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Factors Shaping The Business Strategy Case Study Solution


It is clear that marketing is widely changing and evolving with increased marketing approaches being used in organizations and commercial companies. In regard to this, many marketing theories have been Factors Shaping The Business Strategy Case Study Solutiondeveloped and accepted universally in the marketing world. This paper is aimed towards exploring the different factors that shape the strategy of different business such as the Sonance compressed, Frito lay and the Coleman art museum through use of different business tools such as the PESTLE analysis, SWOT analysis, Porter’s 5 Forces, the PLC model, 4 P’s of marketing, consumer buying behavior, the company’s competitive advantage, generic business strategy used, and core competencies (Gummesson, 2002). Basically, Sonance deals with electronics. Frito lay deals with first moving products such as potato chips and snacks while the

Coleman art is a museum that is highly affected by the business tools. In 2004 Coleman Art Museum made a significantly huge loss calling for a serious meeting between the directors of the museum Ashley and Donald Smith to discuss what they could do in order to reverse the financial situation that was affecting them. They used different theories including the porters5 in making the amendments. At first, they had to reduce the number of personnel.

In 1990s the best customer to Frito-Lay Supermarket adopted a new strategy which greatly affected the market operations of the business in accordance to Gambeson,  (2002).

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Porter’s 5 forces are used to determine the profit gain of the market in relation to the involved parties that is from the customers to the competitors (Porter, 1986).  According to McGokdrick, 2002, Sonance industry is greatly oversaturated and thus spoiling the consumer choice of the products. Therefore, this has resulted to being a greater threat in the Sonance industry. Lastly is the threat of substitute. The threat of substitute can be explained in terms of the increase in number of individuals who are using electronic gadgets such as laptop to watch different programmes which could otherwise be watched by use of the traditional TV (Lee, 1997).

PESTLE analysis is used in examining a business environment and highlighting the factors that influence the chosen business. It is an acronym with the letters representing “political, economic, social, technological, legal and environmental” respectively. Under political, the customers taxation and the corporate tax level are the major aspects aspect that highly influences different corporations. Moreover, another political aspect is seen in the imposing of trade barriers and tariffs. This protects the local producers and employment by improving the number of products that are shipped outside the market environment. Next is economical where the economic stability and growth of a certain region has significant impact on the business’ profits. For instance, economic stability of a region yields to high living standards which in return results to high rates of employment. Social- demographic variables affects the focus of a market, the product and service which are offered. Analysis of the cultural trends are therefore required in order to ensure a given market maximizes fully in its profits. Technological social media is an example of a technological factor that creates awareness in order to reach markets target. It moreover allows organizations to actively interact with their customers thus building the organizations reputations via the feedbacks and reviews from the customers. (Kaplan, 2010). Individuals are able to gain access to webpages which are designed specifically for comparing the specs in technology and contrast this with the price of the same product from a different supplier. Legal- most of the electronics companies such as those which have their product diversified are in a stiff competition in the market. Lastly under the PESTLE analysis is environmental. Most of the market operations are compelled by international and national standards so as to enable them perform their duties in a way that limits them from being affected by the negative environmental impacts (Gummesson, 2002).

The 4Ps is basically known as the marketing mix. The first P stands for Product. The different products that are offered in the market place provides a conducive competition environment for the consumers in the market surroundings. The products that are offered are suitable in large to the many available customers thus making customers interact with different products in order to select those of their choice. It is the quality of a product that best makes the customers get interested in the given product.  Pricing is the next P and it is a strategy which is dependent to certain different factors. Customers are clearly aware of the money value and thus a factor that makes them venture in sophisticated market environments. Therefore, the clients are prepared and planned to pay the premium prices only when they are comfortable with their aimed goal of obtaining products which are of high quality. Placement is the third P and through a serious research of the market, successful business place their products in the best sellers. This enables the products to be meet from well-known sellers thus easy movement of the products. Lastly is the Promotion most successful business uses promotion tactics as a way of maintaining its competitive edge thus defeating the other industry leaders. Promotion are basically designed in order to get customers attracted to the product (McGoldrick, 2002)

A comprehensive competitive position analysis applying the SWOT analysis, generic business strategy, the company competitive advantage and core competencies.

The SWOT analysis refers to a framework which is used in defining the external and internal factors of a business operations. The unique factor about SWOT is that it requires the delimitation of different factors which can either be positive or negative. It best describes the strengths, the weaknesses, opportunities and the major threats that can affect a competitive market. When a market research is conducted thoroughly, the SWOT analysis will be able to balance the weaknesses and strengths thus leading to a better market performance (Jaimovich, 2008).

Generic business strategy. This strategy was developed by porter. It is divided into three basic parts that is Differentiational, Focus and Cost strategy. This strategy highly determines the business attractiveness of a market. The cost focus involves a firm settling up in money saving thus becoming the less product producer in the market. Differentiational focus aims at enabling a business perform differently from the expected way. Moreover, it is important to note that differentiation highly leads to greater profits. The focus strategy aims at a particular niche ignoring the others (Porter, 1986).

The company’s competitive advantage of a business is gained as a result of providing the customers with values which are much greater. This can either be as a result of lowering the products price or most probably through providing better benefits in the products. Most businesses in the market are aimed for a competitive advantage in order to stand out in the market. It therefore important for the businesses to identify their targets with a well-defined goal which thy have to accomplish at a specific time. Through this strategy, the businesses are able to provide services which are of high quality. Moreover, this strategy enables a business stand out to be the best (McGoldrick, 2002).


Although the product specifications of consumers in the market remain an important factor in decision-making, marketing strategies have a very significant impact on the customers perception. This paper has clearly shown how the surrounding environment influences a company’s marketing strategy. Despite competition in the market being stiff, the ethical behavior portrayed by a successful business helps most businesses in the market increase the annual revenues. This is possible through the launch of the products which heavily attracts customers.

  • Curtis, G., & Cobham, D. (2008). Business information systems: Analysis, design and practice.Harlow: Pearson Education.
  • Gummesson, E. (2002). Relationship marketing in the new economy. Journal of Relationship Marketing, 1(1), 37-57.
  • Jaimovich, N., & Siu, H. E. (2008). The young, the old, and the restless: Demographics and business cycle volatility. Stanford: National Bureau of Economic Research.
  • Kaplan, A. M., & Haenlein, M. (2010). Users of the world, unite! The challenges and opportunities of Social Media. Business horizons, 59-68.
  • Lee, J.-W., & Swagel, P. (1997). Trade barriers and trade flows across countries and industries. Review of Economics and Statistics, 79(3), 371-382.
  • McGoldrick, P. J. (2002). Retail marketing (2nd ed.). London: McGraw-Hill.
  • Porter, M. E. (1986). Competition in Global Industries. Boston: Harvard Business School Press.


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