Internal and External Analysis to Find the Company's Core Success Factor - Case Study Example

Internal Analysis The company has seen a sea change in its outlook and viewpoint as far as market presence is concerned. The most prominent aspect that is being highlighted for the internal analysis is that, the company has recognised the value of innovation and research based growth. The investment is made on various aspect of R&D, be it the VIP centres, which run 24 hours or the capable engineers and research staff. The company has also made the mind frame regarding the market position. The very act of pulling out from discount stores and getting into high-end store signifies that the company want to carve out its niche in the up market. Now it is achieving more focused growth in its target market. The company has also enhanced its capability to continuously bring new product lines in the market. Not only that, it is also upgrading the product with added utilities. This way it is also engaging the consumers for long-term participation. Here the speed, at which the product line is launched or upgraded, has a strategic importance. The capability of company to optimise all its internal resources to increase its efficiency and effectiveness has given results. It is remarkable that the company is showing improvements in its financial as well as operational results irrespective of the economic crisis prevailing among Tiger Economises in the Far East. It goes unsaid that the impetus behind all this is by the visionary and capable leadership. The strategies that have been laid out by the top management in order to counter the present state of affairs are remarkable. The company on the basis of its improved internal effectiveness and efficiency has defied the competition. Moreover with its frequent innovative launches, it is putting itself before all its competitors. Macro Analysis Any company or business is affected by various internal as well as external factors. Though both of them are of prime importance while setting strategies, it is the external factor, which is more uncertain in nature and cannot be predicted with preciseness. Thus creeps in the risk associated with these uncertainties. The macro analysis is endeavouring to have glimpse of that. It is evident that globalisation is opening doors of opportunities for the business. But at the same time it is also putting great competitive pressure on the company to perform effectively. At the vagaries of competition, company is surviving against all odds. The economic turmoil of Far East, which is the home location for the company, is casting its effect. Thus the decision of the company to search and penetrate other markets like that of US is remarkable. Moreover, it is not just entering new market, but at the same time giving tough competition to the local player there. This itself shows the strength of the internal operations. The increasing intergovernmental commitments and agreements to develop trade zones for mutual benefits, is both an opportunity as well as threat to the company. The competitiveness on price is greatly dependent on the taxation regime of the countries involved in trade. The company is also facing pressure form the environmental conservation groups. E-waste disposal is becoming a big menace with increased usage. Moreover the policy of the company to frequently upgrade and bring new product lines doesn’t go well with the green policy until company resorts to a well-defined structured framework. Industry Analysis The industrial stakeholders are of continuous concern for any company. Be it the supplier, customer, competitor and any other stakeholder. Here the industry, in which the company is into, is capital-intensive. This proves to be a natural immune for new entrants. Though appreciable extent of knowledge based skill is mandatory desired in this industry. By the virtue of the nature of this industry, the products or designs are imitable and hence not sustainable. Thus it becomes very difficult for the company to maintain a differentiation edge over its competitors. The company ahs got into long-term agreement with its suppliers. This in a way is better for bringing down the cost of raw material and sub assemblies. But at the same time, over dependence on few suppliers may also prove to be detrimental sometime. Thus it must be the concern of the company to maintain a respectable trust level among each other. In the whole scenario, it is the consumer, which is always benefited. The continuously southward progression of price level in order to gain maximum market share is directly affecting company’s financial health. Thus it becomes very necessary for the company to maintain and upgrade the brand awareness level. At the same time it should also get the consumer into long-term association through various loyalty programs. Overall it can be said that the company is performing well on the industrial rivalry front. But it must keep its strategy so that it is always capable of doing so. Thus it is needed that a good succession planning should be in place so that the company can never get deprived of a visionary leadership. Gap Analysis The case study put forward has its underpinning on the financial performance of the company and the ambience. This may lead to develop a myopic view on the performance of the company. It is because performance has much more to consider than just numbers. Going further, the analysis assumes that the competitors continue on the present state of affairs. This can induce a major gap in the analysis in the sense that the dynamism in the industry is vast. The analysis is not specific in terms of the objectivity of the achievable. The quantification is still doubtful and can be weird depending on the future outcomes. The time frame is also not provided in the analysis and hence the subjectivity creeps in. In a nutshell it can be said that the analysis has outlaid the broader picture or the overall strategy of the company. The details and the tactics need to be synchronised with this strategy to fetch the desired results. Else it would not be possible for the company to achieve the competitive edge over its rivals. The core success factor behind the turnaround it the coordination between their strategies and tactics till now. If maintained further, the company will always be ahead of competition. Read More