| Business Strategy | Individual Assignment |
Ashutosh Amol Doijode |
Contents Introduction 3 1. Industry Analysis – Market Based View: 3 a. Porter’s Five Forces Framework 3 2. Resource Based View 5 3. Demonstration of the tools: IKEA 6 a. Analysis using Porter’s Five Forces Framework 7 b. Resource and Capabilities Analysis 7 4. Reflection 8 References 9
The 1980’s brought about the process of strategic planning and strategy became a core subject of the business management discipline. More advanced and sophisticated techniques evolved from early methods of strategic planning and this became an integral part of the job of managers. Downsizing of staffs and upsizing of the importance…show more content… It also considers the scale and the volume of the product or service involved in the transaction and to what extent the buyer would bargain or negotiate on the price.
The power of suppliers is also analyzed and the relationship between the buyers and suppliers is determined. Managers can create strategies to reduce the cost of suppliers and create an efficient supply chain by this analysis.
Threats of substitutes are also studied and managers can understand how readily available and cost comparable are substitutes and capitalize on their strengths to improve their customer base.
Managers can also determine if there is any significant rivalry among the current players in the industry with regards to the number of competitors, the growth of the market and how to improve the cost efficiency to get an advantage over these competitors. Managers can also determine the exit barriers and reduce redundant costs.
With the aid of the Five Forces Framework, we understand how the structure of the industry drives the competition and determines the profitability, the position of the firm in relation to its rivals and how to restructure the industry for the better. However it has its disadvantage as the study of this wide range of external factors may not be cost effective and may create information overload. 2. Resource Based View
The resource based view of a firm focuses on the features of the organization which are its competitive strengths, if it is used