...RUNNING HEAD: COMPETITIVE FORCES AND SWOT ANALYSIS Competitive Forces and SWOT Analysis Teresa Hamlett BUS 599 Strayer University Dr. Russell Handlon January 22, 2012 Competitive Forces and SWOT Analysis Got organic? Concerns for healthier foods have led to consumers purchasing alternative foods. Consumers have found solace with organic foods. Organic foods are considered to be like natural foods. These foods do not contain any harmful processing agents or ingredients or chemicals and pesticides. Whole Foods Market is a producer and seller of organic foods. The trends associated with retailing of organic foods have impacted those of Whole Foods Market. Other supermarkets who are now selling organic foods have created a competitive environment in which Whole Foods Market must vie with. A SWOT analysis will reveal the key strengths, weaknesses, opportunities, and threats Whole Foods Market must face. A further analysis of these will be useful in Whole Foods Market maintaining a competitive advantage in the marketplace. Organic Food Trends “According to the USDA, 2000 was the first year in which more organic food was sold in conventional U.S. supermarkets than in the nation’s 14,500 natural foods stores (Thompson 2009, Pg. C-4).” Supermarkets have stocked more organic foods over the last decade and have even setup sections that only have organic foods in those sections. As consumers are becoming more health conscious, worried about what is in their foods...
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...strategic planning frameworks such as a SWOT analysis or a five forces analysis in strategic planning initiatives. These frameworks help organizations think about the types of questions they need to ask and the information they need to be thinking about before making any business decisions. SWOT A SWOT analysis is a strategic evaluation framework used to look at a company. SWOT stands for strengths, weaknesses, opportunities and threats. The first step of a SWOT analysis is to evaluate the positive and negative aspects of the company. Once the strengths and weaknesses have been determined, the company can look beyond its own organization to evaluate opportunities and threats from the market or competitors. Competitive forces affect strategy because your competitors react to the strategic actions you take in the marketplace, and your company has to react to their strategic moves. You have to make sure this interplay works to your advantage by using SWOT analysis to identify your company's strengths, weaknesses, opportunities and threats, and by performing the same analysis for your competition. You use this information to take action in areas where you are strong and your competitors are weak, exploiting their threats and capitalizing on your opportunities. Five Forces Porter's Five Forces is a framework used to evaluate an industry as opposed to a company. The "forces" refer to five aspects of an industry that dictate its attractiveness. The forces include power of suppliers, power...
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...long-range perspective.’ Model of Strategic Analysis Tools Typology ‘…the process of conducting research on the business environment within which an organization operates and on the organization itself, in order to formulate strategy.’ BNET Business Dictionary ‘… a theoretical informed understanding of the environment in which an organization is operating, together with an understanding of the organization’s interaction with its environment in order to improve organizational efficiency and effectiveness by increasing the organization’s capacity to deploy and redeploy its resources intelligently.’ Professor Les Worrall, Wolverhampton Business School Definition of strategic analysis often differ, but the following attributes are commonly associated with it: 1. Identification and evaluation of data relevant to strategy formulation. 2. Definition of the external and internal environment to be analyzed. 3. A range of analytical methods (strategic analysis tools) that can be employed in the analysis. Example of analytical methods used in strategic analysis which will be discussed in this paper includes but not limited to the following: 1. SWOT analysis 2. PEST analysis 3. Porter’s five forces analysis 4. Four corner’s analysis 5. Value chain analysis 6. Early warning scans 7. War gaming An overview of these strategic analysis tools will be provided. Strategic Analysis Tools Definition Analytical methods and tools are...
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...overview of the planning literature. There is a lot of material to slog through, but each approach to planning has something to offer. This overview will set the stage for presenting the Ten–Ten planning process in the next chapter. The next chapter will integrate the various planning approaches and present a simplified, yet robust approach to planning called the Ten–Ten planning process. The key benefit of the Ten–Ten planning process is that it can be used for developing business plans in a very short time span. 8.1 Planning Concepts There are two generic planning strategies that a business can pursue.Michael Porter originally identified three generic strategies. He noted that a business can also focus on a market that is not very competitive. Most people consider this to be a special case of the other two strategies. See Porter (1980). It can strive to be efficient, it can differentiate, or both. In other words, a firm can focus on delivering Midas versions of products, Hermes versions of products, or both. A firm that employs a strategy of efficiency strives to be the low-cost producer and compete on the basis of charging less than the other...
