The focal firm performance is affected by external environment (industry environment and general external environment) in the competitive advantages. The industry environment has the direct effect on the focal firm in the five competitive forces to assess industry attractiveness and to earn above-average profits. The Porter’s Five Forces model focus on the screening and interpreting of threats in the industry environment for corporate level strategic choice, they have direct affect to the average profitability of firms because of the products price, the costs of production and the costs of entry in the industry. If there are high barriers of all threats in the industry, the focal firm will earn expect normal profits that earn its cost of capital.
Corporate Social Responsibility is a concept in which companies integrate social and environmental concerns in their business procedures. The way through which a company achieves a balance of economic, environmental and social imperatives (“Triple-Bottom-Line- Approach) Branding The process involved in creating a unique name, symbol, design and/or image that identifies and differentiate a product from other products. Branding aims to attract and retain customers.
The PESTEL analysis is a concept that helps understanding the market developments and positioning of the company. This way, it is a perfect tool for enterprises to analyze the total impact of the macroeconomic environment on them. The analysis is used in particular to step back from the environment in which the company operates and identify potential opportunities and threats in the context of a SWOT analysis. This method categorizes environmental factors into keys types. Originally, the analysis was limited to the factors PEST (Political, Economic, Socio-cultural and Technological), but some analysts have then added the factor Eco and Legislative which may also influence the company.
Porter’s Five Forces Analysis Porter’s Five Forces model entails the analysis of the five forces and the way each force affects the company’s financial performance. The five forces model is simple and powerful for Gap Inc. to understand where power lies. It assists in ensuring the company understands its current competitive position strength and the strength and weaknesses of new positions. Knowledge of where power is ensures the company can take advantage of their position, avoid making wrong decisions or moves, and enhance their weak positions. The tool assists in identifying the profitability potential of new or current products in specific situations.
However, due to a strong competition and substitution in the industry, the power is with the buyers. Another factor that increases the power of the buyers is the limited switching costs. To switch from one model to another has little to no costs for the customer. Therefore, buyers tend to choose their model based on quality, price and service. An answer to mitigate the power of buyers is a better customer service and a stronger focus on brand loyalty.
Both these employees have shown their innovative approach at work and more than efficient attitude. As for Humbolt, he suggested the best project for the company by acquisition of Schnapps Brand. While the project investment is under the limits of capital budgeting, it is also enticing in terms of profitability and diversity to approach the varied class of customers. On the other hand, it was Morin who designed the price war and was the lead advocate, is yet another deserving candidate to lead the
It applies to companies with all niches. The reason is obvious, in which the competition is getting higher. A flexibility is the key for any companies to adjust with the marketplace needs. It is time to say goodbye to the conventional marketing method, when a company only counts on offline promotional media, which wasn 't effective in reaching the potential markets. The main advantage of business analysis is the ability of the company to reach its goal by understanding the potential market demands of innovative products or services.
▪ How could the environmental factors you have identified impact on the marketing mix? Environmental factors Impacts on the marketing mix Selected environmental factor 1: Internal factors It s help to identify the mission and objectives in the business how much will be cost that need to be spend to manufacture, how this product can go into customers. Selected environmental factor 2: External factor What are the impacts on products/pr External factors important to increase the product because of competition; social factors and Nikee technology changes. ▪ Describe consumer priorities, needs and preferences in relation to the identified marketing opportunity or opportunities. Use the research that you completed in BSBMKG501B to complete this question.
The technology which is used in the business operations impacts the environment, economy and society. The business enterprises are executants of potential damage and may cause redundant effects on the three main pillars. On the other side, companies along with technology and R&D sector have major role in solving existing or possible problems where they develop sustainable technology for the sustainable businesses. According to (Sempels & Hoffman, 2013, p.20), “the business model should be innovated by integrating sustainability in order to build or keep a competitive advantage in an ever changing economy”. The competitive advantage is assigned to a variety of factors, including cost structure, quality of product, distribution network, intellectual property, brand and customer support.
Product Innovation It is a process which brings new products and services to the market. It has the potential to create new markets and can transform the industries or completely destroy them. It stresses on the importance of a company to watch its competitors closely so that company can position the strategies most effectively against its competitors. Although the number of new product introductions continues but only a fraction are considered to be highly innovative. Basically product innovation is the key to the economic development of any organization as the technology changes old products decrease in sales but success in innovation is achieved by understanding the process and its payoffs so that little gets left to chance.