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The document is a management assignment submitted by a student at Himachal Pradesh National Law University, focusing on competitive advantage and a microfinance proposal for a hairdressing shop in Shimla. It includes an acknowledgment section expressing gratitude to various individuals for their support, as well as a SWOT analysis of the hairdressing business and strategies for a newspaper facing competition from electronic editions. The assignment emphasizes the importance of understanding competitive dynamics and adapting business strategies accordingly.

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shikhar bhardwaj
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10 views7 pages

Common Assignment

The document is a management assignment submitted by a student at Himachal Pradesh National Law University, focusing on competitive advantage and a microfinance proposal for a hairdressing shop in Shimla. It includes an acknowledgment section expressing gratitude to various individuals for their support, as well as a SWOT analysis of the hairdressing business and strategies for a newspaper facing competition from electronic editions. The assignment emphasizes the importance of understanding competitive dynamics and adapting business strategies accordingly.

Uploaded by

shikhar bhardwaj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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HIMACHAL PRADESH NATIONAL

LAW UNIVERSITY

MANAGEMENT ASSIGNMENT
COMMON ASSIGNMENT

Submitted to- Submitted by-


Ms. Esha Sharma Roll No. 5

ACKNOWLEDGEMENT
The success and outcome of this project required a lot of guidance and
assistance from many people and I am extremely privileged to have got this all
along the completion of my project. All that I have done is only due to such
supervision and guidance and I would not forget to thank them.
Honourable vice chancellor Dr. S.C Raina, for his innumerable guidance and
support, I sight my thankful gratitude to him. Further, HPNLU staff and
faculties for providing such environment and milieu, so that such study and
researched could be successfully carried out by me. I thank all faculties of
HPNLU for providing such studious environment, which made this project
practically possible.
I present special gratitude to Ms. Esha Sharma Ma’am. To provide me with
such golden opportunity that I can study and research on the topic Michael
Porter’s 5 force model. The completion of this project was a journey filled
with knowledge and learning and I am really thankful to all people who were a
part of these journey.
At last I would like to thank my family and friends who were a constant pillar of
support and encouraged me, in this research work.

Teacher’s Sign Student’s Sign


1. “A firm can have competitive advantage and competitive
disadvantage at the same time”. How is it possible? Explain by
discussing the concept of competitive advantage.

When the profitability and profit growth of a firm is more than the average
profitability and profit growth in its industry it is said to have competitive
advantage. According to Michael Porter, strategy is about achieving competitive
advantage through being different delivering a unique value added to the
customers having a clear and exactable view of how to position yourself
uniquely in your industry.

While, Competitive disadvantages are when the rival competition has an


advantage over ours firm. For example, if they have a wider selection of
products, a better location, lower overhead then they will have more
profitability and growth that is competitive disadvantage for us.

Most businesses have both competitive advantages and competitive


disadvantages. It is important to understand what they both are and to build on
your strengths. If a business doesn’t have or can’t develop competitive
advantages they won’t survive. For an example assume that you have a store
selling TV’s and your competition is WalMart. They definitely have a
competitive advantage in purchasing and because of the large volume they buy
do buy better. They have a competitive advantage in that many may already be
going to the store for other things and may buy a TV while they are there. They
have a competitive advantage in that they may be able to have a wider selection
of models. Of course, any competitive advantage they have is a competitive
disadvantage for your business.

Also, a company may have competitive advantage in one area and disadvantage
in some other area. For instance, the human resource of a business maybe its
competitive advantage, while its market reputation its competitive disadvantage,
such a company always strives to eliminate its competitive disadvantage by
using its competitive advantage.

2. Examine the microfinance proposal of financing a new hair dressing


shop in Shimla City. Considering the fact that many new shops keep
getting opened every couple of month and there exists persistent demand
for grooming, and hair spa facilities in the area. What are the risks
involved in the proposal? Do a detailed SWOT analysis of the problem.

