Monday, May 25, 2020

Critical Appraisal of Business Planning Process Free Essay Example, 1500 words

It is evidently clear from the discussion that Michael Porter identifies five competitive forces that impact business success, including a threat of new entrants, the availability of substitute products, supplier and buyer power in the market, and concerns over what types of competitive strategies are being developed by other businesses operating in the same market. It is necessary to scan the external environment in order to understand what socio-economic and socio-cultural trends are observable in key target markets in order to develop a service or product plan designed to properly fit these attitudes or financial predictors. The market analysis identifies all of the fundamental hindrances or advantages that are linked to strategic intention and competitive strategy, thus the planning process must include market research. Businesses that are heavily reliant on consumer revenues must understand what drives buyer behavior, and this is best performed through surveys, questionnaires o r focus groups. Consumers either favor or disapprove of a particular product or business concept based on how they view its value to fulfilling their consumption or lifestyle needs, this market analysis determines the internal steps required to build a market orientation for reputation and economic sustainability purposes. We will write a custom essay sample on Critical Appraisal of Business Planning Process or any topic specifically for you Only $17.96 $11.86/pageorder now In markets where there is heavy saturation of competitive forces that provide similar products or services, it is necessary to understand what elements of the marketing mix are driving their marketing strategies. For instance, analysis of the competitive environment might indicate that competitors are utilizing considerable capital resources toward advertising and promotion, but are not achieving the financial results expected by their own strategic plans. This gives the entrepreneurial business the template by which to develop a new strategy that focuses more on value provision, thus being able to reserve financial resources that might have been applied to a large-scale advertising and promotional scheme in an effort to gain consumer attention.

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