Strategic Management Analysis Essay Example | Topics and Well Written Essays - 1250 words - 1

Strategic Management Analysis - Essay Example This kind of transformation has led to Better Place establishing a paradigm shift; whereby in the business model, sales are shifted from products to services. Mission and Vision The company’s mission is to reduce the social and environmental impacts in relying on petroleum by the transportation sector. The Better Place case highlights the automotive industry history in brief offers an overview of numerous automotive technologies such as hybrids and demonstrates consequences brought forth by its expansion (Romero, 2009: p.155-159). Industry Analysis The Better Place case highlights numerous aspects of the company, its shortcomings and advantages. It as well examines the rollout strategy of the company, which is an entrepreneurial that is trying to expand and grow globally at a quick pace. Its key challenges include a complex business model on the economy particularly on the wide upfront investments that are dispersed in various locations internationally, how infrastructure is c oordinated, how consumers can be convinced to switch to electric cars as well as ways of convincing automotive producers that EVs are a better option. Porter’s five Porter’s five looks at the five forces that act on Better Place Company and are the determinants of the company’s profitability. 1. Threats of new entrants This is a low threat in Better Place Company being in the automobile industry. ... 2. Bargaining power of buyers Buyers always bargain before buying cars, and so dealers gives out great deals to the buyers so as to move the industry. In this case, the buyers usually have a considerable bargaining power even if they purchase a single car at any given time which is a good factor that determines this force. 3. Threat of substitute products When buyers look at other products compared to those of Better Place, as well as competition, and are able to switch with ease, then the company can have a high threat of force. This is because the cost of switching can be high as one cannot sell a car for the sum paid for. In the differentiation of product, cars could be particularly similar in various ways but if choosing the amphibious cars, the threat of substitute products can be of low. 4. The bargaining power of suppliers This involves suppliers of electronics, parts, components and tires as well as the assembly workers. The auto unions are powerful in a tremendous way. On th e other hand, suppliers can be of small firms who often depend on carmakers and can have a single carmaker as a customer. Therefore, this force can be either low or high. 5. Competitive rivalry Better Place is a company that has a fierce competition in terms of price cut, product development and ad campaigns, which drives it to the profitability and innovation edge. This leads to low margins and a high pressure on rivals. However, if there is less pressure from rivals, the pressure on imports becomes high although there will be a difference in profitability because the business models will vary (Pickard, 2010.p.125). Sources and Capabilities SWOT Analysis of Better Place a. Strengths