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Porche Case Study

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Ong Shao Bin, Ida
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Ong Shao Bin, Ida
402225489
Strategic management in a global context
Porsche Case Study Assignment
Strategic management in a global context
Porsche Case Study Assignment

This essay aim to analyse and identify the importance of having strategy to align the business organizational mission and values with external and fast-paced circumstances so that it can use its competitive approach to react in a timely manner and cater to the circumstances. (Johnson et al, 2008) By using the global automotive industry as a reference, it demonstrate how strategy management is being used to help the business to gain competitive advantage via usage of resources and capabilities.
Under the preview of strategic management, managers will have the deep understanding of factors driving the competitions in their line of business to find out whether the business has the potential to bring profits or cause loss in the revenue. By using Porter’s Five Forces analysis, it help the managers to know the level of competitiveness and which forces are contributing to the competitiveness. The five forces are the threat of new competitors, threat of new products’ introduced by rival companies, the power of purchasing by customers, the supplies power and the fierceness of rivals in the industry. (Johnson et al, 2008)
For the new competitors to enter global automotive industry, the global automotive industry require extensive capital to develop new products and innovate the current car model by using the latest emerging technology. The customer bases for the high end sport cars are small as the up keep for the sport cars can be very extensive due to great special care and service on regular basis. (Brandon et al, 2013) New competitors might go bankrupt if they do not have extensive capital to do Research and Development of new products and labour costs will be…...

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