Overall Business Strategy

Porters five forces of competition

Under this model, porter mentioned threats of new entrants who may be interested in the same

business. New entrants affect market share, thus reduce profitability and increase costs of

marketing (Porter, 2008). New entrants also pose a threat since they may introduce a different

entry strategy that is inconsistent with existing firms. New entrants also may redesign, marketing

routs parallel to existing ones, and thus creating market related conflicts. Porters also looked

at the power of suppliers in the model as key drivers of business profitability, because they

influence supplies like raw materials and other services needed by firms, in order to produce.

Pricing of raw materials and other services is vital in determining the price of the finished

product. Suppliers determine the level of input thus affect production related overhead. Another

aspect of competition in the porters framework is the bargaining power of customers. Porter

insists that, customers can mount pressure on the firm to adjust its prices downward, particularly

in a price sensitive environment. This also involves buyers choice and preferences as well as the

purchasing power of such buyers. Threats of substitutes are also another factor that determines

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firms’ competitiveness according to porters theory. Under this, Porter was concerned with

possible product substitutes that can provide alternatives to customers in the event of price

variations. This reduces market attractiveness thus reduces firm’s profitability. At the center of

all these, Porters model also dwelt on competitive rivalry as one of the key aspects of the five

forces of competition. The number and capability of the competitors, determine the level of

market attractiveness that may affect market penetration and profitability of firms (Porter, 2008).

Application of Porter’s five forces of competition

This model applies to our company in many ways. We have to consider that as our company

seeks market expansion, there is likelihood of new entrants in the industry coming on board. In

the event they produce similar products at a lower cost, customers are likely to switch to these

alternatives, which is likely to affect our market share. We have also to consider that using

external website may reduce our direct physical contacts to our renowned customers as much as

it provides an avenue for new customers. On the other hand the bargaining power of these new

buyers may also affect our prices in the new market much as our production costs may reduced

through online marketing. The company also needs to consider the existence of rival firms that

may target our best customers by providing lower prices for similar products. This is because

our rivals will be able to monitor our strategies on our website are likely to employ counter

tactics to our strategies. The power of suppliers should come into the picture when developing

these strategies because expansion of the market may increase demand for raw materials thus

mounting pressure on suppliers to supply more. The power of these suppliers to bargain for

supplies also determines the pricing aspect in the both existing and new markets. Suppliers may

also be forced to seek alternative sources of raw as demand increases. These may come with

extra costs of obtaining these raw materials, which is likely to be passed to our firm. Expansion

may also come with the introduction of new suppliers. These suppliers may have different

strength and bargaining power. Our company will also require some time to build mutual trust

and good working relationships in the event of new suppliers. The cost of switching from one

supplier to another may adversely affect our firms profitability. This should therefore be put into

consideration, thus strategies should

Generic strategies applicable to Adventure Works

As our company embarks on the development of this strategic plan, in relation to its operational

changes, there is a need for new strategies. This can include adopting relevant generic strategies

developed by porter, in our scenario, adopting a focus strategy is key in our new direction. The

company needs to focus on our existing customers and other potential customers in Europe and

develop contacts with them. Focus strategy will enable us to concentrate on a narrow customer

segment with an attempt to achieve cost advantage. However, we need to employ a focus

strategy with an element of cost leadership given that the firm indents to utilize online

marketing; for this reason, there is need to monitor the implication of this online system on our

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distribution costs. Online business provides two important advantages that include reaching a

wide number of potential customers and reduces barriers that affect business (Rainer, Kelly, and

Cegielski. 2012). This strategy best fits our specialized business that revolves around bikes and

metals. This company needs to capitalize on existing customers needs with whom it has already

built good relationship and mutual. There is need to strength our regional sales teams as we

embark on our new plan. This can be done through mapping of customers in every region and

customization our website based on regions to suit the already existing systems. The focus

strategy will enable our company to concentrate on a market niche that we understand most. This

strategy is possible because of already specialized venture in bicycle and metals. Our company

will be able to capitalize on the existing customers based on our brand loyalty. In this case, as we

broaden our market scope, we have to consider our market niche that we are quite familiar with

before penetrating any new market. We also need to bring something new in the mix that will

enhance the attractiveness of our product to customers. When applying the focus strategy, the

aspect of cost leadership will not pose a major challenge because our company will rely on our

