Strategy:
- Lose clients
A) Internal - Lose sales
SWOT
S Strength Opportunity O
- Human competencies - Market
- Unique products - Competition
Internal - Performance of the business - Technology External
W Weaknesses Threats T
- Huge debt - Price wars competitors
- Wastage material - Strikes
- Poor/ Complex decision making
- ↑/ ↓ in demand
B) External
1. PORTERS 5 FORCES
1 Competitive rivalry Size & Quantity
2 Barriers to enter Costs
3 Threat substitute Same needs of entities
4 Buyer power
5 Supplier power
2. PESTEL ANALYSIS - negative impact on profitability?
P Political Corruption/ Tax/ Laws/ Government
Interest/ Inflation/ Unemployment rate/
Economical
E Business cycle
Age/ Education/ Health/ Unaffordable/
Social
S Slow population growth
T Technical Changes internet/ IT lifecycle
E Environmental Waste/ Exchange rate/ ↑ infla on
L Legal Tax/ Health & Safety/ New regulations
C) Competitive advantage
STRATEGIC POSITION
Cost leadership Firm = low-cost producer
Protects firm against price wars
Reduces risk if produces at $ lower than other entities
* Economy of scale
* Low research and development
* ↓ Inventory write off
Differentiation Develop unique goods/ services
* Focus on quality
* Timing of delivery
* Warranties
Focus Niche products
- Lose clients
A) Internal - Lose sales
SWOT
S Strength Opportunity O
- Human competencies - Market
- Unique products - Competition
Internal - Performance of the business - Technology External
W Weaknesses Threats T
- Huge debt - Price wars competitors
- Wastage material - Strikes
- Poor/ Complex decision making
- ↑/ ↓ in demand
B) External
1. PORTERS 5 FORCES
1 Competitive rivalry Size & Quantity
2 Barriers to enter Costs
3 Threat substitute Same needs of entities
4 Buyer power
5 Supplier power
2. PESTEL ANALYSIS - negative impact on profitability?
P Political Corruption/ Tax/ Laws/ Government
Interest/ Inflation/ Unemployment rate/
Economical
E Business cycle
Age/ Education/ Health/ Unaffordable/
Social
S Slow population growth
T Technical Changes internet/ IT lifecycle
E Environmental Waste/ Exchange rate/ ↑ infla on
L Legal Tax/ Health & Safety/ New regulations
C) Competitive advantage
STRATEGIC POSITION
Cost leadership Firm = low-cost producer
Protects firm against price wars
Reduces risk if produces at $ lower than other entities
* Economy of scale
* Low research and development
* ↓ Inventory write off
Differentiation Develop unique goods/ services
* Focus on quality
* Timing of delivery
* Warranties
Focus Niche products
