Doom and Gloom engulfs old high street names
After studying the case, the problem is the impact of changes in external business environment but also the organization's’ specific resources and competences, and to analyze this, it is necessary to realize two strategic tools as PESTEL and 5 forces of Michael Porter. I will begin with the 5 forces of Michael Porter:
Rivalry among existing competitors: This market is very competitive; indeed, there are many competitors, that why it’s difficult for a company to stay on top of the market, the reputation is not enough nowadays. Threat of new entrants: In this market there is every years news entrants which are cheaper than competitors already presents in the market, to take market share, that why the company need to adapt its offer to stay competitive. But in addition to that there is competition from foreign companies because of internationalization, thus it’s even more difficult for the company. Threat of substitute products or services: over time has appeared a big problem for these companies, this problem is internet, indeed, with internet it’s possible to place an order of anything at home, without moving, many consumers practice internet today, and the number is constantly increasing, making it a dangerous substitute product for this market. Bargaining power of buyers: the bargaining power of buyers is strong on this market, because there is many competitors, thus the have many choice which gives them power, the company must adapt its strategy to attract them. Bargaining power of suppliers: It’s difficult to speak about the bargaining power of buyers in this case, because of the lack of information about it. After that it’s necessary to do a PESTEL analysis to understand better the problem on this market. Political: At the political level, there is no problem, except the politic of internationalization which causes some problems for companies on this market that must more and more fight...
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