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What will be the expected profitability of the new products or services (Porter Five
Forces Analysis)
Finally which business to continue, where to invest further and from which to get
out (BCG Growth Share Analysis)
Strengths
- High customer loyalty & repeat purchase among existing customers – Dovernet
Performance old customers are still loyal to the firm even though it has limited
success with millennial. I believe that Dovernet Performance can make a transition
even by keeping these people on board.
Weakness
- Dovernet Performance business model can be easily replicated by competitors –
According to Robert L. Simons, Natalie Kindred , the business model of Dovernet
Performance can be easily replicated by players in the industry.
- Low profitability which can hamper new project investment – Even though
Dovernet Performance financial statement is stable, but going forward Dovernet
Performance 5-7% profitability can lead to shortage of funds to invest into new
projects.
Opportunities
Threats
- Age and life-cycle segmentation of Dovernet Performance shows that the company
still hasn’t able to penetrate the millennial market.
- Customers are moving toward mobile first environment which can hamper the
growth as Dovernet Performance still hasn’t got a comprehensive mobile strategy.
Once all the factors mentioned in the Dovernet case study are organized based on
SWOT analysis, just remove the non essential factors. This will help you in building a
weighted SWOT analysis which reflects the real importance of factors rather than just
tabulation of all the factors mentioned in the case.
What is PESTEL Analysis
Political Factors
- Political consensus among various parties regarding taxation rate and investment
policies. Over the years the country has progressively worked to lower the entry of
barrier and streamline the tax structure.
- Political and Legal Structure – The political system seems stable and there is
consistency in both economic policies and foreign policies.
Economic Factors
- Inflation rate is one of the key criteria to consider for Dovernet Performance before
entering into a new market.
Social Factors
- Demographic shifts in the economy are also a good social indicator for Dovernet
Performance to predict not only overall trend in market but also demand for
Dovernet Performance product among its core customer segments.
- Consumer buying behavior and consumer buying process – Dovernet Performance
should closely follow the dynamics of why and how the consumers are buying the
products both in existing categories and in segments that Dovernet Performance
wants to enter.
Technological Factors
Environmental Factors
Legal Factors
- Property rights are also an area of concern for Dovernet Performance as it needs to
make significant Assessing performance, Compensation, Competitive strategy,
Corporate governance, Decision making, Human resource management, IT,
Leadership, Motivating people, Organizational culture, Performance measurement
infrastructure investment just to enter new market.
- Intellectual property rights are one area where Dovernet Performance can face legal
threats in some of the markets it is operating in.
You can use Porter Five Forces to analyze the industry in which Dovernet
Performance operates in and what are the levers of profitability in those segments –
differentiation, Assessing performance, Compensation, Competitive strategy,
Corporate governance, Decision making, Human resource management, IT,
Leadership, Motivating people, Organizational culture, Performance measurement.
Michael Porter Five Forces of Strategy are –
Threat of substitutes
Porter Five Forces can help in answering following questions for writing case study
solution for Dovernet -
Are some segments more attractive than others? Why? Identify, analyze, and
evaluate the strategy of the Dovernet Performance featured in the Dovernet case
study.
What are the pros and Cons of each strategy? What impact Dovernet Performance
actions will have on industry and economy on whole?