Strategic business decisions for new business ventures. Michael Porters series of strategy tools and frameworks

Essay from the year 2018 in the subject Business economics - Business Management, Corporate Governance, grade: 80, University of Canberra (School of Management, Faculty of Business, Government & Law), course: Master of Business Administration, language: English, abstract: Porter¿s series of strategic tools and framework provide guiding principles to the businesses seeking sustainable competitive advantage within industry¿s multidimensional environment. Industry structure and its dynamics determine the power of competition which aids firms to secure their persuasive position. A strategy is not to trounce or eliminate rivals but to raise profit potential through value proposition hitting customer¿s sweet spot(s). Companies can gain superior performance through an innovative integration of efficient value chain and core competencies to outweigh external environment. For strategic leverage to be genuinely efficacious, it is also incumbent to recognise and evaluate firm¿s best fit and trade-offs. To counter the identified industry¿s forces, safeguard our customer¿s loyalty and to build relatively higher entry barrier for potential entrants, our recommended differentiation strategy will prevail. The plummeted switching cost attracts new customers but to lock them, our massage-spa business to offer unique rewards policy. In the war of profit attrition and exploiting myriad of new opportunities, we endorse continual scanning and abreast adaption corresponding to external environmental trends. We also suggest harmonising our traditional massage-spa business with its interdependent industries such as health-fitness sector and implementing the best value-creating procedures.