Mb0052 Strategic Management and Business Policy Assignment Mba Sem 4

| Linked businesses influence the company as more ideas in order to improve the company it creates a competition of pride both wanting to do their best to out weigh the other company.

‘Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through it’

The key stakeholders in a business include customers, suppliers, employees, local and national communities and governments.

Both potential and existing competitors influence average industry profitability. The threat of new entrants is usually based on the market entry barriers. They can take diverse forms and are used to prevent an influx of firms into an industry whenever profits, adjusted for the cost of capital, rise above zero. In contrast, entry barriers exist whenever it is difficult or not economically feasible for an outsider to replicate the incumbents’ position (Porter, 1980b; Sanderson, 1998) The most common forms of entry barriers, except intrinsic physical or legal obstacles, are as follows:

Rivalry among existing competitors describes the intensity of competition between “Broadway’s Café” and existing coffee shops in an industry. A highly competitive industry might result from many players of about the same size, on single dominant competitor, little differentiation between competitors’ products and services

Strategy is plan action designed to achieve long term and overall goals. Strategy may also be defined as method or plan to bring about the desired future or solution to a problem.

Threat to new entrants: There is no barrier to entry in this industry but it might be difficult for newcomers to compete against existing well establishing companies.

Strategy: an organizations long term course of action designed to deliver a unique customer experience while achieving its goals.

Threat of new entrants: New entrants to an industry bring new capacity, the desire to gain market share and often substantial resources-Low

What is a strategy and why is necessary to have one? A strategy can be simply defined as a long term action plan for achieving a goal (InvestorWords.com, n.d., n.p.). Strategies are an integral part in the success of any company and are key in a company 's overall ability to accelerate its sales, gain market leadership, and really power up its revenue growth (Rowe, 2010, n.p.). In other words without a strategically developed strategy a company can not attain its future goals and objectives.

The risk of generic substitution is also increasing with especially China dominating the production market. Customers will substitute for a generic product if the disposable incomes of the customers reduce resulting in customers willing to trade down for a inferior but cheaper product.

Threat of New Entrants – The threat of new competitors entering an industry is high when initial

The bargaining power of suppliers is also described as the market of inputs. Suppliers bargaining power impact the cost of the product.

There is no exact definition for Strategy because it is defined in different ways as some people think that make a plan to get success in future is a strategy while others think that future is hard to predict. Exceptionally, some Japanese companies have no strategies though these companies have a good cost and continuous improvement. The definition for strategy is to explain the direction and scope of any company for the long term to achieve advantage for the company or to fulfill the needs and expectations. Strategy is different from Operational effectiveness and they work in different manner in the companies. Michael Porter, who is a professor at Harvard Business School and a strategy expert, says that it should determine how organizational resources and skills should create advantage. Accordingly, Strategy can also be defined as an organizational change during actions in the organizations for better and advantageous results or to determine how we win and get success in the future period. It is a needful developed plan with respect to market to compete the world. Organizations should be responsible for competitive changes according to the market. It is the main goal for any Organizations. Business/IT strategy is very important to know the success rate of your business. Apart from Business Strategy, the other two main types of strategy are Corporate Strategy and Team Strategy. These strategies give competitive advantage of cost leadership, differentiation and focus. The

If an industry is profitable, it will become a magnet to attract more competitors looking to do same business with us. If it is easy for these new entrants to enter the market, this poses a threat to the firms already competing in that market. Threat of new entrants is one of the forces that shape the competitive structure of an industry (Marc, 2014). A high threat of entry means new competitors are attracted by the profits of the industry and can enter the industry easily. New competitors entering the marketplace can make the market share and profitability of existing competitors more threaten cause the existing competitor to make some changes to existing product quality or price levels. A high threat of new entrance can make an industry more competitive and decrease profit potential for existing competitors whereas a low high threat of new entrance can make an industry less competitive and increases profit potential for the existing