Got a tricky question? Receive an answer from students like you! Try us!

Business Strategy Questions / Value Chain Analysis - Essay Example

Only on StudentShare
College
Essay
Miscellaneous
Pages 6 (1506 words)

Summary

The competitive forces analysis is concerned with the external environment and the various stakeholders of the firm. According to Porter, there are five competitive forces in the environment of a business entity namely the suppliers, buyers, customers, potential entrants, and product substitutes…

Extract of sample
Business Strategy Questions / Value Chain Analysis

Strategic moves in countering rivalry are by changing prices, improving product differentiation, creatively using distribution channels, and exploiting relationship with suppliers.
Buyer power also has significant implications on the operation of a business entity. Accordingly, buyers are strong if they are concentrated; they purchase a significant purchase of output: and posses a credible backward integration threat.
Suppliers are other important stakeholders. Like buyers, stakeholders are strong if they are concentrated; have credible forward integration threat; there is significant cost to switch to other suppliers; and ironically, if their customers are strong.
Barriers to entry or exit are determined by specific factors like government regulations, existence of patents or proprietary knowledge, required specific assets, and organizational economies of scale. Entry is relatively easier if the industry requires common technology, little brand franchise, access to distribution channel, and low scale threshold. Exit is easy if assets are salable, exit costs are insignificant, and when business is independent.
The concept of environment analysis will be briefly applied to Vodafone Group PLC. ...
Download paper
Not exactly what you need?

Related Essays

Strategy Value Chain analysis
As per Value Chain Analysis there are specific activities that cumulatively determine the position of the company. These are the primary and secondary activities. Primary activities include inbound logistics, Operations, Outbound logistics, Marketing and sales and Service. The Support activities are Procurement, Human Resource Management, Technology Development and Firm Infrastructure. (Roberts, 134-35) The Value Chain Analysis of Michelin would be based on these criteria.…
3 pages (753 words)
Business Strategy term project
Agilent Technologies is a leading manufacturer of measurement devices in a variety of industries. It was formed through an IPO (initial public offering) from a spin-off of Hewlett Packard in 1999. The company website states the following about the company: "Agilent Technologies, a spin-off of Hewlett-Packard Company, broke records on Nov. 18, 1999 as the largest initial public offering (IPO) in Silicon Valley history. The US $2.1 billion raised from that IPO was a sharp contrast to the $538 in working capital that founders Bill Hewlett and Dave Packard began with in 1938. From a small garage…
22 pages (5522 words)
Marketing strategy: business organisation
The "market" was a place or location, present since ancient times in every town or city, where goods (foodstuff, clothes, shoes, etc.) were bought and sold. The term evolved in modern times into an important concept that management thinkers define as one that gives meaning to the existence of a business.…
8 pages (2008 words)
Strategy and International Business
Each style is different in its approach, can offer different advantages to the corporation, but has different strengths and weaknesses.…
12 pages (3012 words)