Question

Choose one existing incumbent that is being beaten by a challenger in business. In other words, identify and choose one incumbent that is struggling to survive in the market. Conduct a thorough analysis of the current conditions of this incumbent by referring to following relevant strategic analysis frameworks:

1. Porter’s Five Forces Model (refer to lecture 7) a. Degree of existing rivalry b. Threat of potential entrants c. Bargaining power of suppliers d. Bargaining powers of buyers e. Threat of substitutes

2. Stakeholders analysis (refer to lecture 7) a. Strategic stakeholder analysis b. Normative stakeholder analysis

3. Porter’s Value Chain Model (refer to lecture 7) a. Primary activities b. Support activities

4. PESTEL (Political, Economic, Social, Technological, Environmental, Legal),

5. SWOT (Strength, Weaknesses, Opportunities and Threats)

6. Technology cycle (refer to lecture 4) a. Era of ferment b. Era of incremental change

7. The Utterback and Abernathy Model or 3 Phases of innovation model (refer to lecture 4) a. Fluid Phase b. Transitional Phase c. Specific Phase

8. The McKinsey 7-S Model a. Hard elements (Strategy, Structure, System) b. Soft element (Shared Values, Skills, Style and Staff) .

Use at least 4 strategic analysis frameworks, identify and evaluate the current position of the incumbent and synthesize the findings. The first one (Porter’s Five Forces Model) is compulsory. In technology cycle and 3 phases of Innovation model, explain at which phase does the current position of the incumbent of our choice fall on. After assessing the incumbent’s current position, provide a detailed solution for this incumbent to re-emerge in the market. The solution has to be linked to innovation and new disruptive technologies. This will help to explain about the firm’s strategic intent. This solution should help to identify and explain the resources and capabilities required by the incumbent that helps to close the gap between its current position and its strategic intent. As part of the assessment, create a mind map to show the possible solutions.

hey there. can you write around 2000 words ( if possible plag free). that would be much appreciated.

Answer 1

Thanks for your question.....

Answer 1)

1* Threat of recent entrants

Profitable industries that yield high returns can attract new entities. New entrants eventually can decrease gain for different corporations within the business. Unless the entry of recent corporations may be created harder by incumbents, abnormal gain can fall towards zero (perfect competition), that is that the minimum level of gain needed to stay AN business in business. The following factors will have a control on what proportion of a threat new entrants might pose:[citation needed] The existence of barriers to entry (patents, rights, etc.). the foremost engaging phase is one within which entry barriers ar high and exit barriers ar low. It's value noting, however, that top barriers to entry nearly always build exit harder. Government policy like sanctioned monopolies, legal franchise necessities, or restrictive necessities. Capital necessities - clearly the web has influenced this issue dramatically. websites and apps may be launched cheaply and simply as against the brick and mortar industries of the past. Absolute price Cost advantage freelance of size Economies of scale Product differentiation Brand equity Switching prices ar well illustrated by structural market characteristics like offer chain integration however can also be created by corporations. Airline frequent flyer programs ar AN example. Expected revenge - for instance, a selected characteristics of marketplace markets is that costs usually settle at AN equilibrium as a result of any value rises or cuts ar simply matched by the competition. Access to distribution channels Customer loyalty to established brands. this could be in the course of giant complete advertising expenditures or similar mechanisms of maintained complete equity. Industry gain (the a lot of profitable the business, the a lot of engaging it'll be to new competitors)

