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Strategy - Outline Example

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The retail industry, which the supermarket exists is often characterized by much competition from new companies joining the industry to exploit the…
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Download file to see previous pages... This development has prompted the company to develop a competitive strategy that can help it create competitive advantages and a sustainable market position (Low & Arain 2010, 15).
One of the important approaches towards increasing efficiency in business activities is the use of strategies that reduce a company’s operational costs. This is important since companies can take advantage of the reduction in costs to maximize on the returns from the services and products they sell. Across various businesses in different industries, competitive advantages have often been achieved when firms attain high levels of profits from the activities they engage in.
It is important to point out that particular industry structures play a crucial role in determining the amount of profits that business get from their operations (Plunkett & Research, 2010, 47). This is because; the particular forces shaping the industry and the same ones that determine the profits those firms derive from their operations.
In the retail industry, like other industries, the particular forces affecting company and business performance include competition, like that which Wm Morrison is facing currently, the bargaining muscle in sellers and buyers of goods and services, as well as availability of complements and substitutes in the products and services being offered in the market(Worthington & Britton 2006, 13).
The porters five model is used in making an analysis of the viability of business towards making competitive advantages and market position (Sadler 2003, 32; Grant 2008, 51). Businesses that want to grow and expand are expected to make an environmental planning and analysis on order to align their strategies accordingly.
According to the porters five model, Wm Morrison has not received any major threats with the entry of new suppliers in the market. This can be attributed ...Download file to see next pagesRead More
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