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...will cover the following business models: Porters 5 Forces of Competition, Breakeven Analysis, Product Life Cycle and SWOT Analysis. Porter’s 5 Forces of Competition Figure 1: Porter's Five Forces Figure 1: Porter's Five Forces Porter’s model identifies and analyzes five competitive forces that shape every industry. This model also helps determine the weaknesses and strengths present in an industry. This is particularly helpful for a firm because it paints a clear image about where the power lies within the business to take advantage of the strengths and improve the weaknesses. By doing so, the business can compete efficiently and effectively. Additionally, this business strategy tool helps analyze the attractiveness in an industry structure. In other words, the model measures the profitability potential in a business situation. Figure 1 is a graphical representation of Porter’s Five Forces. The five competitive forces identified by Michael porter are: Threat of Substitute Products, Threat of New Entrants, Intense Rivalry Among Existing Players, Bargaining Power of Suppliers and Bargaining Power of Buyers. Threat of Substitute Products means how easily your customer can switch to your competitors product. When there many actual and potential substitute products available in the target market, then the segment is unattractive. On the other hand, the lack of close substitutes products makes an industry less competitive and increases profit potential for the firms in the industry...
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...60 countries and regions; providing employment solutions by staffing individuals in organizations as: temporary or permanent employees (Adecco Group, 2013). The company also helps clients and employees with career changes and talent growth and advancement, as well and outsourcing and consulting services to some of the most well-known large corporations (Adecco, Group, 2013). According to the company’s 2013 financial report, their revenue declined 5% to 19,503 EUR and decreased by 2% in constant currency due to a decline in temporary staffing volume (Adecco, 2014, p. 47). The temporary staffing decline also led to gross profits to decrease by 3% of all 13 segments. Operation strategies are actions that the corporate set to remain competitive in the industry and build brand equity; therefore, Adecco Group’s strategy wants to work alongside associates and clients through every phase of the life cycle. In addition, the Adecco Group conduct audits to make sure each segment are operating efficiently to remain on track through all growth segments and markets while practicing s stringent cost management technique, the Economic Value Added (EVA) concept (Adecco Group, 2014). The overall technique is geared toward improving the company and to ensure profitability on the market. The EVA allows Adecco Group to remain a pillar during business transactions and daily operations; the EVA also helps the company adhere to their corporate responsibility rules, pricing and costs and promote...
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...Strategic Management Analysis Tools BUSI/600 – Business Research Methods October 14th, 2011 Abstract In this paper the author has decided to conduct an in-depth analysis on the strategic management analysis tools. In this paper the author will speak on several types of analysis tools and distinguish how each has a distinguishing role in the organizations planning process. In this literature review, the author will cover the SWOT Analysis, the PEST Analysis, the Value Chain Analysis, Porter’ Five Model, Four Corner’s Analysis, Boston Consulting Group Growth-Share Matrix, General Electric Matrix, and the Strategic Early Warning Systems. Hopefully, after the completion of this review the readers will have a clear understanding of how each of the analysis operate and can be applied to any organization or group. SWOT Analysis The SWOT Analysis is a technique that was developed by Albert Humphrey, who was in charge of a research project in the 1960’s and 1970’s at Stanford University using data from many organizations over the world. The ultimate goal of the study was to reveal why corporate planning was failing. After the results were formulated, Humphrey could identify many areas of concern and the tools Humphrey needed to investigate each of these areas were called a SOFT analysis (Ghazinoory, Zadeh & Memariani, 2007). Humphrey and the team used the categories “What is good in the present is Satisfactory, good in the future is...
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...SWOT ANALYSIS INTRODUCTION. A business must analyze their general environment and their industries competitive environment in order for the business to understand their environment. (Dess, Lumpkin, Eisner, & McNamara 2014.) This comes by doing a SWOT Analysis which is a basic technique. By doing a SWOT Analysis, the company can identify its strengths and weaknesses which are the internal forces. The analysis also identifies the external forces which are the opportunities and threats in the industry. Verizon Communications is the company that will be reviewed. Verizon SWOT Analysis Strengths Opportunities Strong reputation of network coverage Brand recognition and Global Goodwill Largest wireless carrier in the US High customer retention rates when compared to competitors Infrastructure investment Strategic Initiatives International Expansion Cost efficiency of converging telecom services VOIP business and its growth Weaknesses Threats Higher prices when compared to competitors Presence limited to primarily Americas Increasing debt burden FCC regulations Stiff competition Rapid technological changes . Internal Forces The internal forces are those directly related to Verizon communications. These are the company’s strengths and weaknesses that they are able to control internally. When analyzing the internal forces a company can review their strategies and see where the company needs improvement and where the company is performing well. Strengths ...
