Question

1. Be able to explain each of the following terms: strategy, sustainable competitive advantage, core competency, and business model
2. Explain how each of the above terms can affect an organization’s strategic planning or direction
3. What are the riving forces? Name several driving forces and explain how each can change competitive conditions
4. What is a SWOT analysis? What is its purpose? What does Each letter represent?

Answer 1

Strategy is planning made by organisations to counter the competitions plan and thinking.

Sustainable competitive advantage is derived when no other firm can imitate a firms attributes or abilities to exceed.

Core Competencies are convergence of varipus resources and skills differemtiating an organisation in the marketplace.

Business model is nothing but strategic idea of how organisation operates and create svalue and profitability.

Each of above terms have an ability to drive profitability, long term growth, market leadership as amalgamation of all above brings sustainability and robustness.

Driving forces include:

1. Competitive rivalry- If this is high then organisation needs to innovate and can also impact its profitability in long run
2. Bargaining power of buyers- If this is high then organisation needs to cut down prices and offer buyer preference based products /services
3. Bargaining power of sellers- If this is high organisation can charge prices beyond market rates.

SWOT Analysis is complete 360 degrre analysis of current health of organisation and its key challenges and opportunities. It is aimed to understand the current position and how it can eliminate barriers to success.

S - Strength

W - Weakness

O- Opportunity

T- Threat