In the topic, we will discuss at least 6 different tools/frameworks/models that are commonly
used and have been proven effective in multiple business situations.
These include Porter’s five forces model, Generic model, GE Matrix, BCG matrix, Ansoff
matrix, Diffusion of innovation, different approach to strategies (i.e market driven vs driving
market) and so on.
Students are required to choose any two tools/frameworks/models and analyse them in terms
of their applications, usefulness, connection with other theories and the extent of model’s
ability to address a real marketing problem/issue.
The write-up comparing and contrasting the two models should be of 800 words.
Strategic Marketing Management
Table of Contents
Discussion of six different analysis framework and models that commonly used. 3
Comparison and Contrasting of Two Models (SWOT and Porter’s Five Forces) 6
SWOT analysis: 6
Porter’s five forces. 7
Intensity of rivalry among competitor 7
Potential entrance. 7
Bargaining position of supplier 8
Bargaining position of buyer 8
Threats from Substitution product 8
Reference list 9
In the real world, several marketing models that is available for the business organizations for their respective strategic planning. These models are in terms of Swot, Pestle, BCG, Ansoff, etc. The given report will highlight the importance of the two major models SWOT and Porters Five Forces while addressing a real situation for the modern business firms.
Application of each model
SWOT analysis:Moutinho and Southern(2010) argued that SWOT analysis is the most important and effective tools that helps in understanding the current strengths and weakness of the company in business industry. SWOT analysis is an important tool to understand the four dimensions of a company or business. The four elements of this tool are strengths, weakness, opportunities and threats. All the given elements help in the internal analysis of the business firm. The micro business environment of the firm can be identified with this tool.
Porters Five Forces Model- The porter’s five forces model is a very useful and important tool in the business(Tsiotsou and Goldsmith, 2012). This tool is also very useful in the planning of strategy of any business organization as this particular tool shows the macro environment of that business organization. It helps in external analysis and macro-environment of the business organizations.
Usefulness of the models
SWOT analysis is a very useful technique to identify the strengths as well as the weaknesses of a business organization, in addition, it includes the identification if the opportunities open to the company and the threats or risks involved. Now, if a company identifies the weaknesses it has, then it can improve its position by removing or minimising the threats to strengthen its weaknesses. Now, a company can improve its situations by taking into account what opportunities open to it(Tesar and Kuada, 2013). This can be shown clearly by a tabular representation.
The strength and the weaknesses are the internal advantages and problems within a business organisation.
Porter’s five forces
Intensity of rivalry among competitor
The macro environment of a business is constituted with several rivals or competitors. Now, the number as well as the strength or ability of the competitors is very important for a particular company(Zimmerman and Blythe, 2013). The competitive environment of a company is very important as the buyers as well as the sellers can move towards the other competitors of a particular company if they do not get good service from the company.
Potential entrance is also a very important part of the company’s marketplace. If there is a higher rate of entry in the market, then the position of a company will be affected adversely as it will increase the competition in the marketplace. Now, mainly in case of small-scale industries, the cost of entry is very low, so there is a high rate if entry in the market. In the small-scale industries, the technology costs are low. On the other hand, in the large-scale industries, the cost of opening a business is very high; the technology cost is also very high, so, in the case of the large-scale industry, the rate of entry is low.More the competitiveness worse will be the position of a company.If there is a barrier to entry, then the business organization can take the advantage(Moutinho and Southern, 2010).
Bargaining position of supplier
The supplier of the inputs has a great power to influence the price level. Especially the owner of unique or rare inputs is very powerful. They supply the unique products or inputs in their own terms. As they have the monopoly power, so they can effectively influence the prices(Lancaster and Massingham, 2010).
Bargaining position of buyer
The bargaining power of the buyers of a particular company is important as if the bargaining power is very high, then the buyers will be able to lower the price level as they would threat the company by switching to another company(Kerin and Peterson, 2013). If a company has weak buyers then it will be able to dictate then in its own terms.
Threats from Substitution product
Another factor of the macroeconomic environment is the availability of substitute goods in the market. If there are many substitutes available in the market, then the business of a particular good will isworsening(Grewal and Levy, 2010).
Connection of the models with different theories
The two models have a direct connection with different marketing theories that further helps a modern business organization to make several strategic plans. For example, Swot analysis has a correlation with Ansoff matrix or other marketing theories like segmentation targeting positioning of the firm. With the assist of internal assessment of the firm, the management can implement different forms of marketing strategy. In addition to this, Porters Five Forces Model is linked with external market strategies concerning entering into new markets, allocation of resources, etc(Mullins and Walker, 2010).
The major differences of the given two models are in terms of base strategies and survival strategies and in terms of type of macro and microeconomics.
Addressing a real marketing issue
A modern business organization can face several marketing issue in case of expanding into new markets. One of the essential issues that a business organization can face is in terms of selection of appropriate market and meeting the behaviour of the customers. SWOT analysis will help the business organization in addressing such kind of issues by assessing the internal resources of the firm. With the application of Porters Five Forces, the organization can justify the external threats and analysis of all its stakeholders(Tsiotsou and Goldsmith, 2012).
The report highlights the importance of different theories and models for the modern business firms. In addition to this, the usefulness and application of the models is also reflected through the given report.
Grewal, D. and Levy, M. (2010). Marketing. Boston: McGraw-Hill Irwin.
Kerin, R. and Peterson, R. (2013). Strategic marketing problems. Boston: Pearson.
Lancaster, G. and Massingham, L. (2010). Essentials of marketing management. New York: Routledge.
Mooradian, T., Matzler, K. and Ring, L. (2012). Strategic marketing. Boston, MA: Pearson Prentice Hall.
Moutinho, L. and Southern, G. (2010). Strategic marketing management. Hampshire, U.K.: Cengage Learning EMEA.
Mullins, J. and Walker, O. (2010). Marketing management. Boston: McGraw-Hill Irwin.
Mullins, J. and Walker, O. (2013). Marketing management. New York: McGraw-Hill.
Tesar, G. and Kuada, J. (2013). Marketing management and strategy. Abingdon, Oxon: Routledge.
Tsiotsou, R. and Goldsmith, R. (2012). Strategic marketing in tourism services. Bingley: Emerald.
Zimmerman, A. and Blythe, J. (2013). Business to business marketing management. New York, NY: Routledge.