website as a key marketing tool when targeting bicycle buyers. Relatively, the company will be

able to reduce cost of distribution through the utilization of online marketing. Cost reduction will

also be realized across the value chain through engagement of specialized suppliers and market

agents across our company. Superfluous Activities in the value chain within the target segment

will also be eliminated through focus strategy. Cost leadership will also be necessary at this

point of time because broadening market entails penetrating other competitive environment,

however, we need to concentrate on existing customers as per contact our list, in this case our

company needs to understand market dynamics including the bargaining power of suppliers and

buyers before the aspect of cost leadership is prioritized. Much as other strategies like

differentiation may create brand loyalty in the market by reducing oversensitivity of customers

on prices, we have to consider that the company already has the best customers that it entails to

concentrate on during its expansion. The newly acquired Importadores Neptuno in Mexico,

provides a framework upon which networking and mapping of potential customers can easily

be achieved through our regional sales team. The focus strategy will be right for our company

to sustain and satisfy already existing customers, we shall also be able to clearly segment our

products in the new geographical regions in relation to renowned customer. Focus strategy is

built on the concept of serving a defined group of customer nitch exactly what our company

should look forward to achieve. Also to note is that focus strategy can help achieve

differentiation as well as the low cost advantage within a narrow market. The focus strategy will

also echo well with this company because of the understanding of customers unique needs and

market dynamics. This is because we have all along served our customers uniquely well,

according to the feedback we get from the hem.

Implementation Tactics

One of the most effective tactic we can use to achieve this is timing tactics. Douglas, John and

Essam (2012), p. 130 noted that moving earlier than competitors to introduce and sell new

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product or model makes an organization first mover while others will be early followers. While

we employ time tactics we must consider our resources, capabilities and competences. The

driving force in timing tactic is considering a market share as organization goal. OShaughnessy,

(1995), established that by using market share as a goal, a company either intends to protect its

market share or advance its market share. By use of a timing tactic, our firm will be able move

before competition, move with competition and move away from competition as provided by

OShaughnessy (1995) in his competitive timing direct matrix. Effectiveness of time strategy

will be determined by how we choose and prioritize our goals. Setting implementation goals

in terms of long term and short term will enable us to evaluate the progress and development

intervention approaches where necessary. This involves setting targets in relation to our current

position in the market and time of achieving these goals for evaluation purposes.

The competitive position tactic will also be key in the implementation of this strategic plan. We

need to position our initiative as market leader who will be followed by other competitors by

virtue of our customer base and their loyalty across our regional markets. More significant is

our level of technology that includes reaching our extensive markets through our website. The

competitive position tactic will make our competitors more of followers. Taking up competitive

approach will mean that, our company defends its position as market leaders within our

market scope through customer defensive tactics. It is good to understand that our expansion

majorly focuses on existing customers, thus losing even one of them will be detrimental to our

strategy. Douglas, et al.p. 134 noted that leaders are always vulnerable to attackers. In this

case, positioning ourselves as market leaders need the adoption of defensive tactics. Defensive

tactics entail to reduce the possibility of attack and reduce threat attacks to an acceptable

standard (Porter 1985b). One of the ways is protecting current market share through position

defense tactic by building fortification around our current position. By focusing our attention

on this strategic plan, our company will be able to position and maintain itself as leading firm in

manufacture and sole distributor of bicycles.

I will be glad to be part of the team that will oversee the smooth implementation of this strategic

plan when in place, and will always be available in case you need any of my input.

Different Strategic Levels In A Business Organization

A business strategy defines the direction in which a business will take in the future. The business organization tries to achieve an advantage over the competition by the configuration of its resources within a confronting setting so that the needs of the market are met and the expectations of its stockholders are fulfilled. This is the overall definition of a business strategy. This focuses a business organization on which market it should engage in and the activities that are needed to compete in that particular market for the business to grow.

In making a business strategy, the planners need to determine how the organization can outperform its competition in a particular market niche. These are the advantages of the company which it needs to utilize, in order to gain the upper hand. In this connection, the right resources that the company can utilize should be gained, in order to maintain its competitive advantage. These resources will include the skills, various company assets, relationships, facilities and technical competence. As an organization plan how to manage its resources, it should also take into consideration the environment in which it is to operate. These are the external factors which can have an effect on the ability of a business organization to compete. Furthermore, the hope and values of its stakeholders should also be taken into account on the overall business strategy.

