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Discuss Porter's five forces determining industry attractiveness
Discuss Porter's five forces determining industry attractiveness
Business level and corporate level strategies
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6.0 Strategic Analysis
6.1 Business – Level Strategy
The Business level strategies introduced by Michael porter (1996) to overcome the five forces and achieve competitive advantage can be found below. Tesco’s key to success was their ability to implement “Cost-Leadership” successfully and outperform main rivals during years 1990-2000. However this strategy is no longer advantageous given the size at which Tesco operates. They have expanded globally increasing operating costs and decreasing profit margin. The matured and saturated UK supermarket industry has forced main players to use mixture of “cost-Leadership” and “Differentiation” to remain competitive. This strategy is also known as “Hybrid” Strategy where a business aims to differentiate while keeping their costs low. Tesco were able to recognise the benefits and necessity of combining two strategies and started expanding in Non-food market including bank, insurance, clothing and various other markets. (Tesco Corporate. 2008). Within grocery products Tesco differentiated by using three-tier branding system, which includes i...
Tesco PLC's Expansion in North Bracknell Introduction: Tesco PLC is an international supermarket not only selling high quality goods but has now also become one of the biggest job markets. As well as this Tesco has been running sub-projects to increase the level of customer care. [IMAGE] Tesco's main aims are shown by the steering wheel provided by their website (www.tesco.com). Tesco want to have good quality for value to earn their customers loyalty while still making a profit. I will be investigating the Tesco Superstore, petrol station, pharmacy and coffee shop in North Bracknell (Warfield).
Tesco’s objective is to be the ‘champion for customers’, and they want to achieve this by being number one in customer satisfaction. They want to grow globally and by doing this they ‘create value for customers to earn their lifetime loyalty’. Tesco is
It depends on the company, which strategy they would fellow- comparing their competitors’ strategy. It does not matter whether the follow cost leadership or differentiation strategy, they must manage their own value chain.
This critical review will look at the skill of administering antipsychotic depot intramuscular injections. This skill was practised while I was on my psychiatric placement in a community setting. The setting will not be named for confidentiality reasons as set out by An Bord Altranais. According to An Bord Altranais (2008), under no circumstances may a student nurse disclose a health care facility’s identity in an assignment. Clinics were run twice a week in this particular community setting for patients with mental health problems such as schizophrenia and bipolar affective disorder to receive their depot intramuscular injections. This skill was chosen as the author was practising administering intramuscular injections almost on a daily basis but there is confusion around what is the best practice for administering depot intramuscular injections in the mental health setting.
Porter (1997) suggests in order to gain competitive advantages in the changing business environment, it is essential to design a generic strategy for the business: product differentiation or cost leadership. The competitive strategy is determined at round 2, when recognised our rivals held whole product profile which was the product differentiation strategy. To differentiate our strategy from rivals for competitive advantages, Digby designed to imply the cost
America has evolved over the centuries, from a British colony to an international powerhouse. At one point, the U.S was considered the greatest country in the world. America always found solutions to problems, and tried to help make peace throughout the world, but now that is up to debate. Why? The answer is simple, the government. The dishonesty and bad decisions have resulted in America’s title as a superpower to waver. The government is a growing problem that may lead to the demise of America by negatively affecting political, social, and economic issues in the country.
Business strategy is the means by which firm’s plans to achieve its goals and objectives. It can also be termed as organization long-term planning. The strategy covers periods between 3-5 years and sometimes longer. Businesses use two major types of strategy, general or generic and competitive strategies. The overall strategy involves strategies of growth, globalization and retrenchment. The competitive advantage includes low pricing, product and customer differentiation. We will look at the business strategy used by Marks and Spenser (Cole, 1997). The company is a British multinational located at Westminster London and specializes in clothes and luxurious food products.
Over the years, Tesco has recorded growth which has been achieved through different strategies. The company has adopted its growth strategy which has been implemented in four different parts. One has been emphasis on the growth of Core UK business in order to expand internationally. This growth has allowed that company to position itself in food and nonfood sectors based on retailing services. Over the years, the company has witnessed financial fortunes which have been reflected in its growing sales.
