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To which extend the external environment can effect on the org. strategy?
Dr. Porter identefied two generic strategies which are lowest cost and differentiation.
We can identify the strategic choices for organization by doing SWOT analysis and competitive analysis.
SWOT analysis classefies internal stregths and weaknesses and external opportunities and threats.
Competitive analysis identifies the five competitive forces (suppliers, customers, substitutes, New entrants, & rivalry between current competitiors). Identifying the these forces allow you to define your position in the industry's strategic groups using the results of the the SWOT analysis.
Strategic choices for an organization depends on external environmental factors more, than internal.
Strategic choices depends on several factors - location, resource availability, market scenario, transportation options, governamental supports, political stability, etc.
