Porter's 5 Forces to Auto Industry Essay

2940 WordsSep 2, 201312 Pages
STRATEGIC MANAGEMENT & BUSINESS POLICY PRATIK S SABNIS 24 Indo German Training Center Strategy Preview In its simplest form a strategy is having an idea or a goal to get you from where you are to where you aspire to be in the future. Webster’s Merriam Dictionary defines strategy as: Strategy – a careful plan or method, a clever stratagem; the art of devising or employing plans or stratagems toward a goal Strategy is therefore, a goal, a plan or guideposts that tell you where you should be heading at different times of the journey. Consider strategic planning as a GPS guiding system, you feed in the destination from where you currently are, the computer does a few calculations with the satellites above the earth and then presents you with a options to reach your destination. The easiest path is the straight line path from point A to point B; however it may not be a feasible one for your organization as you desire a different result. So the computer has another alternative route to get you to the same destination, this route may be more practical for you at this point in time, so you decide to take the second option. The GPS system breaks the journey into several smaller components along the way and eventually guides you to your destination, each of these smaller checkpoints or outposts along the route to your destination let you know and keep you posted about how quickly and how accurately you are progressing in your journey to your destination. The same is true for strategy, a set of goals, outposts to let the organization know how far they have come since they started and to keep track of their progress to the organizations eventual goal in the market place. The following pages will highlight the automobile industry in India and will also assess Michael E. Porter’s Five Forces Strategic Competitive model for the industry.

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