Question

Assume you are strategy expert of a company in your country.

Required: Words: 350-400

a. Discuss how each of the Porter’s forces would affect/influence decision or strategy of your company.

b. Suggest how the company can create and sustain its competitive advantage.

Answer 1

Porters forces influence companies decisions to diversify, harvest, divest or merge or acquirr new firms. It helps them assess competitive rivalry and customer and suppliers bargaining power and threat of new entrants and subsequently devise market strategy to cope up with challenges. Each force leads company to decide the marketing and distribution strategy, vendor relationships and competitive strategy.

Company can creste and sustain competitive advantage through economies of scale, resources allocation, inventory optimisation, capacities utilisation, revenue maximisation, industry penetration and cost synergies.