The competitive analysis according to dess mcnamara

Info icon This preview shows pages 8–11. Sign up to view the full content.

The Competitive Analysis According to Dess, McNamara, & Eisner,2016, a competitive analysis consists of important factors that are relevant to a firm’s strategy, including competitors, customers and suppliers. A competitive external analysis is important because it will help the company to comprehend what the competitors are doing to gain the market, and how the changes will influence their organization in a positive way, and StilSim will be able to have a better look into what is going on out there to formulate the company’s strategic plan while they maximize the company’s profit. To progress with this subject, I would like to introduce the definition of the Five Forces developed by Michael E. Porter, which is considered to be an “analytical tool for examining competitive environment” ( Dess, McNamara, & Eisner, 2016, pg. 52)
Image of page 8

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

STRATEGIC PORTFOLIO Page 9. Threat of new entrants: The threats of new entrants refers to the possibility that new competitors may erode the profits of established firms in the industry. (Dess, McNamara & Eisner, 2016) On the meeting with the president of StilSim, Mr. Simmons did not see Don Wilson as a threat, and he did not worry about changing the segment of the company. This could be a threat if changes do not take place, however; I see this as a great opportunity for the future of the company. The same opportunity Don is having by exploring a new market, is the same opportunity StilSim may have if we start to open our horizons. The bargain power of buyers: Buyers have a bargain power when they are competing with lower prices, higher quality of services, and placing competitors against each other, and this scenario may become a threat to the rival company. It is evident that if StilSim do not make considerable changes to meet the expectations of the competitors, the StilSim will be losing even more business opportunities. In this situation, we can clearly see that there is a power of the buyer. The bargain power of suppliers: Suppliers have a bargain power when they raise prices and reduce the quality of purchase goods and services. (Dess, McNamara & Eisner, 2016) In this scenario, the bargain power of supplier is what shapes the competitive structure of an organization. Taking into consideration StilSim scenario, their providers could be customers assigning them jobs positions to be filled. Competitive rivalry: The competitive rivalry happens when competitors feel the pressure and take actions when an opportunity occurs to make improvements. (Dess, McNamara & Eisner, 2016) We already know that the competitors situate in a better position than StilSim, using advantage of the technology and other resources such as video interview, applicants with high qualifications, and a well-trained staff. StilSim is looking forward to being able to be on the
Image of page 9
STRATEGIC PORTFOLIO Page 10.
Image of page 10

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 11
This is the end of the preview. Sign up to access the rest of the document.
  • Summer '17
  • StilSim

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern