SIM336 Strategic Management Assignment with Toshiba (GC0422)

Table of Contents

Executive Summary.

1.0 Introduction.

2.0 Finding.

2.1 External environment analysis.

PESTEL Analysis.

PESTLE analysis to Toshiba.

2.2 Competitive environment analysis.

Porter’s Five-Forces Model

Porter’s Five-Forces analysis to Toshiba.

2.3 Internal environment analysis.

Value Chain Analysis.

Value chain analysis of Toshiba.

3.0 Strategic fit analysis of Toshiba.

3.1 Strengths.

3.2 Weaknesses.

3.3 Opportunities.

3.3 Threats.

4.0 Key issues faced by Toshiba.

5.0 Strategic options for Toshiba.

5.1 Bowman Strategy Clock.

Low price strategy.

Hybrid strategy.

Differentiation strategy.

Conclusion.

8.0 Recommendation.

1.0 Introduction

Strategic management is a process of management by which firms can catch the opportunity and removes the weakness of the firm. It is a type of strategic planning for the business (Spender, 2016). This report explores strategies for Toshiba Corporation in light of their poor performance over recent years. Toshiba Corporation is a large manufacturing firm. The main products of the company are computers, television, tablets, printers, and other digital equipment. In the UK, Toshiba Corporation offers most of its products to customers at a reasonable price with better quality (Toshiba, 2018).

This report identifies the strategies that help to identify the reasons for poor performance and to overcome the poor performance of Toshiba Corporation. Here, this report first evaluates the external factors of the environment which affects the firm by applying the PESTEL theory. This report also evaluates external factors of the environment which affects the firm to apply PESTEL theory. Then, this report measures the competitiveness of the market by applying Porter’s Five-Force theory. Next, this paper evaluates the internal factors of the environment by applying the analysis of the value chain. Finally, this paper discusses strategies for Toshiba Corporation and gives some recommendations to Toshiba Corporation for enhancing its performance.

2.0 Competitive environment analysis

Five-Force model is suggested by the porter. It is a method by which a manufacturing firm can evaluate the competitiveness in the market (Kotter, 2014). It encompasses 5 factors including buyer strength, supplier strength, a new entry, and substitution threat and competitive rivalry of the market (Porter, 2015).

This model focuses on external competitive factors but ignore firm-specific factors (Kourdi, 2016). Although this model plays a significant role in controlling and shaping the industry, this model does not consider the factors as influential forces (Rumelt, 2015). This model is industry-based and suggests businesses how to adopt the revolutionary changes that happen in the industry. However, this model fails to demonstrate a multi-industry conglomerate (Kotter, 2014).

Threats posed by new entrants: New industries face various threats because they need more expensive to run their operational activities. The old business firms do not need any additional funds for the advertisement (Johnson and Scholes 2017). But new industries require more funds for advertising their new innovation and establish their brand (Market Research, 2018)

Supplier strength: Supplier strength is also an important tool for evaluating market competitiveness. Toshiba Corporation needs various types of raw materials for producing its products. They collect raw materials from different suppliers. Depend only one supplier increases the bargaining power of the supplier (Drejer, 2016). But depend on the multiple suppliers slightly decreases the bargaining power of the suppliers.

Buyer strength: The products of Toshiba Corporation have a long life. So, buyers normally buy products occasionally. The competitors of Toshiba Corporation also offer various types of opportunities that also increase the bargaining power of the buyer. But buyer strength is very limited and they can’t give pressure on the suppliers to reduce the price of raw materials (Euromonitor, 2015).

The threat posed by substitute products: Substitute threat is also a vital threat to the electric industry. Customers can buy products from any source that fulfill their demand. Normally, this threat is comparatively lower than other threats. That’s why; suppliers get more power than customers (Market Research, 2018).

Competitive rivalry: Now it is the day of the competition. So, competitors’ rival is a common factor in the UK. In the UK, the number of competitors of Toshiba Corporation is numerous and it is increasing day by days such as SONY, AB Electrolux, and LG Electronics. Most of the rivals occur between large firms and which have more resources and which have more capabilities (Drejer, 2016).

3.0 Strategic fit analysis

The strategic fit of a business can be analyzed using the SWOT tool. SWOT refers to strengths, weaknesses, opportunities, and threats (Spender, 2016). It is an effective tool to analyze problem domains including organization, organizational unit, team, or individual. It also provides multi-level analysis and is applied neutrally that focus on business objectives (Rumelt, 2015). However, this model does not have any weighting factors and creates ambiguity and provides subjective analysis that may not give accurate data (Kotter, 2014)……………

Strategic Management