Strategic Planning and External Analysis Tools Essay
Strategy is a roadmap designed to route the direction of the organization towards achieving its goals. Through an understanding of the organization’s vision and mission and the matching of resources and skills to the environment, the company can formulate and implement strategic plans to achieve long-term sustainable competitive advantage, meet the needs of consumers and satisfy stakeholder’s expectations (Johnson, Scholes and Whittington 2004).
Before formulating a strategy, an organization has to gauge its current position in the market using strategic analysis. This involves the use of internal and external analysis tools to gain …show more content…
Edwards (2012) article talks about GameStop’s shifted efforts into the refurbishing of Apple products to counter a declining market. Using the Boston Consulting Group’s Growth Share Matrix (Phadtare 2011), this strategy shows high return potential. With the decline of the gaming industry, sales fell by 25% from last year (Tassi 2012), GameStop’s former ‘Star’ which is the sale of new and used gaming hardware and software, has shifted into a ‘Cash Cow’ due to the decline of market growth. This shift presents an investment opportunity for ‘Question Mark’ to become a ‘Star’, through the conversion from a console game supplier, into the repair and resale of Apple gadgets. However, with the dwindling interest of consumer to purchase overpriced resale items (Munarriz 2012), GameStop’s ‘Cash Cow’ would eventually shift to a ‘Dog’, providing difficulty in profit generation. There