Though there is an overall strategy which a business organization enforces, there are different levels in a business setting where particular strategies are implemented. First there is the so called corporate strategy. In this particular strategy level, the focus is on the overall purpose and coverage of the organization to meet the expectations of its stockholders. This is crucial to the company since it has a great influence on its investors and guides the strategic decision making all through the company. A corporate business strategy is posted for all to see in the mission statement of a company.

Next in importance to the corporate strategy would be the business unit strategy of a particular business organization. A business unit strategy is mainly concerned with how a business can compete in its chosen market niche. The decisions which are the focus of attention in a business unit level are about meeting the needs of its costumers, choice of products, gaining advantage on the competition and the creation and exploitation of new opportunities.

The next level of business strategy which a business organization focuses on is the operational strategy of the company. At this level, the focus is on how each segment of the business can be systematized so as to give the direction to the business unit strategy. The consideration is on processes, people, resources and other such concerns. Various business organizations have their own strategies which they see are most advantageous to the company. They each implement safeguards to guarantee that strategic goals and objectives are met and vigorously implemented and followed by each member of the team.

Aarkstore Enterprise Thermax Ltd Financial and Strategic SWOT Analysis Review

Thermax Ltd. is engaged in providing a range of engineering solutions to the energy and environment sectors. It offers products and services in heating, cooling, waste heat recovery, captive power, water treatment and recycling, waste management, and performance chemicals. The company is headquartered in Maharashtra, India.

Thermax Ltd. Key Recent Developments. . .

Jan 23, 2011: Thermax Wins Contract To Build Geothermal Power Plant In Konkan Region Of Maharashtra, India Nov 11, 2010: Thermax To Collaborate With Reykjavk Geothermal For 3MW Geothermal Project In India Apr 16, 2010: Thermax Wins INR5.8 Billion Order To Set Up Gas Based Power Plant Mar 12, 2010: Thermax And NPCIL Working On New Packages For Secondary Portion Of Nuclear Power Projects Mar 10, 2010: B&W, Thermax To Build Boilers, Pulverizers For Indian Market

This comprehensive SWOT profile of Thermax Ltd. provides you an in-depth strategic analysis of the company’s businesses and operations. The profile has been compiled by to bring to you a clear and an unbiased view of the company’s key strengths and weaknesses and the potential opportunities and threats. The profile helps you formulate strategies that augment your business by enabling you to understand your partners, customers and competitors better.

This company report forms part of -Profile on Demand’ service, covering over 50,000 of the world’s leading companies. Once purchased, highly qualified team of company analysts will comprehensively research and author a full financial and strategic analysis of Thermax Ltd. including a detailed SWOT analysis, and deliver this direct to you in pdf format within two business days. (excluding weekends).

The profile contains critical company information including*,

– Business description – A detailed description of the company’s operations and business divisions. – Corporate strategy – Analyst’s summarization of the company’s business strategy. – SWOT Analysis – A detailed analysis of the company’s strengths, weakness, opportunities and threats. – Company history – Progression of key events associated with the company. – Major products and services – A list of major products, services and brands of the company. – Key competitors – A list of key competitors to the company. – Key employees – A list of the key executives of the company. – Executive biographies – A brief summary of the executives’ employment history. – Key operational heads – A list of personnel heading key departments/functions. – Important locations and subsidiaries – A list and contact details of key locations and subsidiaries of the company. – Detailed financial ratios for the past five years – The latest financial ratios derived from the annual financial statements published by the company with 5 years history. – Interim ratios for the last five interim periods – The latest financial ratios derived from the quarterly/semi-annual financial statements published by the company for 5 interims history.

Note*: Some sections may be missing if data is unavailable for the company.

Key benefits of buying this profile include,

You get detailed information about the company and its operations to identify potential customers and suppliers. – The profile analyzes the company’s business structure, operations, major products and services, prospects, locations and subsidiaries, key executives and their biographies and key competitors.

Understand and respond to your competitors’ business structure and strategies, and capitalize on their weaknesses. Stay up to date on the major developments affecting the company. – The company’s core strengths and weaknesses and areas of development or decline are analyzed and presented in the profile objectively. Recent developments in the company covered in the profile help you track important events.

