strategy
...an identify strengths and weaknesses of an organisation and the external analysis reveals opportunities and threats. A profile of strengths, weaknesses, opportunities and threats can be carried out with the help of swot analysis. Swot Analysis is cast as a simple, easy to use way to assess a company’s resources and overall situation. Strategic analysis involves tools, which provide insight into a company’s relative cost position and market standing vis-à-vis rivals. A framework developed by Michael Porter known as Porter’s five forces evaluates entry barriers, suppliers, customers, substitute products and industry rivalry. Globalisation and Internet technology are treated as potent driving forces capable of reshaping industry competition. Strategic choice: To attain high profitability and greater market share, and to have a high sustainable competitive advantage organisation can choose any of the three generic strategies identified by Michael Porter, which are cost leadership, differentiation and focus or niche strategies. Low cost strategies works best when product is standardized or readily available from many suppliers. Differentiation strategy works best when organisation creates value for buyers and are not easily matched or cheaply copied by rivals. Focus strategies involve concentrated attention on a narrow piece of the total market where competitors are unable to focus and make profits. Strategic options could be chosen on the basis of ans-off’s matrix. Organisations could make us...