- Utilize the following tools of external environmental analysis to assess an or
ID: 390415 • Letter: #
Question
- Utilize the following tools of external environmental analysis to assess an organization's strategy:
Macro-environmental analysis
Porter's 5 Forces Analysis
Dynamic Industry Analysis
Strategic group mapping and positioning
Competitive intelligence
Key success factor analysis
Industry prospects analysis
- Identify opportunities that if taken advantage of may increase an organization's competitiveness.
- Identify threats that if left unchecked may hinder an organization's competitiveness.
- explain the following are 8 concepts frequently used to analyze external environments:
Dominant Economic Characteristics
Macroenvironmental Analysis
Five Forces Model of Competition
Dynamic Industry Analysis
Strategic Group Mapping
Competitive Intelligence
Key Success Factors
Industry Prospects
Explanation / Answer
Company E Bay:-
Macro-environmental analysis:
A change in inflation rate has always had implications on eBay’s performance, globally. Exchange rate between USD and other currencies has always been affecting eBay’s profit margins. Tax complications in respective countries too affect the business.
Day by day rising online activity is challenged eBay to develop it’s delivery capability to deliver services promptly. Changing consumer preference or taste also challenges eBay to add more variety of products. Rising demand for high quality service is also threat but should be looked as an opportunity to do better.
Porter's Five Forces for eBay:
Competitive Rivalry- Within The Industry Medium to High, Amazon, Snapdeal, Alibaba etc. Big and small players in the industry decrease the market share for e Bay
Bargaining Power Of Customers- High, due to variety of products available at huge discounts on single or bulk product buying
Threat Of New Entrants- Medium, it’s only from small emerging players in the market who are trying to sell niche products like Bulk MRO, Industrybuying.com etc.
Bargaining Power Of Suppliers- Low To Medium, huge number of vendors for alternative supplies has reduced their own bargaining power for securing better profit margins
Threat Of Substitute Products- Low, e bay posses threat only from niche market players, unless and until there is any new technology disruption ecommerce player
Dynamic Industry Analysis:
Strategic group mapping and positioning:
Competitive intelligence:-
Key success factor analysis:
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