Startegic Management

Strategic Management

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In the discussion, PEST analysis and Porters five forces analysis tools were selected for global strategy market. The Porters five forces analysis, would work best in global market strategy because it deals with external factors. The factors include power of suppliers and power of buyers. Threat of entry in the market and threat of substitutes are among other factors facing competitive rivalry. They are the major factors determine the way to be observed by the company. It means that the threat of entry and substitute can be used to analyze its global strategy (Bensoussan, and Fleisher, 2008). PEST market analysis is also a useful tool towards successful global strategy. It is due to the fact that it mainly focuses on the behavior of the market in terms of growing and declining.

Also, it caters for almost all external factors such as Political factors whereby it looks at the state of the market during political stability and instability. Economic factor is another area where it focuses on the state of the market when the country is economically stable and unstable. Social and technological factors are other factors where it considers a firm using technology in production and a firm that does not use it. According to Lakhani, Karim, Jill and Panetta, (2007) it is evident that PEST market analysis is among the preferred tool in the market due to its reliability. It is designed thoroughly to analyze the strength and weakness within the market segment and offers room for stakeholder to formulate appropriate remedies to curb and improve the situation.

Although some people may go for other tools, for example, SWOT analysis, they may not achieve the best output since the tools do not look at the external environment but focuses on internal factors. Therefore, it would be best to use the PEST and Porters five forces analysis for a...