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...Name : Soo Chia Chuan Title Of Report : Environmental Analysis Date : 14-02-2014 Student ID : CT0210916 Content Page * Introduction * Company Background * Country Background * SWOT Analysis * Three Pointers Of SWOT Analysis * PEST Analysis * Three Pointers Of Pest Analysis * Definition Of Porter’s 5 Forces * Porter’s 5 Forces Model Of Telecommunication In Malaysia – Table 3 * Porter’s 5 Forces Analysis Of Telecommunication In Malaysia – Table 3 * Elaboration Of Industry * Recommendations * Conclusion * Reference List Introduction This is an Environmental Analysis report of a company. This report consists of the Company background, Country background, SWOT Analysis, PEST Analysis, Porter’s 5 Forces, Recommendations, Conclusion and Reference List. Company background is to know how the company runs their business and more in depth of a company. Country background is about why that specific country was chosen for this report. SWOT Analysis consists of Strength, Weaknesses, Opportunity and Threat. PEST Analysis consists of Political, Economic, Social – Culture and Technological. Porter’s 5 Forces consists of Threat of new entrants, Threat of substitutes, Suppliers, Customers and Intensity of rivalry. Company Background Starhub Limited is a telecommunication company which provides a full range of services over mobile, internet, cabletv in Singapore. Starhub has been in telecommunication industry from 7th May 1998...
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...Topic Gateway Series Strategic Analysis Tools Strategic Analysis Tools Topic Gateway Series No. 34 Prepared by Jim Downey and Technical Information Service 1 October 2007 Topic Gateway Series Strategic Analysis Tools About Topic Gateways Topic Gateways are intended as a refresher or introduction to topics of interest to CIMA members. They include a basic definition, a brief overview and a fuller explanation of practical application. Finally they signpost some further resources for detailed understanding and research. Topic Gateways are available electronically to CIMA Members only in the CPD Centre on the CIMA website, along with a number of electronic resources. About the Technical Information Service CIMA supports its members and students with its Technical Information Service (TIS) for their work and CPD needs. Our information specialists and accounting specialists work closely together to identify or create authoritative resources to help members resolve their work related information needs. Additionally, our accounting specialists can help CIMA members and students with the interpretation of guidance on financial reporting, financial management and performance management, as defined in the CIMA Official Terminology 2005 edition. CIMA members and students should sign into My CIMA to access these services and resources. The Chartered Institute of Management Accountants 26 Chapter Street London SW1P 4NP United Kingdom T. +44 (0)20 7663 5441 F. +44...
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...positioning is the foundation that establishes organisations strategic potential, what it can do and strategic ambitions, what it actually seeks to do (Johnson et. al 2011). This requires good understanding of the externalinternal environment, organisational purpose and culture. The tools commonly used to develop understanding and perform a strategic analysis are presented in Appendix 1.0.This essay aims to lay the foundation for a comprehensive analysis of current strategic potential of Singapore Airlines (SIA). Firstly, the focus is on how to identify the sources of information about macro environment, unique features of airlines industry and in depth view of internal dynamics of SIA. Secondly, the focus is on comparison of four core tools in terms of relevance, advantages, disadvantages and creative adaptability for SIA. A preliminary application of these tools is made to illustrate the arguments for or against using a particular tool. The essay briefly touches on another crucial aspect of right expertise and competence for an effective analysis. The essay concludes with key observations and recommendations for a further comprehensive analysis of SIA.A simple structure is adopted in this essay as indicated in Fig 1.0 The airlines industry in general, with no exception of Singapore Airlines, has always been viewed as having certain unique features in terms its external environment. Johnson et al. (2011) describes the external environment in form of layers as shown in Figure 2.0. Environmental...
