Understanding the various competitive forces that affect strategic planning.
Do some research and find an analytical tool that aids in understanding the various competitive forces that affect strategic planning. Although all organizational sectors potentially face similar kinds of competitive forces, each sector and/or organization may face unique factors that affect competitive pressure at any given time, depending on varying circumstances.
For instance, you may investigate “supplier bargaining power from foreign markets” or “dealing with emerging companies in the cell phone (or tech) industry.”
One analytical tool that can be used to gain insights into the competitive forces affecting strategic planning is Porter’s Five Forces Model. This model, developed by Michael E. Porter in 1979, provides a framework for analyzing an industry’s competitive landscape and potential profitability (Porter, 2019). The five forces—rivalry among existing competitors, threat of new entrants, bargaining power of suppliers, bargaining power of customers and threats from substitute products or services—can help organizations assess their current competitive position as well as identify any external factors that may impact their long term success (Thompson et al., 2020).
For example, if an organization operates in the cell phone industry they would want to analyze the rivalry among existing firms and threats from emerging companies. This can be done through collecting data on market share comparisons, pricing strategies and innovation levels (Gomez-Herrero et al., 2016). Additionally, they should also consider how supplier bargaining power could influence their decisions such as choosing between domestic or foreign vendors depending on cost savings opportunities.
Overall, understanding these various forces helps organizations make informed decisions when creating effective strategic plans tailored to their specific contexts.
