Business Analysis of Pridana

Business creates a competitive strategy that is built on and exploits its strength and overcomes for its weaknesses. Strength is positive internal factors that contribute the accomplishment of Pridana’s mission, goal and objectives. Weaknesses are negative internal factors that inhibit the accomplishment of its mission, goal and objectives.
4.4.3 External Environment analysis
The external refers to microenvironment and macroenvironment and also on opportunities and threats of the business.
4.4.3.1 Microenvironment
The firm in a given industry uses a particular competence. Technology, product or service to satisfy customer needs. In microenvironment can be suppliers, marketing intermediaries, customers, competitors and publics. According to Porter (1980), the stronger any of the forces mentioned below, the more limited is the ability of the company to reap greater profit or achieve a better market share.

Figure 6: Porter’s five forces
1. Bargaining power of supplier: low, the owner determines the number of products to be supplied and at what specific times and periods.
2. Bargaining power of buyer: medium, customers the type of product they needs and Miss Prida provide all the necessary food to satisfy their needs.

3. Barriers to entry: High risk other competitors may enter the market, but cots in doing so, they to accept the price placed by the business.

4. Rivalry against other firms: low, there are no distant enterprises similar as Miss Prida regarded as a major competitor for PEL. The intensity of rivalry is low. Because they do not bother about what the strategy the other competitors are implementing.

5. Threats of substitute’s products and services: High, this implies can adopt a strategy to specialize only in food s...

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...n concerning the secrecy of the PEL cannot be shared for instance, profitability trends and margin.

4. Differentiation Focus
Scenario 1: Maintain fidelity with buyers. Devise customized services to satisfy their needs
Scenario 2: Create alliances with other industry in the same field of production if any develops in future, share their vision and missions alongside to prove competitiveness against big industries.
Scenario 3: Devise a mixing of brand name and features or add-on to prove efficiency in the market.
RISKS
Cost leadership can be adopted by competitors because of emerging technologies. Differentiation in strategy can be easily used by competitor in future to counter attack. This will discourage certain buyers and suppliers if it is the case. As this might cause drastic change in prices for buyers and suppliers might be willing to supply to competitors