Strategic Planning and External Analysis Tools Essay

1702 Words May 3rd, 2013 7 Pages
Section 1: Summary of key concepts and ideas from the lectures, tutorials and readings (500 words)

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
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However, Campbell’s weakness lies in the high selling price of its new line of products, three times the price of a can of normal soup. This along with the threat of cheaper alternatives by their competitors, such as Healthy Choice, may prove detrimental to Campbell’s success. Nevertheless, Campbell has had previous successes with higher priced products due to their strength to innovate their products towards the needs of the consumers. They also invest millions in target marketing and merchandising to extend its reach to consumers (Todd 2012). Therefore, it is a good strategy.

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

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