Strategy Composition

Based on your classmates’ discussion posts for Week 2, do you still believe the tools that you selected will work best for a global strategy? Why or why not?

The tools selected for the analysis of industry and competitors are the PEST and the Poster's 5 Forces Analysis. The tools selected are efficient to do the required analysis this is because the tools used for analysis are inclusive of many factors that have the potential of affecting an industry.

What evidence do you have to support your decision?

The use of the PEST analysis considers several dimensions in the process of analysis. First, it takes into consideration the effect political factors to the market: the role the government plays in the industries. Secondly, the effect of the state of the economy is analyzed. The third consideration is the social factors of the consumers and finally, the effects of the constantly changing technology. The Poster's 5 forces analysis examines the ease of and threat of other business entering the industry, the ability of customers to bargain on the prices provided by competitors, the bargaining power of the suppliers in that if they have the freedom of choice to who they supply or one manipulate them for his or her own benefit. The method also provides room for someone to weigh whether the business being run can survive the competition in the market or will the business lose to the competition (Sivitanides, 2017).

How would you refute the people who chose an additional tool rather than one of the tools that you selected?

There are other tools that can be used for analysis which include the SWOT analysis and the Generic Competitive Strategy. The SWOT analysis focuses on strength of the business, opportunities available for the business, its weakness and threats most of which can also be done using the PEST analysis. Furthermore, the SWOT analysis is business focused on the business unit while the PEST analysis focuses on the market. The Generic Competitive Strategy suggests looking into a reduction of prices to beat competitors and also focusing on a single product which may be disadvantageous to the business. Therefore, the tools chosen are the best to use to conduct the analysis.

Based on the tools that you selected, provide a brief analysis of your market, using those tools.

Using the PEST analysis to analyze the market for the business in China. First the influence of the government on the business. What is the role of the government in the market, does it control the prices in the market or not? Is there high expenditure on the business due to the government laws such a taxes and licensing? The economic situation of the region within with the business is operating is also looked into. Do the people have the money to keep the transactions or will the business result to reducing the prices of commodities which can be a loss to the business. The lifestyle of the peoples being served by the business is also an important factor to examine. The lifestyle of the people in the area, how is the pattern of buying off the people, the most consumed products by the people being served. This will enable the business to know the items to increase the supply and which to reduce the supply. The opinions of the people on the business and the products will also help to gauge the performance of the business.

Using the Poster's 5 Forces analysis, the ease with which the someone else can get into the area of operation is examined. The harder it is for another person to enter the field of operation the better for a business operating in that field. When other business can easily come in, it means competition may come in sooner or later. The effect of the introduction of a new product in the market is looked into. Will it reduce the demand for business products or not? The freedom of the customer and suppliers to choose the person to transact with is important. This will determine whether the business will maintain its customers and suppliers or not. If the market is competitive, the business has to weigh whether it will beat its competitors or not. Does the business have ways to stand out from the rest the competitors? This enables the fate of the business regarding the competition to be known (Bryman, & Bell, 2015).

References

Bryman, A., & Bell, E. (2015). Business research methods. Oxford University Press, USA. Sivitanides, P. (2017). Retail market analysis for development projects. Routledge Companion to Real Estate Development.