Competitive Strategy Techniques for Analyzing

Question: Discuss about the Competitive Strategy Techniques for Analyzing. Answer: Introduction: A vision statement provides information related to the purpose and values of the organization. It provides information related to where the company want to be. In addition to this, the mission statement provides information related to the processes through which attains the vision of the company. It provides information related to the primary objectives of the company related to the customer needs and values. Mission statement communicate the information related to the present which helps in the achievement of the determined goal in the future. Along with this, vision statement provides the information what the company wants to achieve in the future. Changes can be made in the mission and vision statement but there is a need to consider their alignment to the foundation of the organization (Sabrautzki, 2010). The vision statement of Billabong states that it focuses on establishing new standards in the board sports in a continuous manner by making changes in the lifestyle brands and experiences of youth. In addition to this, the mission statement of the company states that the company has a aim of expanding its business operations in different geographical locations. Besides this, it also has a purpose to create value for its customers and deliver returns to the shareholders . Yes, the vision and mission statement of the company Billabong International is impactful, succinct and inspiring as these statement explicit the aim and objectives of the firm. It states that the company is carrying out different business operations and activities to meet the needs and demands of its stakeholders (Sabrautzki, 2010). The stakeholders of the firm are those entities and individuals who have an interest or stake in the activities, processes and operations carry out by the business. In case of the vision and mission statement of Billabong, there is an emphasis on different stakeholders such as customers, shareholders and employees of the organization. The fulfillment of the needs and demands of these stakeholders helps in increasing the profitability of the company. Besides this, it also facilitates the company to gain competitive advantage over its rivals (Sabrautzki, 2010). Porters five forces model for Barracuda Inc Threat of substitutes: There is an increased number of substitutes available in the market due to the existence of large number of companies in the country. This the reason, that there is an existence of high threat from substitutes in the industry. Buyers can easily switch to substitute products available in the market (Porter, 2008). Intense industrial rivalry: There is an existence of intense competition in the market as there is an existence of approximately 2500 home furnishing firms in the market. This has result in the occurrence of highly competitive business environment in the industry (Porter, 2008). Threat of new entrants: There is also an existence of threat from new entrants as it requires low capital to enter into the industry. Besides this, no firm has a large market share in the country. The net profit of the companies existed in the industry ranges between 4 %to 5% (Porter, 2008). Bargaining power of suppliers: The bargaining power of suppliers is medium as there is an existence of large number of suppliers of home furnishing products. This enables customers to bargain with suppliers for the product (Porter, 2008). Bargaining power of buyers: There is an existence of high bargaining power of buyers as there is a presence of large number of firms in the market for the home furnishing products (Porter, 2008). The company might be successful and gain competitive advantage over other players in the market if it brings innovative products at low prices with high quality in the market. This results in attracting more number of customers towards the product (Porter, 2008). The three major parts of the external environment include social environment, economic environment and technological environment. Social Environment: It is requisite for the company to track the changes taking place in the tastes and preferences of the customers in order to fulfill their unmet demands. In context to this, Barracuda is required to understand the changing demands of the customers as there is an existence of large number of rival firms in the industry. Fulfillment of the demands and needs of the customers in a proper manner results in increasing the satisfaction level of the customers (Webster, 2010). Economic Environment: There is an existence of low entry barriers due to which new firms can enter into a market and grab the opportunities available in the market. This helps in increasing the sustainability of the firm. In context to Barracuda, there is an existence of 2500 home furnishing firms and the profit of the companies ranges between 4 to 5%. There is a need to bring innovation in the products as there is an existence of price competition among the firms in the industry (Webster, 2010). Technological Environment: Rapid changes have been taking place in the technologies used by different firms. It is necessary for Barracuda to adopt new technologies and make investment in research and development to bring new features in the home furnishing products to gain a competitive edge over its competitors. On these three aspects, it is necessary for the companies to collect information as it has a significant impact on the business operations and has affects the financial position and performance of the company. This also helps in analyzing different opportunities and threats available in the market for the company (Webster, 2010). There are different value chain activities that provides competitive advantage to Heartsongs which include procurement, inbound logistics and technological development. The company procures heart valves from the suppliers at the time of the demand of the heart valves by the customers. In addition to this, the company provides payment to the suppliers after the use of the heart valves in the surgery. The company has also made investments in research and development to adopt the new technologies available in the market to attract more number of customers (Dheur, 2015). The company has arranged an outsourcing of the transportation of the heart valves from the warehouses at a short notice by EdFex. EdFex has a secured warehouse where the heart valves can be stored easily and made available to the company at short notice. In this way, it helped a company to gain competitive edge over other rivals in the market (Dheur, 2015). References Dheur, M. 2015. Sustainable value chain management: delivering sustainability through the core business. Springer. Porter, M.E. 2008. Competitive Strategy: Techniques for Analyzing Industries and Competitors. Simon and Schuster. Sabrautzki, S. 2010. Strategies, mission, vision, goals. GRIN Verlag. Webster, R.M. 2010. Management of risk: guidance for practitioners. The Stationery Office.