Strategic Management (1,000 word essay in APA format). Book needed for assignment
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Smith_Week_2_201812072112159921.docxRunning head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT 2
Strategic Management (Pandora Jewelry)
Latoya Smith
Bethel University
Strategic Management MOD 440
Dr. Angelo Lamar
December 6, 2018
Your Abstract goes up here.
Abstract Comment by Lamar, Angelo: Title is never in bold. Look at your sample paper in your handbook before submitting your paper.
Pandora Jewelry has registered significant levels of success over the years in their quest to gain a significant market share and competitive advantage. An assessment of their macro-environment resulted in a PESTEL analysis that reveals the (political, economic, social, technological, environmental and legal factors) all in the external environment. In addition to the above, a review of the five forces of competition reveal the existence of competitors in the similar market as that of Pandora with difficulties of new entrants joining but high cases of competition, high customer bargaining power and possibilities of substitutes. The analysis revealed low bargaining power for the suppliers. The third model of analysis included the VRIN test that examined the (value, rareness, imitability and non-substitute). In this, the imitability factor was of concern as compared to the others. Lastly, a SWOT (Strength, Weakness, Opportunity, Threats) analysis is conducted on the data revealing the internal strengths and weaknesses of Pandora also assessing the opportunities and threats the company faces. Comment by Lamar, Angelo: Put these 3-words after the parentheses. Comment by Lamar, Angelo: Go ahead and put this in parentheses because whenever you write an abbreviation of a word or phrase you must spell it out so later on in the paper if you decide to use the abbreviation again you will not have to spell it out because the reader will know what it means. Comment by Lamar, Angelo: Put these 3-words after the parentheses.
Strategic Management (Pandora Jewelry)
PESTEL Analysis of Pandora Jewelry Comment by Lamar, Angelo: Question: Where in your APA handbook does it show the title of a paper in bold font? Never. Titles are to be written in normal font.
Gamble, Thompson and Peteraf (2016) assert that evaluating the external environment of a company is one way to understand the ability it has to gain and sustain a competitive advantage. The external environment is examined adequately using the PESTEL analysis that reveals the political, environmental, social, technological, environmental and legal factors (Kozlinskis, 2016). Conducting a PESTEL analysis of the external environment of Pandora Jewelry reveals the following. The political environment in Denmark has provided the company with a stable operational environment that has favored the development of the company and expansion to new markets. The economic factors of the external environment on the other hand indicate to the ability of the economy of the domestic or international market to sustain the company strategic objectives. The GDP of $324.9 billion of Denmark is a contributing factor towards the economic environment favorable for Pandora Jewelry. The social environment in Denmark also favors the development and competitive abilities of Pandora Jewelry in the domestic and international market. The unique nature of the social and cultural factors of Denmark has allowed the company to easily cope in other international markets with a diverse social environment. On the other hand, Denmark has also gained a strategic position in terms of technological developments with advancement in technology contributing to success in business. The technology is used in the molding and designing of the jewelry products. Technology is also used in examining the market and interacting with its competitors to ensure a sustainable competitive advantage. The ability of Pandora to contribute to Corporate Social Responsibility including climate change is an indication of its commitment to meeting the existing standards in the external environment. Lastly, the legal environment has created a level of flexibility and control allowing companies to operate freely in the Danish market.
Five-Force Model of Competition for Pandora Jewelry
According to Gamble, Thompson and Peteraf (2016), the business model embraced by the company is an essential contributor of the gained competitive advantage. The decision on the business model applied is also reliant on the analysis of the competition with the consideration of the five forces model in assessing the competitive environment. The competitive environment in which Pandora operates has five main competitive forces that include the suppliers, customers, new entrants in the jewelry market, the presence of substitute products and high levels of rivalry and competition. The suppliers of Pandora according to Kleinjan, Bendtsen and Naujokaite (2014, January 21) have a limited bargaining power as evident with the large number of possible suppliers of gold, diamond, silver, paper and wood. On the other hand, the customers have a higher bargaining power as there are many providers of jewelry to choose from in the market. The company faces a high threat from substitutes that have affected the pricing and market for jewelry products. The low prices set by the substitutes to those of Pandora are a factor to consider. The jewelry market is however not easy for new entrants. For this reason, the threat of new entrants is limited. On the other hand, there is a high degree of rivalry in the companies providing jewelry products both domestically and internationally that compete with the Danish company for the existing market. Therefore, the strongest competitive pressure that Pandora faces is the high bargaining power of the customers, the presence of substitute products and the high degree of rivalry in the industry that threatens the performance and competitive advantage of the Danish company. Comment by Lamar, Angelo: Year only. Comment by Lamar, Angelo: Delete. Comment by Lamar, Angelo: Start a new paragraph here. A paragraph should be no longer than a half of page.
