StrategyStrategic planning means thinking and taking initiative actions and implementing them further for better business performance. The strategic plan can vary among different types of business and generally involves setting a goal, allocating actions to achieve the goals, and implementing resources to achieve the actions. Role of StrategyStrategy provides a framework for developing plans and further implementing them. Strategies must be understood by managers and team members to enable more effective decisions for the organization. If this is done and enforced, then remedies can be applied where they are most needed. For example, if a company needs to update the software of its product, then it should focus on the competition. If there is more competitive rivalry, there will be more pressure on pricing, profits and strategy. Competitive rivalry may be high due to the fact that similar companies operate in the same industry, or have the same strategies for marketing their product. Threat of New Entrants:- Competitive threat comes not only from competitors who exist in the market but also from those who are potential new entrants in the market. The few reasons for the obstacles are: - high initial investment required to enter the business, high switching costs for consumers, difficulty in accessing raw materials. Threat of substitutes:- Threat of substitutes means that the substitute product is the one which is in another industry, but they are used to meet the same need as the substitute product. The few factors that have affected the threat of substitutes are: - brand loyalty, relative prices, etc. Bargaining Power of Buyers:- Bargaining power of buyers means that buyers have more power to influence prices in the industry that they become an important element to consider for the