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3.4 Firm strategy, Structure and Rivalry
Firm strategy, structure and rivalry refer to the conditions in a country which indicate how industries are established. It is not only considering their organisation, structure and management systems, but also expects the nature of domestic competitiveness (Campbell and Edgar et al., 2011). All those factors between companies play a very important role which will provide beneficial and drawback for particular industries. As follow, the current strategy and structure of wine industry in Australia play an important role. The company pays close attention on the structure and strategy so as to check if the environment is suitable for the production to be expansion, also could it be the winner in the contribution of international achievement. In addition, as described in Porters framework positive domestic rivalry and the search for competitive advantage within a nation can lead particular industries achieving such advantage on a more global scale (Dicken, 2011). For the most part the rivalry in Australia is they have many famous wine production areas which provide great climate and environment for high quality grapes to growth (Gemma, 2010). Australia own is nature place of top quality wine to be produced. Those factors highly improve their competitive advantage within global market. Australia wool industry has the competitive advantage by through their successful industry leadership, planning and innovation. One of the key strategies and rivalry characters has been to listen to the consumer’s desires and strive through application of innovation before production. Equally important, however, they have a good leadership which motivate factory to the edge of technical ability, knowledge, resear...
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Paton, C. 2014. LNG Export Surge Boosting Prices for Australian Buyers: Energy. [online] Available at: http://www.bloomberg.com/news/2014-01-10/lng-export-surge-boosting-prices-for-australian-buyers-energy.html
Trewin, D. T. 2006. A comprehensive source of information about Australia. [e-book] Australia: ABC. http://homepage.ntu.edu.tw/~lbh/ref/Statandyearbook/YearBook/34.pdf
Wisner, J. D., Tan, K., Leong, G. K. and Wisner, J. D. 2009. Principles of supply chain management. [Australia [etc.]: South-Western.
Yetton, P., Craig, J. C. and Davis, J. 1992. A Critique of Porter’s Theory of National Competition. [e-book] Australian journal of management. http://eds.b.ebscohost.com.ezproxy.liv.ac.uk/eds/pdfviewer/pdfviewer?sid=1f97a217-4010-4103-a515-1864087919cc%40sessionmgr114&vid=1&hid=115
W.C. Benton, Jr., 3rd Edition, “Purchasing and Supply Chain Management.” (2010). Text. 2.
MacDermott, D. (1993). As we see you. In D. Grant & G. Seal (Eds.), Australia in the world (pp. 86-91). Perth: Black Swan Press
The distribution of wealth in Australia by Frank Stilwell & David Primrose (2007) http://evatt.labor.net.au/publications/papers/226.html accessed on May 17, 2011
1. The industry structure in the Old World is significantly different than the New World. First, the Old World has a very low concentration ratio, while the diversity of competitors is high. Along with other factors the Old Worlds industry rivalry is very high. In contrast the industry rivalry is relatively low because of the extremely high concentration ratio and the low diversity of competitors. The New World is made up of large publicly held firms in comparison to the small private owned vineyards in the Old World that historically have produced for their own consumption. Another difference is between the suppliers in both industries. The suppliers in the Old World are one in the same with the producers because most wine producers are able to purchase their own land for grape production because of the low cost of land and low cost of labor. The producers in the New World either have to spend large sums to purchase land and hire out expensive harvesters or they have outsourced their grapes from other farms. Most producers in the New World tend to rely on outsourcing their grapes giving their suppliers a lot of power because of the necessity of grapes for the end product. The threat of entry in the Old World is relatively high in comparison to extremely high capital requirements in the New world making threat of entry low. Finally, the main difference between the industries of the New World and the Old World is the wine producers mandated distribution system. The Old World has few restraints and tends to distribute their products to off premise retailers throughout Europe and even abroad. In comparison, many producers in the New World must distribute first to wholesalers who are also...
"Australia." Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. N.p., n.d. Web. 2 Dec. 2013. .
A “problem” is identified in the beginning of the case, indicating that there is titanic shift in the global wine industry. The drastic change inevitably caused both the New World and the Old World to clash for market share and profitable stake in the $230 billion global industry. Amidst the battle, the New World gained the competitive advantage, and challenged the Old World’s traditional ways and former dominance.
By using this structured analysis, firms can more easily evaluate the attractiveness of an industry and gain a complete overview of all relevant competitive factors that have to be considered in the process of establishment. It helps to better understand the present market structure and to evaluate as a consequence of that external threats and opportunities. Unfortunately, the analysis established by Porter is not a guarantee for success and above that, it is often accused for limitations, lack of considerations and inoperative outcomes. The non-observance of a collaborative economic behaviour and of governmental influence, the inflexibility of the model and furthermore lack of application to rapidly changing market conditions are major limitations that have to be considered.
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
Valdani, E., and Arbore, A., 2013. Competitive Strategies: Managing the Present, Imagining the Future. Palgrave Macmillan.
Porter, M. E., 1999. The Five Forces that Shape Competitive Strategy. Harvard business review, p. 80.
In The Competitive Advantage of Nations, which was published in 1990, Michael Porter – who has dedicated most of his career to studying businesses and how they can develop a competitive advantage (Competitive Strategy, 1985) –
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
Organizations with competitive rivalry aim to gain advantages over their competitors and often use competitive behavior which consists of competitive actions and responses (Hitt, 2013). The results are competitive dynamics which consist of competitive acts and responses by competing firms in the industry (Hitt, 2013). One of the main benefits of being competitive is that it often results in economic growth (Martin, 2014). It is also believed that competitive rivalry has an influence over a firm’s performance as well (GIBB, 2010). Porsche consistently makes effort to improve their quality and to work towards providing a wider variety of sports car options in the
‘Supply chain management integrates supply and demand management within and across companies. It encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, thir- party service providers, and customers’. (Web: Council for Supply Chain Management Pr...
The key performance drivers of Supply Chain Management (SCM) are - facility effectiveness, inventory effectiveness, transportation effectiveness, information effectiveness, sourcing effectiveness, pricing effectiveness, delivery effectiveness, quality effectiveness and service effectiveness. These drivers include various performance markers that may be measured quantitatively by gathering information and applying them in SPSS. The works here may principally be quantitative with spellbinding measurable investigation. In the current world, practical supply chain management to help the triple primary concern, (nature, domain, and economy) is likewise included in the extent of supply chain performance drivers. This is relatively a quite new research region.