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...PEST Market Analysis Tool PEST analysis method and examples The PEST analysis is a useful tool for understanding market growth or decline, and as such the position, potential and direction for a business. A PEST analysis is a business measurement tool. PEST is an acronym for Political, Economic, Social and Technological factors, which are used to assess the market for a business or organizational unit. The PEST analysis headings are a framework for reviewing a situation, and can also, like SWOT analysis, and Porter's Five Forces model, be used to review a strategy or position, direction of a company, a marketing proposition, or idea. Completing a PEST analysis is very simple, and is a good subject for workshop sessions. PEST analysis also works well in brainstorming meetings. Use PEST analysis for business and strategic planning, marketing planning, business and product development and research reports. You can also use PEST analysis exercises for team building games. PEST analysis is similar to SWOT analysis - it's simple, quick, and uses four key perspectives. As PEST factors are essentially external, completing a PEST analysis is helpful prior to completing a SWOT analysis (a SWOT analysis - Strengths, Weaknesses, Opportunities, Threats - is based broadly on half internal and half external factors). pest variations The PEST model, like most very good simple concepts, has prompted several variations on the theme. For example, the PEST acronym is sometimes shown as STEP, which...
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...Topic Gateway Series Strategic Analysis Tools Strategic Analysis Tools Topic Gateway Series No. 34 Prepared by Jim Downey and Technical Information Service 1 October 2007 Topic Gateway Series Strategic Analysis Tools About Topic Gateways Topic Gateways are intended as a refresher or introduction to topics of interest to CIMA members. They include a basic definition, a brief overview and a fuller explanation of practical application. Finally they signpost some further resources for detailed understanding and research. Topic Gateways are available electronically to CIMA Members only in the CPD Centre on the CIMA website, along with a number of electronic resources. About the Technical Information Service CIMA supports its members and students with its Technical Information Service (TIS) for their work and CPD needs. Our information specialists and accounting specialists work closely together to identify or create authoritative resources to help members resolve their work related information needs. Additionally, our accounting specialists can help CIMA members and students with the interpretation of guidance on financial reporting, financial management and performance management, as defined in the CIMA Official Terminology 2005 edition. CIMA members and students should sign into My CIMA to access these services and resources. The Chartered Institute of Management Accountants 26 Chapter Street London SW1P 4NP United Kingdom T. +44 (0)20 7663 5441 F. +44...
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...Plan Contents Contents 2 1. Introduction 3 2. Context 3 1.1. Environment 3 1.2. Industry 4 1.3. Stakeholders 5 1.4. SWOT 6 3. References 9 4. Annexures 10 8.1. Annexure A: PESTEL analysis 10 8.2. Annexure B: Porter’s Five Competitive Forces 11 8.3. Annexure C: SWOT analysis 12 1. Introduction The Employee Benefits operational plan sets out the short-term objectives for the business unit (also referred to as company) for the next 12 months. It aims to identify what needs to be accomplished in order for the company to meet its strategic objectives and it does so by identifying and outlining those activities that need to be implemented. 2. Context The following section provides background for the focus, decisions made and activities selected in the operational plan for Employee Benefits. 1.1. Environment An environment analysis focusses on the external and uncontrollable factors that influence an organisation (Peters [sa]). PESTEL is a common macro environment analysis tool which looks at factors from political, economic, sociocultural, technological, environmental and legal aspects and Vitez (2014) explains that such a macro environmental analysis helps create a strategy that leverage as many of these external factors as possible to the company’s advantage. The PESTEL analysis for Employee Benefits has identified the following major external factors which need to be considered by the company: Table 1: Macro factors ...
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...and Service Partner (SSP) such as catering and restaurants. The main aim of this report is to analyze the problems that SAS faced as well as identify the solution approaches that had been used by the company, especially the vertical integration. In order to analyze those problems, the report will apply SWOT analysis, PESTEL analysis and Five Porter Factors analysis. 2.0 Analysis 2.1 Analysis SWOT is stand for Strength, Weakness, Opportunities and Threats. According to Robert (2004), SWOT analysis aims to identify as well as analyze internal strengths and weaknesses of a company. It also analyzes opportunities and threats that the environment has on a corporation. SWOT analysis can help companies to enhance their strengths and opportunities as well as minimize their weaknesses. Due to Nadine and Anne (2007), SWOT is a useful tool for decision making. In addition, by applying SWOT, company is able to avoid the unworkable constellations of threat and weakness. However, as SWOT analysis result is based on analysts, lack of skills and experiences can lead to bad analysis. It can result in wrong decision making or wrong business strategies. Base on the SWOT analysis (Appendix 6.1), the strength of SAS includes its early establishment in 1946. This earlier establishment led to its numerous first in early year of air-travel such as pioneered the...
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