Has Dick Smith Foods Achieved Strategic Competitiveness?

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Has Dick Smith Foods achieved strategic competitiveness? La Trobe University MGT3SMG Lana Neuwirt 17035913 Words 1200 09/09/2011 Has Dick Smith Foods achieved strategic competitiveness? Lana Neuwirt 17035913 Introduction Dick Smith Foods (DSF) was founded in 1999 and is supporting Australian businesses and economy by distributing and selling products made by Australian-owned companies. For the firm’s competitiveness analysis a broader view on strategic management and its elements is presented in this paper. Strategic management Strategic management process is the action plan of a firm’s formulated strategy and its implementation, whereas strategy is firm’s long term conception of means for attaining objectives,…show more content…
With this in mind, buyers, e.g. supermarket chains, having strong bargaining power are switching between substitute products with only low switching costs and tend to buy their products from suppliers offering lower rates. As demonstrated by Barney (1991; 1995) the final step in the external environment analysis is the competitor environment which casts light on competitor’s objectives, assumptions, capabilities and strategy. Only with thorough understanding and interpreting of competitors’ actions, a firm can successfully compete against its rivals and create higher value for customers. When analysing its competitors and their trends, DSF should have seen that most of its competitors are multinational companies which control a great share of the foods industry and seek above average returns from imported and lower priced goods. 3 Has Dick Smith Foods achieved strategic competitiveness? Lana Neuwirt 17035913 Internal environment Combined with the knowledge of its external environment, a firm analysing its internal environment, in particular its resources, capabilities and core competencies, is able to create its vision, mission and implement its strategies for obtaining a sustainable competitive advantage (Hanson et al., 2008). It is argued by Berman, Down & Hill (2002) that only the sound combination of firm’s unique tangible and intangible resources provides a basis for competitive

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