The Use Of Analytical Tools To Identify Competitor Threats And Define Key Selling Proposition (KPS) And Unique Selling Propositions (UPS)

Question 1

What does KSP stand for?

Answer 1

Key selling propositions

Question 2

What does UPS stand for?

Answer 2

Unique selling propositions

Question 3

What are the different models of analysis we are focussing on?

Answer 3

• SWOT analysis
• PESTLE analysis
• Porters five forces model

Question 4

What is SWOT analysis? Who developed it? When?

Answer 4

Strengths (internal favourable)
Weaknesses (internal unfavourable)
Opportunities (external favourable)
Threats (external unfavourable)

Question 5

Advantages of SWOT analysis

Answer 5

• little or no cost - just an understanding of the business / organisation is required
• allows organisations to gain a better understanding of their business
• improves strategic planning
• Minimises threats
• maximises gain from opportunities identified
• builds in the organisations strengths
• builds a frame work for developing business goals
• developing strategies for achieving business goals

Question 6

Weaknesses of SWOT analysis?

Answer 6

• over simplification if potentially complex issues - more in-depth research may be required
• some factors could fit into more than one section e.g. expensive high street branch could be a strength but the cost involved could be a weakness)
• it relies on subjective considerations
• may generate a number of ideas or options
• May not give specific solutions or alternative decision- making options
• may generate substantial info but not all of it may be relevant
• should really be complemented by other tools

Question 7

What is PESTLE analysis?

Answer 7

Critical analysis of external factors likely to affect an organisation:

Political events
Economic situation
Sociological or social change
Technological advancements
Legislative or legal frameworks
Environmental considerations

Question 8

Advantages of PESTLE analysis?

Answer 8

• a simple and easy-to-use framework for analysis
• can input into it cross- functional skills and expertise
• helps reduce potential effects and impacts of threats to the organisation
• provides a mechanism that enables the identification of new opportunities - Allows assessment of implication when entering new territories and markets

Question 9

Weaknesses of PESTLE analysis?

Answer 9

• potentially huge amounts of dynamic data available for collection with cost and resource implications
• looks at factors that are evolving in a daily basis - results may be out of date very quickly
• assumptions often form the basis for data used - some subjective decision- making - results based in unfounded assumptions can be problematic
• may require a large group of contributors to reach a balanced analysis
• organisations may restrict numbers of contributors due to time and cost
• May oversimplify info used for making decisions
• results often presented as a simple list of factors that Cana defect the organisation or project without in-depth critical analysis - limitation of simple presentation
• really should be used in conjunction with other tools such as SWOT analysis

Question 10

What is Porter’s Five Forces Model? Who developed it? When?

Answer 10

• the threat from established competitors
• the threat of new entrants
• the threat of substitute products or services
• the bargaining power of customers
• the bargaining power of suppliers

Michael Porter

1980s

Question 11

Porter’s Five Forces Model - Rivalry amongst existing competitors? - what are we looking into in a recruitment context?

Answer 11

• who are the competitors?
• how much is understood about their business?
• what are their strengths and weaknesses?
• Which companies are closing down?
• is there any merger or acquisition activity?

Question 12

Porter’s Five Forces Model - Threat of new entrants - in a recruitment context?

Answer 12

• what startups are there in the sector?
• who may start to target your customers? E.g. new recruitment consultancies, start-ups, new divisions or established players, managed services companies, neutral vendors

Question 13

Porter’s Five Forces Model - Threat of substitute products and services - in a recruitment context?

Answer 13

• what is the likely threat of alternative ways for clients to hire staff?
• threat from managed services it RPO firms, Neutral Vendors or direct channels of recruitment such as social media
• how might this impact the market?

Question 14

Porter’s Five Forces Model - Bargaining power if suppliers - in a recruitment context?

Answer 14

If the candidate is the primary supplier…
- is it a candidate-led market?
- which skills are in short supply?
- how does this impact on candidate sourcing?
- what impact does the rise in social media sites have on the costs for recruitment?

Question 15

Advantages of Porter’s Five Forces Model?

Answer 15

• as with the other models it prompts thought on the current situation of the industry in question in a straightforward, structured, easy to understand, strategic way

Question 16

Weaknesses of Porter’s Five Forces Model?

Answer 16

• danger of gathering too much info and forgetting the focus of identifying issues to decide on actions to reach the best outcome

Question 17

What is the main objective of the SWOT, PESTLE and Porter’s Fiver Forces Model?

Answer 17

To identify issues, followed by actions that can be taken for the best outcome NOT to just gather large quantities of information - danger of ‘paralysis by analysis’