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The


framework is often used during strategic planning exercises to help an
organization gauge where it stands relative to its competition. The model has
been around for a long time and can prove valuable if used properly. Taking
about Shimla city, it is one of the world-famous hill station. Shimla has no of
branded shops including parlour and Spas. Apart from tourist’s attraction of its
beauty, people often consider it for shopping destination. As number of shop are
already there it is very difficult to make a brand name and maintain it with the
passage of time. For a new Hair grooming and spa centre creating and
maintaining brand value gets all the more tough for it is a very personalised
service which has to be customised. Satisfying a customer is a tough job in such
situations when competition is high and expectation of people from localities all
over the world who visit the place differ highly.

To analyse the potentials and risk of a growing business in a particular


environment, it is important that Internal and external analysis is conducted.
STRENGTHS
 Infrastructure: In a place like Shimla, a good infrastructure, area will
attract the customer the most. It will be the service, customer satisfaction
and aura of the place which will help to get it settle in the environment.
 Human Resource: If services like home services and online booking
services are introduced it will turn out to be a great strength. Two
organizations may have same physical resources, but it is the human
resource which makes all the difference.
 A particular type of customer or income level customer must not be
targeted instead every class of people if included then it will be a good
idea. Customer centric services like different kinds of services, offers,
discount etc. is all what makes the difference.

WEAKNESSES
 Because the Shimla is a hill area geographical condition might not be
favorable, providing home services will be costly to the business.
 Changing of the staff and quitting of employees can be an issue as it is
difficult to coordinate with new employees at first. Regular customers
may feel dissatisfaction as their regular hair dresser knows everything
about their hair design and condition.
THREATS
 Competition in Shimla is bound to be high and it will not be in terms of
quality but also in terms of infrastructure, services and artificial
differentiation.
 Techniques of sale promotion are going to be rigorous. Retaining
customers in such a situation would be highly challenging and would
demand extraordinary service quality.
 People of middle-income group are generally price sensitive it will be
difficult to hold them and keep them satisfied as they can easily change to
some other spa who offers discount or attracting services.
 However, prices if lowered up to an extent as it will hamper the brand
name and value which is the most important asset for such a business in
the very starting of its operation.

OPPORTUNITIES
 Shimla will always be a tourist destination. More people will come which
means many more customers. These customers know less about the
locality, so they will enter a shop looking at its infrastructure and area. A
good aura, smiling staff and synergy in the environment is all what does
the job in such situations.
 Good advertisement and online marketing is a very good way to market
the product. Having a nicely created website and circulated pamphlets
lead the customers to be stockholder.
 To cater to the needs of most important part of the economy ‘middle
class’ and localities, vouchers and combos must be offered and circulated
among the localities and regular customers.

3. A well-known daily newspaper with print edition has a high


circulation but since few years it is facing declining sales due
competition from electronic editions of various newspapers. Discuss
various strategies it would adopt to stay relevant in the current market.

For any business such a condition is dissatisfactory and unfavourable. The


organization may work in two directions. It may improvise internally and
externally. It must use the tools which will help it to know its own operations
level problems and at the same time adjust and analyse its external environment
also. It must move on to identifying and analysing their business strategy and
competitive advantage and compare it with the other organizations. At the same
time the business must also be internally analysed. The company must analyse
its competitors specifically. The present as well as potential competitors must be
analysed and identified to know the exact position if a business firm.
With the developing science every day, technology changes. A machinery
which cover 2 acres of area today, tomorrow it might cover only 1 acre of land.
The company thus has to focus in entering into this new area to equate and
survive in the market. It must take steps to establish itself in the new sector. In
this case, the competition of printed newspaper is from electronic editions of its
rival’s newspaper. It is on the face of it seen that the company is lacking in only
one respect namely electronic editions of its daily. This is basically product
development strategy as you move to a new product, although only the media
changes within the same market. The main steps that need to be taken is:
1. Providing both the hard-copy and soft copy of the newspaper.
2. Appointment of qualified staff for legal purposes and also to make a
website and regulate it and also to regulate apps.
3. Buying of appropriate equipment’s like computers and soft wares.
4. Training the existing employees to the new technological changes in the
environment.
5. The organization must focus on improving its marketing and advertising
strategy and must focus on adjusting the production according to its
demand so that resources are not wasted.
By doing so the printed paper may again gain profit and competitive advantage.

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