Table of Contents
2.0 Competitive environment analysis.
3.0 Strategic fit analysis.
4.0 Recommendation for Toshiba.
Low price strategy.
5.0 Conclusion and recommendation.
Hitt and Hoskisson (2012) mentioned that Strategic management is a type of management for utilizing the opportunities and overcoming the challenges and threats of a business organization. Strategic management indicates the strategic planning to make alternative courses of actions for overcoming the future barriers of the business organizations (Koo, 2014) This assignment identifies the strategic management of Toshiba Corporation due to its recent poor profitability and performance. Toshiba Corporation is considered the largest production firm. Most of the products of the Toshiba Corporation include computers, television, tablets, printers, and a digital instrument. Toshiba Corporation already has established a good brand image in the UK market by providing goods and products at tolerable prices and good quality (Toshiba, 2018).
This assignment paper finds the proper strategies for identifying the causes of poor performance as well as the appropriate techniques for removing the poor performance. Firstly; this assignment paper describes the PESTEL model for evaluating the external factors of the environment of the business. Secondly, this assignment paper identifies and describes the competitive position of Toshiba Corporation by analyzing Porter’s Five-Force model. Thirdly; this assignment paper identifies and evaluates the internal issues by applying a SWOT analysis of the Toshiba Corporation. At the last stage; this assignment paper mentions some strategies and recommendations for removing the all weaknesses and threats of the Toshiba Corporation.
2.0 Competitive environment analysis
Porter is the developer of the Five-Force theory and by using this theory a firm can identify the competitive position in the market in an effective way (Kotter, 2014). Porter suggested the key 5 factors that affect the competitive position of business organizations in the market. The first one is buyer strength, the second one is supplier strength, and the third one is a new entry and the fourth one is substitution threat and the last one is competitive rivalry (Porter, 2015).
The Five-Force theory considers only the external factors of the business environment (Thomas and Wilson, 2015). This model is prepared by analyzing the estimation of the future conditions of the market (Weihrich and Cannice, 2016). However; this model has a significant role in the identification of a firm’s strengths in the market as well as the weaknesses of the firm (Kotter, 2014).
Threats posed by new entrants: The threat level from new entrants is lower because new entrants do not have enough capacity to hold the market share and customers overnight (Kotter, 2014). They require more and more funds and compete with the existing well-known brands in the market. Since the existing firms have already established their brand image in the market, they don’t require extra money for advertising their products and services (Johnson and Scholes 2017). On the contrary; the new firms don’t have a brand image in the market. For this reason; they require extra money for advertising their products and services in the market. Toshiba Corporation is a well-known brand; that is why; they don’t require extra money for advertising their products and services (Toshiba, 2018).
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Supplier strength: A firm can identify its market position and condition by analyzing the strength of the suppliers (Porter, 2015). In the case of Toshiba Corporation, they can also evaluate the market position and condition by analyzing the strength of the suppliers. It has no doubt that Toshiba Corporation requires several kinds of raw materials to run smooth production functions (Toshiba, 2018). For this reason; they should consider the strength of the suppliers and try to reduce the strength of the suppliers. Toshiba Corporation should not depend only on one supplier but more suppliers to minimize the strength of the suppliers.
Buyer strength: A firm can identify its market position and condition by analyzing the strength of the buyers (Thomas and Wilson, 2015). Toshiba Corporation also evaluates the market position by analyzing the strength of the buyers. Normally the customers of Toshiba Corporation are purchasing products occasionally due to long-lasting products (Toshiba, 2018). But sometimes the competitors provide some facilities for the customers that maximize the strength of the customers. At this time; Toshiba Corporation should aware of this factor and take actions for minimizing the bargaining power of the buyers.
The threat posed by substitute products: A firm can identify its market position by identifying the availability of the substitute companies as well as products (Thomas and Wilson, 2015). In the case of Toshiba Corporation; these types of threats exist in the market. There are various types of the electric brand which offers the same products and services as Toshiba Corporation. At this time; Toshiba Corporation should aware of this factor and take action for minimizing the threats from substitute companies as well as products (Toshiba, 2018).
Competitive rivalry: Competitive rivalry is an important issue for measuring the competitive position of the business organization (Porter, 2015). In the UK market, this rivalry situation has increased rapidly. Toshiba Corporation competes with well-known brands including SONY, AB Electrolux, and LG Electronics (Toshiba, 2018). For this reason; Toshiba Corporation should aware of this factor and take actions for ensuring ethical and reasonable competition with the competitors
3.0 Strategic fit analysis
One of the important methods of evaluating the Strategic fit of a firm is the SWOT analysis. SWOT stands for strengths, weaknesses, opportunities, and threats (Weihrich and Cannice, 2016). This analysis is considered as the most effective technique for analyzing the available opportunities and threats of the business organization (Weihrich and Cannice, 2016). However, the SWOT analysis also depends on estimated data and information (Kotter, 2014). But the importance of this analysis can’t be ignored………….