Two Theories or Models
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Two Theories or Models
The study is based on the behavior and culture of retail management in e-commerce organizations aid in retaining a continuous competitive advantage through strategic management. The two theories that will be discussed are the operations strategic matrix and Porter’s five forces model. The operations strategy matrix is defined as a tool that enables organizations to make strategic operations decisions. The key aspects that this model focuses on are decisions on capacity, process technology, and supply chain networks (Wu et al., 2019). The goal of these elements is too to ensure quality, flexibility, cost, quality, and dependability. The model is crucial as it stipulates specific goals that would shape the organization’s behavior and culture over time. For retail management in e-commerce, competitive advantage depends on the purposes of the elements that the operations strategic matrix focuses on.
The Porter’s five forces are essential in determining the competitive advantage of the organization. The study aims at identifying how retail management in e-commerce can retain a continuous competitive advantage. The significant aspects of Porter’s five forces consist of supplier power, the purchasing power of buyers, competitive rivalry, the threat of substitution, and the threat of new entrants (Nurlansa, & Jati, 2016).In developing a strategic plan for strategic management, these five factors would guide the organization in decision making. Therefore, the organization would be prepared early enough for the industry and thus gain a competitive advantage. It is also imperative because e-commerce evolves at a high rate, which calls for innovative ideas. For example, competitive rivalry studies the behavior and culture of competitors to the organization and finds a solution to overcoming them. The major decisions that can be made using the Porter’s five forces include entry to some industry, capacity management, and development of competitive strategies.
References
Nurlansa, O., & Jati, H. (2016). Analysis of Porter’s five forces model on Airbnb. Elinvo (Electronics, Informatics, and Vocational Education), 1(2), 84-96.
DOI: https://doi.org/10.21831/elinvo.v1i2.12457
Wu, L. F., Huang, C., Huang, W. C., & Du, P. L. (2019). Aligning organizational culture and operations strategy to improve innovation outcomes. Journal of Organizational Change Management. DOI:10.1108/JOCM-03-2018-0073/