Question

In a one-page write-up (approx. 500 words), elaborate on your understanding of the role of external assessment on an organization’s stages of strategy formulation, implementation and evaluation. Explain your position on the various dimensions and forces of the environment, and in particular, M. Porter’s 5-forces model through examples from the organization you work for (if applicable).

Answer 1

Organisations stages of assessment and evaluation are extremely important to understand its core competitive strengths and critical success factors through which it can exoand. It also helps understand strengths, weakness and opportunity threats to an extent to reformulate new strategies

Organisations like Samsung have been showcased and analysed below :

Five Forces Analysis:

Bargaining power of Suppliers - Many suppliers in this segments offer low cost services which means bargaining power is less for suppliers.
Bargaining power of buyers- Sijce Samsung operates either in perfectly competitive market or Oligopolistic market across globe, buyers have higher choices and hence higher power.
Threat of New Entrants- Since new entries from lowcost Chinese providers can eat up Samsungs share due to ease of taxation and licensing, threat is higher substantially.
Threat of rivalry between existing firms- This is comparatively very high as margins are wafee thin and innovation is constantly evolving making it difficult for the industry as whole.
Barriers to entry- Large initial investment, high marketing and distribution spends, constant innovation are biggest barriers.

Pestel Analysis :

Political - India, South and North Korea ar emost errant markets with high taxation and compliance and warfare tensions.
Economic - global economic degrowth and stagnant growth in mature markets is cause for worry.
Socio cultural - changing consumers preference and strong core culture is what Samsung has coped up with and reoriented itself across global markets to stay ahead of curve.
Technological - Wide-spread innovative solutions from competitors like Apple, Huawei, Vivo, Oppo, Xiaomi have threatened Samsung and portfolios. However Samsung has been fast mover and easily stays ahead of curve with its unparalleled premium segment and upscale technologies which competitors match too lately.
Legal- the recall of Samsung S9 has been highest litigation based loss because of malfunctioning and lack of quality checks and also copyright infringement issues with Apple make it very cumbersome and difficult to deal with.
Environmental - the organisations has been keen ethical player and truly abides environmental laws.

Strengths

Global brand image
Economies of scale and cost leadership
Highest patent growth
Innovation and design capability

Weakness

High dependent on OEM
Product cannibalization due to less differentiation
Focus majorly on high prices and premium segment

Opportunity

Tieups with Telecommunications operators for handset SIM selling
Focus on rural markets
Focus on low price segment
Focussing on diversified products like smartwatches, IoT products, Smart sensors, Smart devices

Threat

Chinese products and hypercompetition
Uncertainty in government policies
High taxation
Retail markets collaboration with low cost players and private labels.

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