me in an effective manner.
Conclusion
The essay can be concluded by stating that the process of strategic management can
have an impact on the successful operations of modern organizations. The Porter’s five forces
framework has been considered for analysis in the essay. This framework is able to provide
major insights based on the industry in which an organization operates. The five major forces

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that have an impact on the revenues and levels of profitability of the organizations are
analysed with the help of this framework. The skill that has been gained by me is based on
leadership in the organization. The leadership skills gained by me is considered to be an
important factor which will be able to improve my contribution that can be provided to the
organization.

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