Bargaining Power And Strategic Management In Business Case Study

Bargaining Power And Strategic Management In Business - Case Study Example Suppliers would have low bargaining power as they risk losing the account of one of their largest customers if the client is not satisfied by the terms offered. With many suppliers being present in the industry, it would be very easy for asos.com to switch suppliers thus weakening the position of suppliers in the market. Bargaining Power of Customers Asos.com is heavily reliant on the internet as its main channel of distribution. It does not have a presence as a traditional brick-and-mortar store and thus needs to target a young, fashion-conscious market segment and provide them with an interactive, pleasurable online shopping experience in order to drive sales. Secondly, the number of internet buyers in the UK has increased tremendously and with internet access spreading and the number of retailers offering online services also increasing at a fast pace, customers have more options to seek out the bet prices and switch firms, thus providing them with significant buying power over fi rms and minimizing the risk of exploitation. Fashion retailing being very concentrated in nature and the fact that asos.com does not have any differential advantage over its rivals suggests that the industry is highly competitive and customers exert a lot of influence over firms in the industry and dictate buying patterns. The threat of New Entrants A quick look at the group profits tells us that the industry is a highly attractive one and opportunity seekers will find it quite a lucrative industry to enter into. Thus profitability might eventually decrease if the number of players operating in the market increases further. However, it must be noted that customer loyalty, access to distribution, achieving economies of scale and capital requirements might present significant barriers to entry.

Strategic Choices for Coca Cola Company Research Paper

Strategic Choices for Coca Cola Company - Research Paper Example On the other hand, weaknesses of the company are negative publicity; health issues attached with the brand, some brands of the company are less popular, poor performance in North America and decline in cash from operating activities. Examination of the external environment demonstrates opportunities and treats of the company. Uncovered market, growing bottled water market, buy out competition and acquisition of the intense competition can be proves opportunities for the company. On the contrary, increasing health consciousness, increased competition from local and international players, legal issues, health ministries of various developing countries are imposing threats on the company (The Coca-Cola Company, 2011). In order to avail the maximum benefits of the strengths and opportunities, the company is advice to handle the threats and weaknesses very carefully. In this context, creation of competitive advantage is recommendable. When a firm has an edge over its competitors then it is said to have a competitive advantage. According Michael Porter, there are two types of competitive advantage viz cost advantage and differentiation strategy. Coca-cola achieved its competitive advantage by delivering same benefits as competitors but on lower cost i.e. cost leadership. However, both local and international competitors pull down its rates to the level of Coca-cola which ended its cost leadership. Then it came up with benefits that exceed those of competitors which are called differentiation strategy. This strategy worked in favor of the company as it positioned the company with distinctive taste in the market. It also added some snacks to its product line which again made its look different (Thinki ng made easy, 2009). The strategic choice of the company is based on the resource based view concept. This concept focuses on creation of competitive advantage by utilizing firm’s resources