External Forces, Brand Strategy and Strategic Position Essay

External Forces, Brand Strategy and Strategic Position - Essay ExampleIn present business environment, the competition had been likened to the battle zone where business rivals throw every manner of jibes to outdo another. It is normally 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 frequently weary. It is on this backdrop that the business operations of Scribe Group often enter the 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 fight metaphorically requires strategy, and strategy in simple connotative term implies tactics that have been inculcated to outdo the opponent. The firm faces a number of external challenges myriad with ingrained dynamics. In understanding the Scribe Groups external forces, the Porters Five Forces computer simulation provides a sufficient mechani sm for the analysis. The model recognizes and evaluates five competitive forces that continually bombard and shape companies to allocate their industrys level 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 Selling 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 denote costs. The report shows that the combined pretax profit realized from rail and airlines in 2013 and 2014 are 90 and 112 respectively against a huge turnover in the same dot of 980 and 1101 respectively. The huge difference in turnover and profit is the result of even a comparable larger selling and administrative cost s.