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VRIN test for Sustainable Competitive Advantage Comment by Lamar, Angelo: Since we do not know yet what ‘VRIN’ means yet leave it out the heading here.
On the other hand, the tangible and intangible resources of Pandora assessed through the use of VRIN reveals the sustainability of their competitive advantage over the years. Gamble, Thompson and Peteraf (2016) asserts that attaining competitive advantage is a pursuit of many businesses. However, the challenge is sustaining the competitive advantage earned over the years. The VRIN analysis that looks at the value, rareness, imitability and non-substitute elements that contributes to the assessment of the competition in the market. The value element looks at the valuable nature of the products offered by the company. The lesser the value of the products the lesser the sustainability of the competitive advantage that the company gains. In the case of Pandora, the products provided to the market attract high value and hence can help contribute towards building long-term sustainability. However, the rareness of the products also is indicated with the high cost of the raw materials on the international and domestic markets. The high prices of gold, silver and diamond that are raw materials in the market have not only limited entry of new competitors but enhanced the rareness factor for Pandora. The main problem that Pandora faces in its market is the high level of imitability of its products. The presence of substandard products on the market is a factor affirming to this disadvantage in turn affecting sustainability of the competitive advantage of the company. The imitability also is affected by substitutes that are the last factor under VRIN analysis. The presence of substitutes is a factor affecting dealers of jewelry products. Therefore the sustainability of the competitive advantage for Pandora is enhanced by their value and product rareness. Comment by Lamar, Angelo: Spell this word out to show what the abbreviation means.
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SWOT Analysis of Pandora Jewelry
Strengths of Pandora Jewelry
The ability of Pandora to set trends has set it apart from the competition and enables it to continue generating a significant competitive advantage. The company’s established global presence is another area of strength including the end to end control established to reduce interference with its products. The other strengths of the company include the repositioning of the jewelry with lower prices implemented to deal with the assumption that jewelry products are expensive. The right strategy in distribution and training of franchise are added strengths of the company. Comment by Lamar, Angelo: Something from your reading to enhance this more.
Weaknesses of Pandora
The excessive focus on jewelry for the company is a weakness including the poor communication strategy that it has employed in its business over the years. Poor planning in the company with irregular price variations that affect market perception on the products is another weakness that threatens the position of Pandora on the jewelry market. Comment by Lamar, Angelo: Expound more here. This is a very short paragraph. Do not count words, just write and finish the thoughts here.
Opportunities for Pandora Jewelry
The changing consumer preferences presents an opportunity for Pandora to examine in today and the future markets that it seeks to dominate. The continued growth of shopping habits and a preference for luxury jewelry products presents an opportunity that Pandora may rely on to build its future dominance and competitiveness. Comment by Lamar, Angelo: Support from your reading here.
Weaknesses of Pandora Jewelry Comment by Lamar, Angelo: Look above here. You already wrote about the weakness. What about the threat?
The main threat faced by Pandora in its line of business is competition. The high level of competition between companies involved in the jewelry market are a factor of weakness that may lead to loss of competitive ground and result into collapse of Pandora. Comment by Lamar, Angelo: More supporting information here.
References Comment by Lamar, Angelo: Move this down to the next page. You have to go back and check your paper before submitting it or you will lose points for your format here. Stop rushing and double check your work.
Gamble, Thompson, A. A., & Peteraf, M. A. (2016). Essentials of Strategic Management: The Quest for Competitive Advantage. New York: McGraw-Hill Education. Comment by Lamar, Angelo: Go back and look at your course book to see if the words are capitalized or in lowercase .
Kleinjan, R., Bendtsen, N. H., & Naujokaite, S. (2014, January 21). Porter's five force model:. Retrieved from https://prezi.com/eaygeuz4qvin/porters-five-force-model/
Kozlinskis, V. (2016). GROWING INSTABILITY OF THE SOCIO-ECONOMIC SYSTEM. Journal of Business Management, (11), 4-135.
Ms. Smith,
