Report Essay Example | Topics and Well Written Essays - 500 words - 14

Report - Essay Example Electronic Retail Company, Strategy is the direction and scope of the firm over the long term preferably over five years which achieves advantage in changing environment through its configuration of resources and competencies with the aim of full filing stakeholder expectations (Kaplan & Norton, 2001, pg.7). This explains why the past 5 years of ERB Ltd as been put under critical discussion and analysis (Crosetto,2005,pg.38). The Strategic position of ERB Ltd. considers the influence on strategy on the external environment, the organisation’s goals, culture and strategic capability, which will include the resources and competences of the organisation (Abrams, 2003, pg.121). This is significant towards its continued competitive strategies in this dynamic business society influenced by globalization. The ERB Ltd. strategic position is concerned with the impact on strategy of the macro environment, internal resources and competences, expectations and influence of stakeholders (Abrams, 2003, pg.258). The Macro environment factors and competencies of ERB Ltd. are studied using Pestle, Swot, Porter’s 5 Forces, Strategic Capabilities Analysis and Stakeholder mapping. Our company follows cost leadership strategy. The reason of our choice is that we achieve to be supplied with products from manufacturers at lower cost. In addition, we do our best to offer the products to customers at the lowest possible price (Schermerhorn, 2010, pg.223). Since we are focussed on selling quality products and offering outstanding customer service to our clients, marginal cost pricing technique is paramount in respect to our continued profit margin. As accost leadership strategy believer, the company observes the pricing behaviour of other firms and set prices slightly below the market average thereby attracting more customers and realizing greater sales (Hill & Jones, 2010, pg.157). ERB Ltd reconciles the idea of affordability of their products with their relatively cheaper