Adrenaline Air Sports Problem Statement Essay

1767 Words Oct 8th, 2007 8 Pages
Executive Summary

Problem Statement

What strategies should Adrenaline Air Sports implement in order to stay competitive in the region and ensure the sustainable profit growths?

Purpose Statement

The purpose of this report is to analyze the current market situation of the company and to recommend courses of action to address the question raised above.

Alternative Courses of Action

1. Continue the business
2. Discontinue the business

Methods of Analysis

SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. The Five Forces model of Porter is an outside-in business unit strategy tool that is used to make an
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SWOT Analysis is a simple but powerful tool for sizing up a company's resource capabilities and deficiencies, its market opportunities, and the external threats to its future well being. SWOT stands for strengths, weaknesses, opportunities & threats.

The Five Forces model of Porter is an outside-in business unit strategy tool that is used to make an analysis of the attractiveness (value...) of an industry structure. The Competitive Forces analysis is made by the identification of 5 fundamental competitive forces:

1. the entry of competitors (how easy or difficult is it for new entrants to start to compete, which barriers do exist)
2. the threat of substitutes (how easy can our product or service be substituted, especially cheaper)
3. the bargaining power of buyers (how strong is the position of buyers, can they work together to order large volumes)
4. the bargaining power of suppliers (how strong is the position of sellers, are there many or only few potential suppliers, is there a monopoly)
5. the rivalry among the existing players (is there a strong competition between the existing players, is one

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