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STRATEGIC MANAGEMENT
ENVIRONMENTAL ANALYSIS
ODEL
GROUP MEMBERS
SATHEESHA RAJALINGAM FAZLAN MARIKKAR ADHUHAM RASHEED KARTHIGA THURAIRAJAH PRASAD FERNANDO SAAD HUSSAIN ZAIN NOORDEEN
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Table of Contents
Executive summary .................................................................................................................................. i 1 2 Introduction ..................................................................................................................................... 1 Potters Five Forces Analysis for ODEL ......................................................................................... 1 2.1 3 ODELs five forces analysis ................................................................................................... 2
SWOT analysis of ODEL ............................................................................................................... 4 3.1 3.2 Strengths ................................................................................................................................. 4 Weaknesses ............................................................................................................................. 5
4 5
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Porters five forces is a strategic model which was developed by Michael Porter to determine the state of competiveness in a market (Tony, 2006). The model is a flexible tool which could be used to analyze a firm opportunities and overall competitive advantage no matter which industry or market the firm operates. The model is comprised in five forces which are Revelry New entrants End users/Buyers Suppliers Substitutes
A graphical representation of potters five forces model are shown on next page in figure 1.
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Threat of rivalry
Suppliers
Buyers
Threat of substitution
Substitution
Bargaining power
2.1
ODELs five forces analysis Five Forces High Impact Medium Low -The power of ODEL in the market place and the large quantities it purchases from the suppliers and the suppliers are not ready to lose the opportunity to supply to such a powerful dealer. -There are over 1000 suppliers and 200 plus factories locally and globally supply Odel with the incredible range of products which give Odel the leverage and Options (Odel, 2011) -Odel has their own manufacturing facilities Description
Bargaining power of
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-The
fashion
industry
is
expected
to
experience a growth in the Sri Lankan economy, thanks to the influence of social media and the end of civil war. Hence this growth might attract international companies and brands to such Marks and Spencer to enter the market.
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3
3.1
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Odel (2011), Cooperate Odel - About us[ONLINE] Available http://www.odel.lk/corporateodel/about-us [Accessed25th May 2013] Tony.L(2006). Michael Porters Five Forces Model[ONLINE] Available http://www.cbe.csueastbay.edu/~alima/courses/3551/MurderCleaners/FiveForcesPorter.pdf [Accessed 25th May 2013]
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