External Forces, Brand Strategy and Strategic Position Essay

External Forces, Brand Strategy and Strategic Position - Essay ExampleIn confront business environment, the competition had been likened to the contend zone where business rivals throw every manner of jibes to outdo another. It is unremarkably said that the person who arrives first in the battle zone awaits opponents with much ease, and the one who comes later into the battle zone is often weary. It is on this backdrop that the business operations of penman congregation often unload the food market that is dominated by the big boys and competes on the complacency of other companies to win their share of the market and build their brand. To go out for war metaphorically requires strategy, and strategy in simple connotative terminal figure implies tactics that have been inculcated to outdo the opponent. The firm faces a number of external challenges myriad with internal dynamics. In understanding the Scribe Groups external forces, the Porters Five Forces Model provides a suffic ient machine for the analysis. The model recognizes and evaluates five competitive forces that continually bombard and shape companies to allocate their industrys aim of competitiveness and hence understand the development of their strategies (Griffin, 2013). In the paragraphs that will ensue, this paper shall apply the Five-Forces Model for the Scribe Group. First, Barriers to Entry, which is high, the airline industry is synonymous with a high fixed cost required for business development. The change and administrative costs can be high within the industry, given the fact that Scribe Group enters into a market where there are already established names especially the advertising costs. The cover shows that the combined pretax profit realized from rail and airlines in 2013 and 2014 are 90 and 112 respectively against a grand turnover in the same period of 980 and 1101 respectively. The huge difference in turnover and profit is the solvent of even a comparable larger selling and administrative costs.