Business Strategy Essay Example | Topics and Well Written Essays - 1000 words - 4

Business Strategy - Essay Example Here it is essential to note that Bord Gais has a wide range of options to choose from in terms of the suppliers. Hence if one the arrangements with the suppliers do not work effectively, the company has a choice to change over the suppliers. Considering the threats of the new entrants, it is clear that the company has built a strong brand image for itself and has also been able to effectively retain its customers by staying in track with the latest market changes and requirements. Hence here the company faces Low to medium levels of threats. Although new entrants can enter into the markets, the company’s current customer base as well as the goodwill will permit Bord Gais to effectively fight against the newer entrants. The company however faces a High and Very High levels of threats in terms of the substitute products and the rivalry respectively in the current markets. The current trend in the markets where customers are opting for the ‘debt hopping’ option, the rivalry and substitute products prove to be a major level of threat for the company. However although the company does lose out on customers, they do gain customers who have hopped from other companies as well. The above figure provides a clear overview of the threats faced by the company and the intensity of the threats has also been displayed. The strategic group analysis helps the management to gain a better idea of the direct competition for the company. Here the main competitors for Bord Gais are: a) Mott MacDonald Group Limited, b) Papierfabrik Palm GmbH & Co. KG, c) Tembec Inc., d) Mainstream Renewable Power Ltd., and e) Phoenix Natural Gas. The figure below provides a clear view of the position of each of these companies in terms of each other and their strategies. It is essential to note that not all of the above mentioned companies act as direct competition to Bord Gais as this is determined more so by the size and the market position of the companies (Kotler, Keller,