2* Threat of substitutes

A substitute product uses a distinct technology to do to resolve an equivalent economic want. samples of substitutes ar meat, poultry, and fish; landlines and cellular telephones; airlines, cars, trains, and ships; brew and wine; and then on. for instance, H2O may be a substitute for Coke, however dope may be a product that uses an equivalent technology (albeit totally different ingredients) to contend head-to-head with Coke, therefore it's not a substitute. inflated promoting for drinking H2O may "shrink the pie" for each Coke and dope, whereas inflated dope advertising would doubtless "grow the pie" (increase consumption of all soft drinks), whereas giving dope a bigger market share at Coke's expense. Potential factors: Buyer propensity to substitute. This side incorporated each tangible and intangible factors. complete loyalty may be vital as within the Coke and dope example above; but written agreement and legal barriers also are effective. Relative value performance of substitute Buyer's switch prices. This issue is well illustrated by the quality business. Uber and its several competitors took advantage of the incumbent taxi industry's dependence on legal barriers to entry and once those fell away, it had been trivial for patrons to change. there have been no prices as each dealing was atomic, with no incentive for patrons to not strive another product. Perceived level of product differentiation that is classic archangel Porter within the sense that there ar solely 2 basic mechanisms for competition - lowest value or differentiation. Developing multiple merchandise for niche markets is a way to mitigate this issue. Number of substitute merchandise obtainable within the market Ease of substitution Availability of shut substitute

3* Bargaining power of shoppers

The dialogue power of shoppers is additionally represented because the market of outputs: the flexibility of shoppers to place the firm besieged, that additionally affects the customer's sensitivity to cost changes. corporations will take measures to cut back client power, like implementing a loyalty program. Buyers' power is high if patrons have several alternatives. it's low if they need few selections. Potential factors: Buyer concentration to firm concentration magnitude relation Degree of dependency upon existing channels of distribution Bargaining leverage, notably in industries with high fastened prices Buyer switch prices Buyer data accessibility Availability of existing substitute merchandise Buyer value sensitivity Differential advantage (uniqueness) of business merchandise RFM (customer value) Analysis

4* Bargaining power of suppliers

The dialogue power of suppliers is additionally represented because the market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm may be a supply of power over the firm once there ar few substitutes. If you're creating biscuits and there's only 1 one who sells flour, you've got no various however to shop for it from them. Suppliers might refuse to figure with the firm or charge overly high costs for distinctive resources. Potential factors are: Supplier switch prices relative to firm switch prices Degree of differentiation of inputs Impact of inputs on price and differentiation Presence of substitute inputs Strength of marketing Supplier concentration to firm concentration magnitude relation Employee commonness (e.g. labor unions) Supplier competition: the flexibility to forward vertically integrate and cut out the customer.

5* Competitive contention

For most industries the intensity of competitive contention is that the major determinant of the aggressiveness of the business. Having AN understanding of business rivals is significant to with success promoting a product. Positioning pertains to however the general public perceives a product and distinguishes it from competitors‘. a corporation should bear in mind of its competitors' promoting methods and evaluation and even be reactive to any changes created. contention among competitors tends to be cutthroat and business gain low whereas having the potential factors below: Potential factors: Sustainable competitive advantage through innovation Competition between on-line and offline organizations Level of advertising expense Powerful competitive strategy that may doubtless be realised by adhering to Porter‘s work on low price versus differentiation. Firm concentration magnitude relation

Answer 3)

Primary Activities

Primary activities relate directly to the physical creation, sale, maintenance and support of a product or service. They consist of the following:

• Inbound logistics – These are all the processes related to receiving, storing, and distributing inputs internally. Your supplier relationships are a key factor in creating value here.
• Operations – These are the transformation activities that change inputs into outputs that are sold to customers. Here, your operational systems create value.
• Outbound logistics – These activities deliver your product or service to your customer. These are things like collection, storage, and distribution systems, and they may be internal or external to your organization.
• Marketing and sales – These are the processes you use to persuade clients to purchase from you instead of your competitors. The benefits you offer, and how well you communicate them, are sources of value here.
• Service – These are the activities related to maintaining the value of your product or service to your customers, once it's been purchased.

Support Activities

These activities support the primary functions above. In our diagram, the dotted lines show that each support, or secondary, activity can play a role in each primary activity. For example, procurement supports operations with certain activities, but it also supports marketing and sales with other activities.

