Question
ApplicationofStrategicAnalysisToolonBigW Competitionisattheheartofstrategyformulation.Whilethismaybethecase,itispossibletoperceivecompetitioninatoorestrictedandnegativeway.Thefactthatasectorishighlycompetitiveisnotaflukeorasignofbadluck,assomeexecutivesclaim.Therivalryformarketshareisn'tjustlimitedtotheothercompetitors.It'snotjustestablishedcompetitorswhofaceoffagainstoneotherinabusiness;therearecompetingforcesatworkinindustriesthatgowellbeyondtheestablishedplayers.Acompany'scustomers,suppliers,potentialnewcomers,andsubstituteitemsareallrivals.Competitionisinfluencedbyanumberoffactorsandthecombinedpoweroftheseinfluencesdeterminesanindustry'sprofitability. Itisuptothecompany'scorporatestrategisttoestablishapositionintheindustrywherehisorhercompanycanbestprotectitselffromPorter'sfiveforces,orinfluencetheminitsfavor.Regardlessoftheircumulativestrength.Inordertodealwiththecombinedpoweroftheadversaries,astrategistmustlookunderthesurfaceandstudyeachsourceofstrength.Howvulnerableistheindustrytocompetition?Whatfactorsaffectsuppliers'abilitytonegotiatebetterprices? Moreover,thefoundationforastrategicplanrestontheunderstandingoftheseunderlyingsourcesofcompetition.Acompany'simportantstrengthsandweaknessesarehighlighted,alongwiththecompany'sindustrypositioning,theareasmostinneedofstrategictransformation,and industrytrendsthatpromisetobeeitheropportunitiesordangerstothatcompany'sfuture.Asaresultofthisknowledge,itbecomeseasiertothinkofwaystodiversifythebusiness. Required: andaddressthefollowingareas: (10marks) WhatisBigW'scompetitivestrategy? b)WhoareBigW'smajorcompetitors? c)DescribeBigW'sbusinessmodel. d)DescribethetasksthatBigWmustaccomplishforeachprimaryvaluechainactivity. Marking Criteria Toaddresstherequirementofquestion,pleaseperformSWOTanalysis,Porter'sFiveForcesanalysisandthencomeupwithaconclusiveargumentofwhichstrategy(ies)bestsuitthebusinesstoconsideringcompetitorsandbusinessmodel.Markswouldbeawardedbasedontheresearchanalysisandapplicationofknowledge/conceptonthecaseunderdiscussionandnotongeneraldiscussion.BespecificinyourresponsesandsupportyouranswerfromthefactsfromyourresearchonBigW.
ApplicationofStrategicAnalysisToolonBigW
Competitionisattheheartofstrategyformulation.Whilethismaybethecase,itispossibletoperceivecompetitioninatoorestrictedandnegativeway.Thefactthatasectorishighlycompetitiveisnotaflukeorasignofbadluck,assomeexecutivesclaim.Therivalryformarketshareisn'tjustlimitedtotheothercompetitors.It'snotjustestablishedcompetitorswhofaceoffagainstoneotherinabusiness;therearecompetingforcesatworkinindustriesthatgowellbeyondtheestablishedplayers.Acompany'scustomers,suppliers,potentialnewcomers,andsubstituteitemsareallrivals.Competitionisinfluencedbyanumberoffactorsandthecombinedpoweroftheseinfluencesdeterminesanindustry'sprofitability.
Itisuptothecompany'scorporatestrategisttoestablishapositionintheindustrywherehisorhercompanycanbestprotectitselffromPorter'sfiveforces,orinfluencetheminitsfavor.Regardlessoftheircumulativestrength.Inordertodealwiththecombinedpoweroftheadversaries,astrategistmustlookunderthesurfaceandstudyeachsourceofstrength.Howvulnerableistheindustrytocompetition?Whatfactorsaffectsuppliers'abilitytonegotiatebetterprices?
Moreover,thefoundationforastrategicplanrestontheunderstandingoftheseunderlyingsourcesofcompetition.Acompany'simportantstrengthsandweaknessesarehighlighted,alongwiththecompany'sindustrypositioning,theareasmostinneedofstrategictransformation,and industrytrendsthatpromisetobeeitheropportunitiesordangerstothatcompany'sfuture.Asaresultofthisknowledge,itbecomeseasiertothinkofwaystodiversifythebusiness.
Required:
andaddressthefollowingareas:(10marks)
- WhatisBigW'scompetitivestrategy?
b)WhoareBigW'smajorcompetitors?
c)DescribeBigW'sbusinessmodel.
d)DescribethetasksthatBigWmustaccomplishforeachprimaryvaluechainactivity.
MarkingCriteria
Toaddresstherequirementofquestion,pleaseperformSWOTanalysis,Porter'sFiveForcesanalysisandthencomeupwithaconclusiveargumentofwhichstrategy(ies)bestsuitthebusinesstoconsideringcompetitorsandbusinessmodel.Markswouldbeawardedbasedontheresearchanalysisandapplicationofknowledge/conceptonthecaseunderdiscussionandnotongeneraldiscussion.BespecificinyourresponsesandsupportyouranswerfromthefactsfromyourresearchonBigW.
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