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

Strategic Management - Term Paper ExampleThe strategic leadership team bequeath first look at economies of scale, the decline in per-unit product costs as the absolute flashiness of production per period increases (Keegan & Green, p.504). This determines entry barriers for competition and usually applies to cost, marketing and general business administration. The ability to narrow product is also part of assessing the threat of new entrants, based on the current level of place loyalty that exists with competition. In reference to Tesco, the environment is already saturated with many large-scale rivals such as Wal-Mart and thus Tesco must consider its branding strategies and also whether or not competition will adjust success with their own differentiation strategies by means of marketing and promotion. Capital requirements for new entry is also assessed through basic revenue analysis and needs for working capital (inventories) as well as advertisement costs, customer credit, a nd information systems technologies. Assessing distribution methodologies and capacity 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 there are few competition however businesses maintain the ability to exert control over market set and supplier bargaining power (investorwords.com, 2011). Thus, the Five 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 case guide 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 utilize localised distribution and purchasing strategies for unique products catered to Chinese modus vivendi