• Procurement (purchasing) – This is what the organization does to get the resources it needs to operate. This includes finding vendors and negotiating best prices.
• Human resource management – This is how well a company recruits, hires, trains, motivates, rewards, and retains its workers. People are a significant source of value, so businesses can create a clear advantage with good HR practices.
• Technological development – These activities relate to managing and processing information, as well as protecting a company's knowledge base. Minimizing information technology costs, staying current with technological advances, and maintaining technical excellence are sources of value creation.
• Infrastructure – These are a company's support systems, and the functions that allow it to maintain daily operations. Accounting, legal, administrative, and general management are examples of necessary infrastructure that businesses can use to their advantage.

Companies use these primary and support activities as "building blocks" to create a valuable product or service.

Answer 4)

PESTEL ANALYSIS :-

A PESTEL analysis is a word form for a tool wont to establish the macro (external) forces facing an organisation. The letters signify Political, Economic, Social, Technological, Environmental and Legal. looking on the organisation, it are often reduced to tormenter or some areas are often side (e.g. Ethical)

In promoting, before any quite strategy or plan of action arrange are often enforced, it's basic to conduct a situational analysis. and also the PESTEL forms a part of that and will be recurrent at regular stages (6 monthly minimum) to spot changes within the macro-environment. Organisations that with success monitor and reply to changes within the macro-environment ar ready to differentiate from the competition and make a competitive advantage.

Let’s consider every part of a PESTEL analysis.

Political Factors:

These confirm the extent to that government ANd government policy could impact on an organisation or a particular trade. this might embody political policy and stability yet as trade, business and taxation policies too.

Economic Factors:

These factors impact on the economy and its performance, that successively directly impacts on the organisation and its gain. Factors embody interest rates, employment or state rates, staple prices and exchange rates.

Social Factors:

These factors specialize in the social atmosphere and establish rising trends. This helps a seller to any perceive their customers’ desires and needs. Factors embody dynamical family demographics, education levels, cultural trends, perspective changes and changes in lifestyles.

Technological Factors:

These factors think about the speed of technological innovation and development that would have an effect on a market or trade. Factors might embody changes in digital or mobile technology, automation, analysis and development. there's typically an inclination to specialize in developments solely in digital technology, however thought should even be given to new ways of distribution, producing and additionally provision.

Environmental Factors:

These factors relate to the influence of the encompassing atmosphere and also the impact of ecological aspects. With the increase in importance of CSR (Corporate property Responsibility), this part is turning into a lot of vital. Factors embody climate, utilization procedures, carbon footprint, waste disposal and property

Legal Factors:

An organisation should perceive what's legal and allowed inside the territories they operate in. They additionally should remember of any modification in legislation and also the impact this might wear business operations. Factors embody employment legislation, shopper law, healthy and safety, international yet as trade regulation and restrictions.

Political factors do cross over with legal factors; but, the key distinction is that political factors ar light-emitting diode by government policy, whereas legal factors should be complied with

ANSWER 5)

SWOT analysis (or SWOT matrix) is a strategic planning technique wont to facilitate someone or organization determine strengths, weaknesses, opportunities, and threats connected to business competition or project designing. it's designed to be used within the preliminary stages of decision-making processes and might be used as a tool for analysis of the strategic position of a town or organization. it's supposed to specify the objectives of the business venture or project and determine the interior and external factors that ar favorable and unfavorable to achieving those objectives. Users of a SWOT analysis typically raise and answer inquiries to generate important info for every class to create the tool helpful and determine their competitive advantage. SWOT has been delineate because the tried-and-true tool of strategic analysis, however has conjointly been criticized for its limitations. Strengths and weakness ar often internally-related, whereas opportunities and threats normally specialize in the external setting. The name is associate word form for the four parameters the technique examines

• Strengths: characteristics of the business or project that give it an advantage over others.
• Weaknesses: characteristics of the business that place the business or project at a disadvantage relative to others.
• Opportunities: elements in the environment that the business or project could exploit to its advantage.
• Threats: elements in the environment that could cause trouble for the business or project.