Strategic management is significant for each and every business unit to sustain in the competitive market. It is related to the strategies and plans which can provide competitive advantage for an organization over it rival firms. This report is based on Stylerunner which is an e-commerce platform that operates their business operation in Australia. It provides a wide range of products to its customers. The purpose of this report is to significance of strategic management practices in small and new businesses that can help to gain competitive superiority over others in the market.

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Industry attractiveness is one of the important factors which influence new businesses in the market. There are various reasons which can influence an organization like market opportunities, attractive potential profit and long term growth in the market. Today e-commerce platform business is growing day by day due to internet connectivity and increasing internet users. Stylerunner requires to conduct a careful analysis of competitive forces that can affects the business in Australia. Porter's five forces model can help to identify and analyse the effectiveness of market which can help to make their long term strategies accordingly. Following is the competitive forces model for Stylerunner:

Bargaining power of suppliers

It is one of the important forces that can identify and analyse the bargaining power of suppliers (Herman, 2011). Stylerunner has a large number of suppliers which have limited bargaining power Because of the reason that firm can buy their material from different suppliers. It can help to provide products at lower rate to its customers.

Bargaining power of buyers

There are large number of e-commerce companies which can increase the level of competition in market. As per the given scenario, firm sales can be affected by its customer. It isbecause there are large number of e-commerce business units. It can provide wider choices to the customers, so that they can buy their products anywhere they want.

Threats of new entry

There is no barriers on the entry of firms in e-commerce sector. It can make the market more complex and competitive. As e-commerce industry is growing day by day, it can attract companies. If Stylerunner is required to compete in the market, they can provide high quality at lower prices as compared to others. It can give competitive advantage to the firm.

Rivalry among existing firms

There are various other firms which are already in the e-commerce market. They have more experience and expertise in this industry. Additionally, they also have large capital which is not good for a small business unit

Threats of substitute products

It is another factor which can affect the business operations and profitability of company. For example if Stylerunner can sell products of a particular brand, on the other hand, the same products is sold in the market offline. It can hinder the growth of new firms.

Resource based views is an approach which can help in increase performance and productivity. It can differentiate a firm from other business unit. In this approach higher authorities of the firm can analyse internal environment and use their resources more effectively.

Resources of the firm are valuable for Stylerunner which involve assets, skills, information, capabilities, organizational culture, organizational process, business attributes and knowledge. It can help to provide the products and services to its customers in a satisfactory manner. All resources are not equally valuable for the company. All resources can not give the strategies advantage to the firm. Only few resources can make the business unit different form their rival companies. For the company there are following attributes which can provide the strategic superiority are given below:


The resources which are valuable to the company comes under the valuable. These resources can give the competitive advantage to the firm. The valuable resources of Stylerunner is high quality products that can help to increase their sales and profitability.


In this category, those resources are involved which are unique from other firms and can give strategic advantage to the business unit. The firm having strong logistic system which can falls under the rare resources of the company.


It includes those resources which can not provide the competitive advantage to the business unit. For Stylerunnern, after sale services are more effective as compared to its rival firms. It can help to build the competitive advantage for organisation.


In this category, resources which are not equal to other resources. can be called non-substitutable. For the business unit, their local vendors can be non-substitutable resources which cannot give strategic advantage to the firm.

Core competency is a uniqueness which can be technology, skills, capabilities, information and knowledge for a business entity (Montabon, Sroufe and Narasimhan, 2007). It can create different value for its customers. For Stylerunner, core competencies of the company can be wide range of products with higher quality, lower quality products as compare to others etc. These core competencies can help the firm to make value of its brand in the market. These capabilities can also help in giving competitive advantage to the firm. If organisation provides high quality products to its customers, it can lead to increase the customer loyalty. Therefore, company is required to maintain their core competencies which can help to create and develop a valuable online platform in Australia.

A competitive advantage makes the firms better in a competitive market. It is the superiority which can differentiate organization's products and services in terms of quality and lower price as compared to its rival firms. These attributes can give company the competitive advantage. Stylerunner is required to gain competitive superiority from following approaches:

Cost Advantage

It is one of the important approaches which can help company to develop competitive advantage for the firm. If a business unit can provide products at lower price as compared to other firms, it can help to increase the sales and output of company. It can lead to increase the profitability generation (Nair, 2006). Corporation is required to contact those suppliers which can provide goods at lower price. Additionally, they can use effective approach like optimum utilization of their resources and make their logistics system more cost effective. It can help to gain competitive advantage over others in the market.


It is another weapon which can be used by the business units to gain competitive advantage. In order to make their product more unique, firms can try to create uniqueness in their products and services as compared to its rival business unit. In order to provide differentiate products and services to its customers, they can make their products technologically advanced, different uses of the products and best services. It can help to increase the market share and profitability of company (Freeman, 2010). Small business unit can make their products highly qualitative which can help in building customer loyalty. The firm can also use premium products for their customers which can help to increase the market value and goodwill in the market. Stylerunner manager is required to make their brand valuable and more superior. It can help to build market competitiveness and provide strategic advantage to its customers.

Value Creation

These attributes can help company to create and build the value for their customers as well as organization. Manager of business unit is required to focus on making activities effective like on time delivery, fast replacement and a sound after sale service can help to support the value chain of firm. The firm can focus on maintaining long term relationship with their vendors. These vendors can make fast supply of goods in the peak time.

It is important for a new business unit that they can make a long term plan and strategy which can help to grow their business. Higher authorities can focus on the customer services. A customer centric approach can be useful for company to sustain in the competitive market (Herman, 2011). They can concentrate on their transportation and logistics system. It can help to support their business activities in order to provide fast delivery of goods form vendor to the customer. Another important task is related to the after sale services as there are various issues that can create a serious problem for a new business. If company can resolve customer issues in an effective manner, it can help to increase the customer satisfaction level. A satisfied customer also can repurchase the firm’s goods and services. These issues can be replacement of existing products, repair of the existing products, repayment issues, etc. All these problems can be solved quickly by the business entity. It can help to give competitive advantage to the firm over its competitors.


As per the given report, it has been concluded that strategic management helps the new business unit to sustain in complex and competitive business environment. It has been assessed that cost and differentiation advantage can help the firm to become more competitive in the market. Additionally, it also explained the resources, core competencies and other attributes of company which can provide long term growth and strategic advantage.


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