Costco is one of the companies that have started from humble beginnings to become one of the most recognized institutions in the wholesale industry. Based on the Costco case, there are valuable lessons I have learned and the look of things is that Costco is here to stay. One of the insights I have gained from the Costco case is that organizations should understand their value chains and focus on their strengths to drive competitiveness. Another lesson that I have learned is that information technology can be used by organizations to improve their levels of competitiveness. Also, the Costco case study has enabled me to realize that the management of organizations should constantly evaluate the impacts of the strategies they employ because it is through such evaluations that the best practices can be adopted to improve the performances. Costco has applied these aspects in its different areas of operations, and they have advanced the organization since its inception days to present. From the strategic management practices, the organization has grown from strength to
The case looks at prescriptive strategy as applied to multi-product group of companies. Unilever is based in over a hundred countries where multiple products are being made in each. However, the market is mature which means that growth is stagnant and innovation is almost non-existent. In order to improve on growth and sales, the strategies that are needed look at how to come up with new products that have high profit margins and penetrate new markets. The prescriptive approach was used to come with a strategy to improve growth and profit. In order to improve on innovation, both the prescriptive and emergent strategies can be used since both support innovation. From the case study, not much profit was made when the ‘Path to Growth’ strategy was first implemented (2001-2004). The strategy was initially based on cost cutting. There was a need to also build volumes through existing portfolio of branded products through innovation and marketing. By focusing on increasing sales in developing countries where growth prospects were high and increasing investment in personal care products where profit margins were higher, it was possible to improve the profit portfolio.
Studies and analyses regarding variations between companies performing higher or lower regarding their marketing practices has helped out to assure that a central textbook marketing strategy principle; which is to achieve success regarding that in the long term the products and services of a firm have to be well ‘positioned’ in the market. This paper aims to highlight the common formulations or ‘anatomies’ for strategies and the isolation of some of the most important inclusions that were thought to be really important in achieving success. Just to bring some “flesh on the bones”, this article examines the method through which theory is translated into practice.
However a continuous rise in globalisation could be presented as a challenge for Sainsbury’s. One of the biggest economic factors is the rising costs of fuel which will impact right through the supply chain of Sainsbury’s leading to increase of its products. Social factors to consider due to increase in trend in healthy foods, so for Sainsbury’s to keep up with trends, it would be something to consider. The use of technology for great retailers such as Sainsbury’s is an important factor, persistent upgrading of technologies such as self-checkouts, computerised stock control etc., means less room for human errors. Concerning environmental, reducing carbon footprint is emphasised to big companies. “Companies like Sainsbury’s can contribute a lot of impact on the environment. To do this Sainsbury’s would have to put in more towards the green issue” (UK Essay 2014) Legally, Sainsbury’s would have to make sure to follow policies concerning label and packaging which could be an added financial load to Sainsbury’s. Sainsbury’s should act on its threats, to achieve its goals and
For organisations to be truly marketed-orientated they must exceed the value offered by their competitors; and at the same time, the overall goals of the organisation must be achieved. Additionally, for marketing to be carried out effectively and efficiently throughout the organisation, then it must involve analysing, planning, implementation, and control (Kottler and Armstrong, 2012). According to Kottler and Armstrong (2012, p. 5), the modern marketing concept can be expressed as “the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return”. Tesco’s, it appears, may have managed to successfully achieve this.
In the Grocery industry today there are 4 major companies that dominate the United States market share; Kroger, Safeway, Super value and Publix. With the competitive advantage of being the largest stores in the industry these retail giants should have competition at a minimum and should be thriving (Farfan, US Largest Retail Supermarkets - Complete List). The application of Porter’s Five Forces that influence an industry shows that these retailers do have many advantages but being vulnerable in even one of the areas can make a significant difference in market share and profitability.
Bibliography: Lawson, A. (2013). Analysis: Is Asda’s five-year strategy the right one?. [Online] Retail-week.com. Available at: http://www.retail-week.com/sectors/food/analysis-is-asdas-five-year-strategy-the-right-one/5054989.article [Accessed 23 Jan.