In the name of ALLAH I begin...
HELLO!!! long time no see, today I want to update my blog with a new topic in strategic management.
Previously, during the lecture I learned about company's external environment. In this topic we focus on the PESTEL analysis and and five competitive forces. PESTEL analysis focus on political,environment, socialeconomic, technology, economic condition and legal. Meanwhile, the five forces are :
- new entrance
- rivals
- suppliers
- buyer
- substitute
new entrance - moderate to enter
rivals - high competition because of many players in the industry ( Toyota,Ford,Honda and Proton)
Suppliers - many suppliers because of high demand in manufacturing the car such as tire, spare-part
Substitute - substitute for automobile industry are all public transport.
Buyer - Bargaining power for customer is low because most of the price is fixed.
In conclusion, we can say that automobile industry is a conductive market.
other than that we also learn about strategic group mapping. It helps the industry to identify rivals strategy. As an example, automobile industry.
High
* kia/merz *Honda/toyota
price/quality
image
low * perodua/Proton
Narrow board
This simple figure, shown that proton and perodua well known in the automobile industry but the quality of the product is low. Meanwhile, Honda and Toyota also well known and have high quality in automobile production. On the other hand, Kia and Merz have narrow market in the industry but have high quality of car.
Besides, we also learn about the key success factors. For example, Nestle which is the key success is make sure all the household have their product.
I think that all so far. This is based on what I understand from the topic. Jazakallah (^_^)
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