Strategic Management Term Paper Example | Topics and Well Written Essays - 2000 words

Strategic Management - Term Paper ExampleThe strategic leadership squad will first look at economies of scale, the decline in per-unit product costs as the absolute volume of production per period increases (Keegan & Green, p.504). This determines entry barriers for disceptation and usually applies to cost, marketing and general business administration. The ability to differentiate product is in like manner part of assessing the threat of new entrants, based on the current train of brand loyalty that exists with competition. In reference to Tesco, the environment is already saturated with many large-scale competitors such as Wal-Mart and thus Tesco must consider its stigmatisation strategies and also whether or not competition will find success with their own differentiation strategies through marketing and promotion. Capital requirements for new entry is also assessed through basic revenue analysis and needs for working capital (inventories) as well as advertising costs, custome r credit, and information systems technologies. Assessing distribution methodologies and energy is also measured with this analytical tool when considering potential competitor barriers to entry and then measured against Tesco capacity opportunities.When considering supplier power, supermarkets like Tesco operate in an oligopoly, where at that place are few competition however businesses maintain the ability to exert control over market pricing and supplier bargaining power (investorwords.com, 2011). Thus, the basketball team Forces analysis tool shows that suppliers are made weak by their absolute reliance on grocery store successes related to consumer-based commodity products (Porter, 2011). However, as the cutting study has identified that traditionalist consumer diets are constantly changing in China, the Five Forces analysis tool has limitations as suppliers could regain power when Tesco is forced to practice localised distribution and purchasing strategies for unique prod ucts catered to Chinese lifestyle