A Corporate Management Team Essay

1083 Words Jul 18th, 2015 null Page
2. In order for a corporate management team to diversify they should consider the five Porter forces, potential new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitutes products, and rivalry among competitors. A potential new entrant is a way to enter the industry through technology, sales force, physical assets, machinery, and access to sales channels and suppliers. Bargaining power of buyers uses the Internet to gather information about products, services, and competitors. The Internet influences the bargaining power of suppliers because the good and bad media reaches a plethora of buyers. The Internet causes the threat of substituting products because of price difference and the access to knowledge about the product through various reviews. The rivalry among competitors is influenced by the other four proceeding forces as well as cost and product differentiation. The management should collect information off of the Internet about competitors, social media, and other factors that might influence diversity.
3. If I were a middle manager helping the cost-cutting strategy I would focus on the three strategies differentiation, cost leadership, and focus to avoid hostility from subordinates. Differentiation rewards employee innovation, creates strong marketing abilities, strong coordination among departments, inspires creativity, and corporate reputation for quality or technology leadership. The cost leadership maintains the standard…

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