priority matrix to categories external environment factors analysis

User Generated

zbunwre

Business Finance

arab acadmy

Description

ZEZO is an Egyptian local retailer. It is the second retailer in Egypt

based on revenues in 2023. ?ZEZO follows a growth strategy using cost

leadership and mass market strategy. Its market segment is the

Egyptian middle class. The top managers want to expand their work to

the upper social class (Top-top/ ?Top-Middle/ ?Top-low). ?As a strategic

consultant, give the company a strategic path to this choice by:

1-Create an Issue Priority Matrix to categories the External

environment factors analysis.

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Explanation & Answer

Attached.

1

ZERO’s Business Implementation Strategy

Name

Institution

Date

2

Porter’s Five Forces

Threat of New Entrants

ZEZO ought to consider the level of ease with which new entrants can penetrate the
market segments that serve affluent socioeconomic strata. Higher barriers to entry, such
as considerable capital requirements, strong brand loyalty, and economies of scale, may
mitigate the threat of new competitors. Low entry barriers, on the other hand, might
facilitate the entry of new competitors into the market, thereby intensifying competition
and potentially undermining ZEZO's profitability and market leadership. In order to
determine the level of hazard that new competitors pose, the CEO can conduct a
comprehensive analysis of entry barriers and potential new entrants.

. Bargaining Power of Buyers

Assessing the purchasing power of consumers in the upper socioeconomic divisions is the
responsibility of the CEO. Although these clientele may possess a greater amount of
disposable income, their expectations regarding the overall purchasing experience,
customer service, and product quality may also be more stringent. ZEZO must be
cognizant of their requirements, inclinations, and the available alternatives. Additionally,
the CEO should evaluate the extent to which buyers can negotiate and demand discounts,
along with the resulting impact on product differentiation and brand perception.

Bargaining Power of Suppliers

3

ZEZO's capacity to provide top class consumers with high-quality goods and services is
largely dependent on its suppliers. The CEO needs to assess suppliers' negotiating power,
which includes that of producers, distributors, and service providers. Suppliers may put
pressure on ZEZO through terms, pricing, or product availability if they have a lot of
sway. Strong supplier relationships, a variety of sourcing strategies, and advantageous
contract negotiations can all assist reduce supplier power and guarantee a dependable
supply chain.

Threat of Substitutes

In assessing its product and service offerings, ZEZO needs...


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