Analyzing the industry and competitive environment is imperative to set the foundation for better decisions. The management can use several strategic management tools to assess both internal and external business climate. For instance, Swot analysis is one of the practical tools that can facilitate better assessment. It contains components such as strengths, weaknesses, opportunities, and threats. Internally, the corporation can evaluate its strengths and weaknesses (McPhail & McPhail, 2020). Externally, the firm can assess opportunities and threats. It is all about getting a holistic view of internal and external aspects and setting the foundation for a suitable strategy formulation. Porter’s five forces analysis is an appropriate competitive assessment tool. The management can apply this tool by navigating the power of buyers, the power of suppliers, the threat of substitutes, the threat of new entrants, and competitive rivalry. Of course, it can offer valuable insights related to these competitive forces, and it can further help in shaping effective competitive strategies (Kunc, 2018).
Why do you think these are the best ways to analyze the market?
These strategic assessment tools are the best ways to analyze the market. These are systematic and comprehensive approaches to have a detailed picture of the market. For instance, regarding swot analysis, the firm can navigate its internal strengths. It is all about knowing or understanding what the organization does well compared to its rivals. Also, the analysis highlights some critical areas for improvement. Opportunities can also be evaluated in the context of the external business climate. It can streamline what the firm can do to be more competitive and lucrative in the business landscape. Potential threats, such as economic downturns, pandemics, regulation, and high competition, can also be assessed for better mitigation. The organization will use this tool for effective strategic planning. Five forces analysis can streamline the competitive picture. For instance, if the bargaining power of customers and suppliers is high, the firm can use customer and supplier-focus strategies. It is the best tool because it can lead to better risk assessment and contingency planning. The most important thing is to maintain a competitive positioning in the competitive market, and analyzing the market through this model is the right approach as far as the probability of effective competitive strategies is concerned (Pušnik, Šumak, & Štumpfl, 2020).
How will you use these tools in your plan?
There is a need to incorporate multiple steps to use these tools in the strategic plan, especially in the furniture industry. Regarding Swot analysis, the firm will evaluate its strengths, such as image, financial condition, vertical integration, and customer service quality. Assessing weaknesses such as relying on the narrowed market and limited product portfolio will also be the right approach. The combination of this assessment will highlight the holistic picture of the internal setting when operating in China (Kunc, 2018). Navigating opportunities, such as business expansion, strategic alliances, advanced technologies, and sustainability measures, will also be the right approach. Optimizing possible economic decline and related threats in China is also essential. Five forces analysis will be used to determine the critical facets of every element. For instance, in the case of the high buying power, probably due to the availability of substitutes, the firm will strive for brand loyalty and satisfaction. High supplier power can lead to the option of diversifying suppliers. Differentiation and cost leadership can emerge as a blend if the threats of substitutes and competition are high (Pušnik, Šumak, & Štumpfl, 2020).
These strategic management tools can provide a base for the organization to reassess its internal and external business climate. The most important thing is making effective and competitive decisions in the business climate to ensure success and competitive advantage.
References
Kunc, M. (2018). Strategic Analytics: Integrating Management Science and Strategy. John Wiley & Sons.
McPhail, I. P., & McPhail, C. J. (2020). Strategic Planning as a Leadership Development Tool for Midlevel Leaders. New Directions for Community Colleges, 191(1), 21-33. doi: https://doi.org/10.1002/cc.2040
Pušnik, M., Šumak, B., & Štumpfl, U. (2020). Analysis Of Strategic Planning Assistance Tools. Central European Conference on Information and Intelligent Systems, 289-294. doi:https://coloradotech.idm.oclc.org/login?url=https://www.proquest.com/conference-papers-proceedings/analysis-strategic-planning-assistance-tools/docview/2531373666/se-2?accountid=144789
Assignment Details
Primary Task Response: Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.
As you close your weekly meeting with Deborah, she says, “There are some very good ideas here. I would like to see you continue with a global marketing plan. We need more concrete analysis and data for the presentation. Get your team to work.”
After your meeting with Deborah, you briefly meet with your team to discuss moving toward a more formal analysis.
“Tiffany and Mike, we need to provide a more detailed analysis,” you explain. “You’ve done a great job so far looking at what resources we need and potential countries, but we need to really dig deeper on this.”
Tiffany nods her head in agreement. “Definitely,” she says. “We need to look at some internal variables as well as political, environmental, sociocultural, and technological environments of the countries that we are considering.”
Mike interjects, “Well, that’s something we should consider, but it’s not the only way to analyze this type of project. This is such a big decision, and we need to give as much information as we can.”
You reply, “Great point, Mike. We should look at this from a couple of different angles.”
The next step in your strategic marketing plan is to determine the tools that are needed to conduct an analysis of the industry and competitors. Complete the following:
What are two analysis tools that could be used in this situation?
Why do you think these are the best ways to analyze the market?
How will you use these tools in your plan?
The materials found in the M.U.S.E. may help you with this assignment, such as the audio file Implementing a Global Strategy. This file provides real-world experience that may help you with this assignment.
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