For more information, please visit:

http://www.aarkstore.com/reports/Thermax-Ltd-500411-Financial-and-Strategic-SWOT-Analysis-Review-99534.html

Or email us at or call +919272852585

Distribute Business Cards At The Right Opportune Moments

If you are starting up a new business, you will need to print business cards and other stationary items such as letterheads, envelopes and flyers. Take advantage of the huge industry that is now available online though you should take time to select a reliable and reputed online printing firm. It is important to read the reviews and be assured of the online printing firm before placing your valued order. Many printing firms may offer low prices but may not deliver the amount of cards that you order or the quality that you expect.

Since the first impression is generally the best, it is important to ensure that you project the right image when you hand over cards to prospective clients. Decide on whether you prefer the matte or glossy look as these cards look impressive as against the standard business cards. Look at the various types of special inks and finishes available and introduce a photographic image as a logo to depict the product or service. If you use metallic ink it will stand out impressively to highlight the logo or design. It is possible to coat an area of the card with spot UV coating as this will make a striking contrast when you use a matte finish for the rest of the area. Check the weight of the cards that you wish to order and remember that 14 and 16 point stock are definitely not as flimsy as 10 and 12 point stocks. The next criterion is to concentrate on the layout of the card. Give relevant details and try not to clutter the card with unnecessary information.

In an endeavor to save money, many people try to print their own cards. Some people may also resort to spreading the word when they start up a business. However these are not good marketing strategies to follow especially as they are many opportunities available online to print cheap business cards at very low prices. An important feature of marketing campaigns starts with printing of advertising materials. A business man will soon realize the value of using these insignificant cards when they see the results.

Before any major event or meeting, spend some time to decide whether your product or service will make an impact on the customers who will be attending the event. Spend some valuable time online to plan your marketing strategy. Use the free designer templates and tools available with most of the reputed online printing firms and plan the finish and style of your card. Provide the pertinent details and most importantly, your contact details. Talk to the people that attend the event and if you find that they show even the slightest interest in your product, hand them a card as this will make a good impression. You will not project your business in a good light if you scribble details on a piece of paper or write the contact details on one of the flyers. You will not feel the pinch when you distribute these cheap business cards that you have ordered from a reliable printing firm at a throw away price.

Culture Eats Strategy For Breakfast

Management guru Peter Drucker clearly understood that corporate culture is an incredibly powerful factor in a company’s long-term success. He is right! No matter how good your strategy is, when it comes down to it, people always make the difference.

So how do you create a great culture? Does it just happen or can you shape it?

First, you have to define what your culture is and more importantly you must live it and protect it. Living it begins at the top. If people don’t see the executives living and displaying the corporate values that they expect others to live by, the end is near. However, the problem is that most companies don’t seriously take the concept of defining their values. Often they go through the process of identifying values they feel are necessary, but really these are just empty words that don’t mean anything. They check the box and move on. What a waste of time. Or worse, sometimes corporate values are selected as a strategy to “rally the troops” and are really manipulative in nature. This concept can cause resentment and backfire completely.

We find that the best corporate values are those that are personalized and reflect the true beliefs of the company. Above all, avoid standard one word solutions like: integrity, honesty, ethical, teamwork, etc. The best solution is when the values are clearly understood so they truly influence how people make decisions and behave on a daily basis. It is important to remember that values do not drive the business; they drive the people within the business. Values must be internalized by the people in the organization to have meaning.

As part of our process in helping companies develop their core guiding statements of Purpose, Vision and Mission we often evolve and clarify an organization’s values to reflect their culture. Many clients prefer to keep their values internal and not publish them externally. To illustrate our beliefs, I’ll use an example that many people are familiar with. Zappos CEO, Tony Hsieh, and his team represent a great example of how corporate values can drive business success. Take a look at their viewpoint in words, photos and video.

Zappos Family Core Values What puts the Zap in Zappos

“As we grow as a company, it has become more and more important to explicitly define the core values from which we develop our culture, our brand, and our business strategies. These are the ten core values that we live by:”

* Deliver WOW Through Service
* Create Fun and A Little Weirdness
* Embrace and Drive Change
* Be Adventurous, Creative, and Open-Minded
* Pursue Growth and Learning
* Build Open and Honest Relationships With Communication
* Build a Positive Team and Family Spirit
* Do More With Less
* Be Passionate and Determined
* Be Humble

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