Question

In: Operations Management

Identify forces that shape competition in a company’s external environment and discuss techniques for identifying strategic...

Identify forces that shape competition in a company’s external environment and discuss techniques for identifying strategic opportunities and threats./ defines industry, sector, market segments/ forces that shape competition in a company’s industry environment, using Porter’s Five Forces Model/concepts of strategic groups and mobility barriers/Industry Life-Cycle Analysis

Solutions

Expert Solution

The different external forces are as below=

Bargaining power of the customers= This is an important aspect of the external factors that determine the level of competition in a certain industry. Greater the bargaining power of the customers, the lesser will be the industry attractiveness and thus the level of the competition will be lower and vice versa.

Bargaining power of the suppliers= Suppliers facilitate the necessary parts, equipment and raw material. If there are less number of suppliers then they will have higher bargaining power and thus will impact the level of competition in the industry

The threat of new entrants= If there are not enough entry barriers the chances of new entrants are quite high and thus the competition level will be high.

The threat of substitute products= If the product can easily be replaced by the other service, the competition level in the industry will be quite high.

Rivalry among the player= If the level of competition among the existing players in the industry is high and they target the same customer segment then the level of competition will be quite high.

The different methods that can be used to analyze this level of competition are stated as below=

Industry life cycle =This method is used to find out the stage in which a certain industry is operating There are mainly 4 stages in which a certain industry can operate these are introduction, growth, consolidation and finally extinction. The level of competition in each phase of the cycle will vary and therefore the management has to employ new methods to deal with the competition

Porter's Five Forces model=it is a model that is usually employed in order to find out the five important competitive factors that can determine the level of competition in a given industry. With the help of this model, the management can identify the strengths and weaknesses of the given industry. This is an important model to find out the structure of the industry so that the companies can develop corporate strategies.


Related Solutions

Strategic planning in dynamic environment 5. Identify Porter’s five competitive forces and explain how they determine...
Strategic planning in dynamic environment 5. Identify Porter’s five competitive forces and explain how they determine industry profit potential / attractiveness
Identify and discuss the possible challenges in the environment (both internal and external )that may affect...
Identify and discuss the possible challenges in the environment (both internal and external )that may affect the organisation`s competiveness in the market The points should be at least 4 in internal and 4 in external
The forces exerted by the limbs of our body on external objects in the environment are...
The forces exerted by the limbs of our body on external objects in the environment are often much smaller than the force exerted by the muscle on the limbs. Use a suitable equation to explain the above statement
External Analysis Evaluate the underlying structure of the Footwear Industry and the forces that shape competitive...
External Analysis Evaluate the underlying structure of the Footwear Industry and the forces that shape competitive interaction. Choose three of Porter’s 5 Forces that you feel are most important to the Footwear Industry.For each Force, explain why you feel that force is critical for industry health and profitability (minimum of 100 words for each force).
Comment on the interrelationship between external forces such as globalization, economics, technology, and the environment, and...
Comment on the interrelationship between external forces such as globalization, economics, technology, and the environment, and internal influences on business and society including governance and corporate citizenship (CSR), consumer protection, employee rights and responsibilities, and workplace diversity. Remember to support your argument with multiple examples such as sample journal entries, and readings. . Please provide refernces as well
Question 2: (A) Marketing Environment is the combination of external and internal factors and forces which...
Question 2: (A) Marketing Environment is the combination of external and internal factors and forces which affect the company’s ability to establish a relationship and serve its customers. How the Marketing environmental influences and affect the business located in the UAE country. Explain in your own word with an example? (5 Marks, Word Limit 200-350) (B) Together partnership firm producing and selling different high quality daily necessary goods like milk products, fancy products, soft drinks etc. at high price compared...
1.    List and explain at least two forces of the external environment (General or Industry) that are...
1.    List and explain at least two forces of the external environment (General or Industry) that are causing all companies --not just Volkswagen-- to become more sensitive to environmental issues. 2.    Before the scandal, what was Volkswagen's apparent position on the environment, and what did the company do to ensure that stakeholders (i.e., customers, employees, society) knew this position? -List at least two ways in which VW communicated this stance to stakeholders 3.    Based on the industry forces, describe the nature of competition...
Analyzing competition is considered as a major part of the external environment analysis. Apply the different...
Analyzing competition is considered as a major part of the external environment analysis. Apply the different level of competitive environment analysis on a company of your choice within the following industries (Dairy, Telecommunication, or Fashion.)
Management Question 1. Identify the five forces that underlie Porter’s five forces model of competition. 2....
Management Question 1. Identify the five forces that underlie Porter’s five forces model of competition. 2. Analyse the industry structure of the public transport industry in Hong Kong and assess its attractiveness with Porter’s Five Forces model. 3. In the study of strategic management, the ‘resource-based view’ is one of the main approaches taken by scholars. a. What is the resource-based view (RBV)? Define and explain the terms ‘resource’, ‘capability’ and ‘competitive advantage’. b According to the resource-based view, there...
Discuss the three factors causing uncertainty in the external environment, and based on that, Discuss the...
Discuss the three factors causing uncertainty in the external environment, and based on that, Discuss the relationship between environmental uncertainty and organizational structure in terms of integration, differentiation, centralization and mutual adjustment.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT