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A critical assessment of marketing analysis tools - Essay Example
Pages 5 (1255 words)
Companies are often challenged externally or internally to examine their positioning in the given marketplace, business or industry. To complement this, a multitude of models and theories have been established …
The intention is to evaluate, develop as well as disseminate the competitive advantages for an organization. In the current study two competitive strategies have been critically evaluated. Porter’s five forces model The configuration of porter’s five forces differs from industry to industry. In commercial aircraft market, rivalry is strong among dominant producers Boeing and Airbus as bargaining power is strong, while threat of substitutes and threat of entry and supplier power is less. In sector of Movie Theatre, substitute entertainments forms are proliferated as power of distributors as well as dominant movie producers are important. The competitive force which is strongest determines industry profitability and becomes crucial for strategy formulation (Porter, 2004) Economy has become more dynamic as well as volatile, and strategies require moving beyond conventional ideas of positioning and competition while understanding profitability and industry competition (Porter, 1980; Hubbard and Beamish, 2011). In order to describe the five basic forces of competition, economist and professor, Micheal E. Porter created a model which can be considered by companies while developing and implementing business strategies (Porter 2008). The various forces constituting micro level external environment were supplier power, threat of new entry, customers or buyer power, substitute power as well as competitive rivalry (Grant, 2011). ...
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