Strategic Analysis: The Porter's Model For Strategic Planning

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Table of Contents Summary 4 Introduction 5 The Seven S Models for Strategic Planning 7 Strategic Analysis 8 Analysis of the Remote Macro Environment 10 Sociological factors 11 Technological factors 11 Economic factors 12 Political factors 12 The Micro Competitive Environment 13 Threat of New Entrants 14 Bargaining Power of Suppliers 14 Bargaining Power of Buyers (Customers) 15 Threat of Substitute Products or Services 15 Industrial Rivalry 15 Strategic Choice 16 Porter’s Generic Strategies 16 Cost Leadership 17 Cost Focus 18 Broad Differentiation 18 Differentiation Focus 19 Vision and Mission Statements 19 Strategic Implementation 21 The Product Life Cycle 21 Introduction Stage 22 Growth Stage 22 Saturation Stage 23 Decline Stage 23 The Boston…show more content…
Internal analysis (identification of strengths and weaknesses) identifies the organisation’s capabilities and core competencies to develop its potential in response to market opportunities. Internal analysis starts with the examination of the present situation. For example, a SWOT analysis team could ask themselves the following questions relating to the business: • What business is the company? • What are the targets? • How well is it achieving these targets? • What are the resources and how well these are being used by management? In doing so, the company can identify its strengths and weaknesses in making good strategic decisions in order to establish a competitive advantage. Strengths will vary depending on the type of company in question but undoubtedly, financial soundness is a vital strength for any company to possess. A skilled and committed workforce is also key to a company’s success. Other examples of company strengths include: • A well known brand name. • A strategic business location. • A strong market share. • A new, innovative product or…show more content…
There is likely strong competition entering the market. Brand extensions and promotion offers are now required by the company to boost sales. Companies must plan their products portfolio very carefully ensuring to have a balanced portfolio of products, planning to have products at complementary stages of their PLC [5]. It is important that mature products provide investment funds for the products in the development stage. Apple also recognises that decline is inevitable – one day they will have to stop selling the iPod. But they are more than prepared for this – the iPhone is almost a direct substitute for the iPod, while the Apple Store is becoming more and more orientated to iPad and iPhone

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