The spreadsheet entitled ‘Industry Performance Period 1’ contains all the essential information about an industry with 5 competing firms. You will need to carefully study the information in this spreadsheet as well as the ‘Market News Period 1’ spreadsheet in order to complete this assignment.
This assignment is in two parts. You must complete both parts and they are equally weighted. You must complete this assignment in NO MORE than 3500 words excluding referencing and appendices. You should refer to evidence provided in the spreadsheet as well as referencing appropriate theories.
Assume you are firm A
Part A) Developing a strategy
Developing a strategy for your firm is a key part of achieving success in the any business environment. Your strategy will serve as your firm’s “roadmap”. For the purpose of this assignment, your plan should consist of 5 elements: Business definition and rationale, source of competitive advantage, performance objectives, key success factors and strategic assumptions.
Please respond to the following questions to create an overall definition of your strategy for your firm.
1. Business Definition: Possible areas to consider include: Who do you want to serve and why? (Include customers/segments to be targeted and customer needs satisfied. Be sure to provide the rationale for these choices – for example: segment attractiveness, market gaps, fit with resources, synergies?
2. Source of Competitive Advantage: Possible areas to consider include: With which competitors will you compete and how do you intend to win against them?
3. Performance Objectives: Possible areas to consider include: What performance goals do you have for your firm? (for example, highest cumulative profit, highest stock price, largest market share in target markets, etc.)
4. Key Success Factors: Possible areas to consider include: What is required of your firm to execute this strategy successfully? (for example, product development, outspend competition, first in market, etc.)
5. Strategic Assumptions: For your strategy to be successful, are there any underlying assumptions that you have made?
Part B) Competitor Analysis
Success in a business environment requires that your firm simultaneously anticipate and respond to changes in both customers and competitors. While many firms do an excellent job of tracking changes in customer preferences as inputs into product decisions, they often fail to anticipate the likely moves and reactions of competitors. Omission of critical competitor intelligence in making business decisions can prove to be disastrous for your profitability. For example, having the “best” product for a particular customer will rarely win against competitors with “acceptable” products that are supported by far superior distribution coverage and massive advertising budgets. Another example is failing to anticipate a competitor entering your space.
Please choose who you believe is your most significant competitor and respond to the following questions.
1. Chosen firm: Which of your competitors have chosen for in-depth analysis and why?
2. Business Definition: Possible areas to consider include: What business does this competitor appear to be in? What markets do they serve, what customer needs are satisfied?
3. Source of Competitive Advantage: Possible areas to consider include: What do you believe this competitor views as their source of competitive advantage?
4. Strengths and Weaknesses: Possible areas to consider include: How would you characterize the primary strengths and weaknesses of this competitor? How can you exploit their weaknesses while defending against their strengths?
5. Self Analysis: Possible areas to consider include: How does this competitor view your firm? Do they consider you a threat? What weaknesses do your firm have that might be viewed as an opportunity for this competitor?
6. Strategic Assumptions: What moves do you anticipate this competitor will make in the next 3 years and how will you respond to them