Strategic Marketing Management-95418
In the topic, we will discuss at least 6 different tools/frameworks/models that are commonly used and have been proven effective in multiple business situations.
These include Porter’s five forces model, Generic model, GE Matrix, BCG matrix, Ansoff
matrix, Diffusion of innovation, different approach to strategies (i.e market driven vs driving
market) and so on.
Students are required to choose any two tools/frameworks/models and analyse them in terms
of their applications, usefulness, connection with other theories and the extent of model’s
ability to address a real marketing problem/issue.
The write-up comparing and contrasting the two models should be of 800 words.
Strategic Marketing Management
Table of Contents
Discussion of six different analysis framework and models that commonly used. 3
Comparison and Contrasting of Two Models (SWOT and Porter’s Five Forces) 6
SWOT analysis: 6
Strength. 6
Weaknesses. 6
Opportunities. 6
Threats. 6
Porter’s five forces. 7
Intensity of rivalry among competitor 7
Potential entrance. 7
Bargaining position of supplier 8
Bargaining position of buyer 8
Threats from Substitution product 8
Reference list 9
Introduction
In the real world, several marketing models that is available
for the business organizations for their respective strategic
planning. These models are in terms of Swot, Pestle, BCG, Ansoff,
etc. The given report will highlight the importance of the two
major models SWOT and Porters Five Forces while addressing a real
situation for the modern business firms.
Application of each model
SWOT analysis:Moutinho and Southern(2010) argued that SWOT analysis is the most important and effective tools that helps in understanding the current strengths and weakness of the company in business industry. SWOT analysis is an important tool to understand the four dimensions of a company or business. The four elements of this tool are strengths, weakness, opportunities and threats. All the given elements help in the internal analysis of the business firm. The micro business environment of the firm can be identified with this tool.
Porters Five Forces Model- The porter’s five forces model is a
very useful and important tool in the business(Tsiotsou and
Goldsmith, 2012). This tool is also very useful in the planning of
strategy of any business organization as this particular tool shows
the macro environment of that business organization. It helps in
external analysis and macro-environment of the business
organizations.
Usefulness of the models
SWOT analysis:
SWOT analysis is a very useful technique to identify the
strengths as well as the weaknesses of a business organization, in
addition, it includes the identification if the opportunities open
to the company and the threats or risks involved. Now, if a company
identifies the weaknesses it has, then it can improve its position
by removing or minimising the threats to strengthen its weaknesses.
Now, a company can improve its situations by taking into account
what opportunities open to it(Tesar and Kuada, 2013). This can be
shown clearly by a tabular representation.
Strength
Advantages the company has
The way by which the company can better perform
Efficient use if the lowest cost resources
Show people the strengths of the company
USP or Unique Selling Performance of the company
Risks involved in the business
Factors that lose in sales
People seeing the weaknesses
Weaknesses
Opportunities
Ability to spot the opportunities
Interesting trends
Changes in the government policies in favour of the company
Changes in the social patterns, consumers’ choices in favour of the
company
Technology up gradation
Obstacles faced by the company
Strategies of the competitors
Any changed position threatening the company
Problems regarding debt or cash-flow
Weaknesses of the business
Threats
The strength and the weaknesses are the internal advantages and problems within a business organisation.
Porter’s five forces
Intensity of rivalry among competitor
The macro environment of a business is constituted with several
rivals or competitors. Now, the number as well as the strength or
ability of the competitors is very important for a particular
company(Zimmerman and Blythe, 2013). The competitive environment of
a company is very important as the buyers as well as the sellers
can move towards the other competitors of a particular company if
they do not get good service from the company.
Potential entrance
Potential entrance is also a very important part of the
company’s marketplace. If there is a higher rate of entry in the
market, then the position of a company will be affected adversely
as it will increase the competition in the marketplace. Now, mainly
in case of small-scale industries, the cost of entry is very low,
so there is a high rate if entry in the market. In the small-scale
industries, the technology costs are low. On the other hand, in the
cost of opening a business is very high; the technology cost is
also very high, so, in the case of the large-scale industry, the
rate of entry is low.More the competitiveness worse will be the
position of a company.If there is a barrier to entry, then the
business organization can take the advantage(Moutinho and Southern,
2010).
Bargaining position of supplier
The supplier of the inputs has a great power to influence the
price level. Especially the owner of unique or rare inputs is very
powerful. They supply the unique products or inputs in their own
terms. As they have the monopoly power, so they can effectively
influence the prices(Lancaster and Massingham, 2010).
Bargaining position of buyer
The bargaining power of the buyers of a particular company is
important as if the bargaining power is very high, then the buyers
will be able to lower the price level as they would threat the
company by switching to another company(Kerin and Peterson, 2013).
If a company has weak buyers then it will be able to dictate then
in its own terms.
Threats from Substitution product
Another factor of the macroeconomic environment is the
availability of substitute goods in the market. If there are many
substitutes available in the market, then the business of a
particular good will isworsening(Grewal and Levy, 2010).
Connection of the models with different theories
The two models have a direct connection with different marketing theories that further helps a modern business organization to make several strategic plans. For example, Swot analysis has a correlation with Ansoff matrix or other marketing theories like segmentation targeting positioning of the firm. With the assist of internal assessment of the firm, the management can implement different forms of marketing strategy. In addition to this, Porters Five Forces Model is linked with external market strategies concerning entering into new markets, allocation of resources, etc(Mullins and Walker, 2010).
The major differences of the given two models are in terms of
base strategies and survival strategies and in terms of type of
macro and microeconomics.
Addressing a real marketing issue
A modern business organization can face several marketing issue
in case of expanding into new markets. One of the essential issues
that a business organization can face is in terms of selection of
appropriate market and meeting the behaviour of the customers. SWOT
analysis will help the business organization in addressing such
kind of issues by assessing the internal resources of the firm.
With the application of Porters Five Forces, the organization can
justify the external threats and analysis of all its
stakeholders(Tsiotsou and Goldsmith, 2012).
Conclusion
The report highlights the importance of different theories and models for the modern business firms. In addition to this, the usefulness and application of the models is also reflected through the given report.
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