Prepared By Group Five:
Marketing & Sales- Michael Biton
Production- Abdulla Al Mamun
R&D – Agnieszka Somszor
Finance & Investments- Lena Blayo
VISION: To be the price leader in high-tech industry and to increase the value of our company.
MISSION STATEMENT: To deliver innovative customer solutions and components that exceeds customer expectations and constantly creates value for our stakeholders.
STRATEGIC SUMMERY: Since all companies started with the same initial situation we have decided to make one SWOT analysis as the part of a company's strategic planning process, to determine where we stands on four ...view middle of the document...
The problem of competition is seen in every industry, but in ours it is extremely concentrated so price wars can occur. In addiction, economic condition of countries around the world is not satisfactory and is affecting the purchasing power and priorities of customers.
SWOT analysis gave us the basis in determining our strategy, but we thought that another analysis is needed in order to have a broad view about competition. That is why we have used Five Porter’s forces analysis. With this clear division of power, we could take a fair advantage of strength, improve all disadvantages, and avoid taking wrong steps. Results of our analysis are presented in Attachment number two. High-tech industry has a lot of strong and durable entry barriers so it is not so easy to create a new company. Firstly it requires a great deal of money, constant improvement of products as well as innovation and new technology. There are much more than only a few economies of scale in place and there is high protection for key technologies. This makes new competitor’s ability of entering this market more difficult and cannot weaken our position so fast. Analyzing all barriers we come to a conclusion that the threat of new entrants in our case in low. When it comes to the substitutes we think that this threat is also low. It is affected by the ability of our customers to find a different way of doing what you do. In case of our company people are not able to substitute our product or services by doing the process manually or by outsourcing it. As a result substitution is not easy and viable so it is not weakening our power. When we discussed competitive rivalry we thought about the number and capability of our competitors. We have five strong competitors and they offer more less equally attractive products and services. That is why we have little power in the situation because suppliers and buyers switch to our competitors when they don't obtain a good deal from us. Our company develops, designs and manufactures all of it products, so if suppliers to drive up prices it would affect out company negatively, but we could switch to another supplier of raw materials, there are plenty on the market. Moreover, the numbers of suppliers of each component, supplier´s control over our company, switching costs are low. We have a lot of supplier choices and we profit from this because the more we need suppliers' help, the more powerful our suppliers are. Thus, the bargaining power of suppliers is moderately low. The last competitive force in five forces analysis is bargaining power of customers. Basically, there are no costs of switching from our products and services to those of someone else. In addition, the number of buyers and importance of each individual buyer to our business is high. Moreover, in a face of crisis buyers are price sensitive but at the same time they demand high quality. Thus, it might be difficult to satisfy their needs at the price level that they expect.