1.1 Porter’s five force analysis According to Porters analysis, there are five basic factors affecting the operations of an organisation in any given market. These factors are bargaining power of suppliers, bargaining power of buyers/consumers, threat of competitive rivalry, threat of substitutes and threat of new entrants. 1.2 Bargaining power of suppliers The bargaining power of L & T suppliers is high. Most L & T suppliers are organised making the company to be one of the largest engineering companies in Malaysia (and one of the top five private sector companies). Its diversity in engineering sector gives it a strategic position and bargaining power. Moreover, L & T faces reduction of prices by its competitors. For instance, increase in …show more content…
Punj and Lloyd, and RITES. According to Hoovers (2015), initial capital investment, economies of scale, market competition, regulations and consumer behaviour greatly influence the rate of new players entering an industry. L & T has well established market due to its long history since 1938 and experience in the sector. 2.0 Swot Analysis of L & T The SWOT analysis is used to gauge a company’s strengths and weaknesses. It also outlines opportunities for tapping and presents possible threats that could affect a company’s operations. 2.1 …show more content…
It is among the largest engineering companies in Malaysia with a growth rate of over 20% for four consecutive years and is among the best managed companies in Asia. It is among the most transparent and therefore leads on the issue of corporate governance. It enjoys incredible growth in sales shareholder and has a base of nearly 1 million. L & T is the core of a group of companies involved in building complexes, worksheets, offices and service outlets at different locations all over Malaysia and abroad. L & T has an incredible reputation for capabilities for executing engineering related projects. This has been enhanced by it long business history which date back in 1938 to present. It provides real and logical synergy in terms of executing turnkey projects for construction, engineering, supplying machinery and suppliers credit. Further, by the use of Total Quality Management (TQM) principles e.g. customer focused, reducing costs and wastage, and adding value at all stages for maximising customer satisfaction and emphasis on 'customer delight '. The company therefore delivers more value than expected by customer. It has ability to synthesise, incorporate and complement its diverse world-class engineering, manufacturing, procurement, construction and fabrication skills around turnkey projects and people. L & T has a world class vendor base and quality technological alliances, excellent IT
It is important to evaluate the ins and outs of a company to provide valuable information on the standings and future standings of the company. It also provides insight to develop strategies for long-term growth and shows potential threats that may hinder the bottom line. Strengths The strength portion of the SWOT analysis shows the internal environment, which are the controllable components of the firm that give a competitive advantage. This allows them to purchase high volume items for a lower cost.
This organization belongs to the oligopoly market structure. The oligopoly market structure involves a few sellers of a standardized or differentiated product, a homogenous oligopoly or a differentiated oligopoly (McConnell, 2004, p. 467). In an oligopolistic market each firm is affected by the decisions of the other firms in the industry in determining their price and output (McConnell, 2005, P.413). Another factor of an oligopolistic market is the conditions of entry. In an oligopoly, there are significant barriers to entry into the market. These barriers exist because in these industries, three or four firms may have sufficient sales to achieve economies of scale, making the smaller firms would not be able to survive against the larger companies that control the industry (McConnell, 2005, p.
Libra has many competitors; these competitors are also in the same development stage and use the same pricing strategy. Libras main competitors are
The SWOT analysis involves four steps. They are strength, weakness, opportunity, and threats. This will assist you to ident...
SWOT analysis is a necessary tool for business that allows corporations to analyze where their strengths, weaknesses, opportunities and threats lie. The SWOT tool contains paramount information about the industry and helps the executives of the business make decisions that are necessary for the business’s survival and success.
A SWOT analysis is simple exercise that could be implemented on multiple subjects including an individual or a whole corporation. The SWOT analysis is an operational tool for managing change, defining strategic direction and setting realistic goals and objectives according to Simoneaux and Stroud (2011). Discovering new opportunities and manage and eliminate threats that are present in the company and the surrounding market. SWOT is a valuable technique that leads to a better understanding of the strengths, weaknesses, opportunities and treats both internally and externally. The strengths and weakness are to be considered internal factors and opportunities and threats to be e...
A SWOT analysis is an examination of an organization’s internal strengths and weaknesses, its opportunities for growth and improvement, and the threats the external environment presents to its survival (Harrison, 2010). Generally, the information gathered for the analysis is organized into matrix form, howe...
A SWOT analysis is a measure tool to summarize a company’s internal and external aspects. By measuring the company’s strengths, weaknesses, opportunities and threats and looking for improving solutions by using the strengths and opportunities to improve on the weaknesses and take the necessary actions concerning any threats a company can survive in today’s world market.
As illustrated by Hill, Jones, & Schilling (2014), to assist organizations in choosing future strategies, they can perform a SWOT analysis to determine its strengths; weaknesses, opportunities and threats (p. 17). Hill, Jones, & Schilling (2014) not that, in order to determine future strategies, it is important an organization perform this analysis to “build on and protect company strengths, and eradicate
Bargaining Power of Suppliers – High – two key supplies needed are planes and fuel. Fuel prices are negotiable on quantity. There are only two airplane suppliers, Airbus and Boeing.
What is a SWOT analysis? This concept involves assisting businesses to identify their strengths, weaknesses, opportunities and threats. It is often used to analyze an organization and its environment. Businesses find the analysis useful in assisting them to improve their business, establish goals and objectives.
. SWOT analysis is used for companies to analyze their strengths, weaknesses, opportunities, and threats. This information can give some insight to improve internal weak areas and build on strong ones. External opportunities and threats will also be analyzed and potential strategic decisions can be made according to these results. This paper will produce a comprehensive SWOT analysis for our organization which will then be implemented in the overall strategic plan.
This reflective essay will critically review my personal and professional skills that I am less confident in whilst in practise, which is essential for communication and developing effective relationships with others in an organization and even for personal development. The skills identified for improvement was highlighted in a skills audit for communication and effective relationships. A SWOT analysis was carried out to focus on the skills recognised, where finally an action plan was made to address how to improve the skills, what the challenges would be to develop them and how it is beneficial. The skills audit, SWOT analysis and the action plan are included as an appendices. It will also apply communication theories to
The SWOT analysis is a useful tool for identifying our personal strengths, weaknesses, opportunities, and threats to our plans and goals. According to a “Fuel My Motivation” article (2010), this analysis considers internal influences that can positively or negatively affect our ability to achieve our goals. The internal factors are our strengths and weaknesses. Also considered are opportunities and threats, which are external influences that can have a positive or negative impact on the ability to achieve our goals. I will share how the self-assessment instruments and self-exercises in this course have contributed to assessing and understanding my strengths and weaknesses. I will also discuss techniques I will use to leverage my strengths and understand my weaknesses. In addition, I will consider opportunities that I can take advantage of and the threats that can possibly impede my progress.
The type of firm we are going to investigate in this assignment is an oligopolistic firm. The essence of an oligopolistic market is that here are only a few sellers. As a result, the actions of any one seller in the market can have a large impact on the profits of all the other sellers. Oligopolistic firms are interdependent in a way that competitive firms are not. The company we chose to study is Petronas.