Strategic Analysis Tools
Cambridge A-Level Business 9609 | Topic 6.2.2
Total Questions
15
Total Marks
35
Pass Mark
21
Section A: The Dictionary Test
AO1 KnowledgeWhat does 'T' stand for in PEST Analysis?
In Porter's Five Forces, what is a 'Barrier to Entry'?
What is a 'Core Competence'?
In SWOT Analysis, what does 'Opportunities' refer to?
Which of Porter's Five Forces examines the power of customers?
Section B: Application
AO2 ApplicationContext: Netflix faces aggressive competition from Disney+ offering lower subscription prices and exclusive Marvel/Star Wars content.
Which of Porter's Five Forces is MOST directly illustrated?
Context: Tesla's electric vehicle technology and battery efficiency are years ahead of traditional car manufacturers.
Identify Tesla's Core Competence in this scenario.
Context: Amazon operates in a market where consumers can easily compare prices online and switch retailers with one click.
How does this context affect Bargaining Power of Buyers?
Context: A UK supermarket conducts PEST analysis and identifies rising health consciousness and demand for organic foods.
This trend would be classified as:
Context: Apple's SWOT analysis reveals strong brand loyalty (Strength) but identifies rising smartphone market saturation (Threat).
What strategic response does this SWOT pairing suggest?
Section C: Strategic Analysis
AO3 AnalysisAnalyse how HIGH Bargaining Power of Buyers affects a business's profitability.
Analyse how LOW Barriers to Entry threaten an established business's market position.
Analyse why a strong Core Competence can lead to sustainable competitive advantage.
Analyse how the Threat of Substitutes affects pricing strategy in the soft drinks industry.
Analyse how PESTLE analysis helps businesses identify strategic opportunities in emerging markets.
Lead Examiner Guidance
Porter's 5 Forces Trap: Students often confuse "Competitive Rivalry" with "Threat of New Entrants." Rivalry = existing competitors fighting NOW. New Entrants = potential future competitors.
SWOT Misuse: Strengths/Weaknesses are INTERNAL (what the business controls). Opportunities/Threats are EXTERNAL (market environment). Exam mistake: listing "High Competition" as Weakness instead of Threat.
Chain Analysis Requirement: Level 2 = simple link ("High buyer power reduces prices"). Level 3-4 = developed chain showing multiple consequences through to final financial impact. Always end chains with profit/revenue/market share impact.
Core Competence Precision: NOT just "any strength" - must be: (1) Distinctive, (2) Customer-valued, (3) Hard to imitate. Example: "Good customer service" is NOT a core competence unless world-class like Ritz-Carlton.
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