«Competitive and Strategic Analysis» Essay Sample

Competitive and Strategic Analysis

Answer to Question A

In reality, competition forces society to be better by providing products with superior value. Michael Porter identified five forces that shape competition in a given industry. The forces include threat of entrants, power of buyers, power of suppliers, threats of substitutes and rivalry among competitors. With reference to the five forces above, my team company’s competitive advantage and core competencies include the following. First, the company’s competitive advantage is in its use of appropriate technologies in the market, making its products more superior compared to those offered by the entrants (Porter, 2008). Moreover, the company’s core competency is that it has mastered the market trends and dynamics, making it change its production according to consumers’ demands. The other competency is that company performs beyond the capacity that the new investors bring into the market (Kim & Mauborgne, 2004). It, therefore, has a competitive advantage over the threats that the entrants pose.

Second, the company understands the power of buyers in ensuring that the business remains competitive. In this regard, the core competency of the company is that it maintains high quality of the products, thereby earning the confidence of consumers. Consumer confidence on the company products increases the sales volume, thus guaranteeing continuity. Third, the company understands the power of suppliers in sustaining its operations. Here, the core competency is that the company maintains a cordial relationship with its suppliers, making them feel part of the organization. Moreover, the company ensures that the suppliers deliver quality products that would help maintain the quality standards, thus able to gain competitive advantage.          Fourth, the company acknowledges the threats of substitutes. In this case, the core competency is that it offers affordable products of reasonable quality. This measure ensures that the customers do not look for alternatives to the products that the company offers. Finally, the company understands the impacts of rivalry among competitors. In this regards, the core competency of the company is that it adopts unique strategies that their competitors cannot imitate. It also encounters the strategies that the competitors adopt, meaning that the organization always remains the most preferred (Zenger, 2013).        

Answer to Question B

As mentioned earlier, the forces include threat of entrants, power of buyers, power of suppliers, threats of substitutes and rivalry among competitors. New entrants come into the market with particular force to capture a niche. This destabilizes the company’s operations, interferes with its pricing, investment rate, thus making it less competitive. The buyer play a significant role in the company because they help the organization achieves its goals (Martin, 2014). All policies are geared towards consumer protection because they are the primary stakeholders. The suppliers are equally important for the organization. They have to deliver quality products that would make the company maintain high quality. This is important for organizational success because the quality of the products depend on materials used for production and adherence to ethical standards during the entire process.

The substitutes to the products that the company produces also threaten its business viability because customers might prefer the alternatives due to the cost and quality factors. Competition is almost inevitable in business; hence, the company avoids competition rivalry in the market by making unique products and adopting competitive strategies (Collins & Porras, 1996). The sixth force that Wheelen and Hunger identified is the relative power of other stakeholders. Ideally, these other stakeholders have significant influence in the operations of the company. They include the local communities, the government and the non-governmental organization (Wheelen & Hunger, 2012). The forces from these groups include legislations, policies and interests that do not concur with those of the organization.

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