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Introduction: Strategic Analysis of Sentek Solutions Limited in the Automotive Industry Assignment Sample

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Strategic management involves continuous planning, monitoring, and controlling of work and activities to achieve goals. Organizations need to think strategically and make decisions considering rapid innovation, emerging technologies, and customer expectations to achieve desired results. The process includes analyzing internal and external strengths and weaknesses, formulating plans and policies, implementing them, and evaluating the degree of success. This report focuses on Sentek Solutions Limited, a well-known specialist optical electronic device company in the European automotive industry. It aims to research the company's internal and external analysis, identify recent trends, and satisfy consumer needs. Using tools like PESTLE analysis, the report explores factors influencing the organization's operations. By analyzing internal resources, competences, skills, and potential advantages, the company aims to convert weaknesses into strengths and achieve growth. The objective is to evaluate all factors before launching new products and entering new marketplaces to capture a larger market share. The report aims to provide a comprehensive analysis of significant factors for successful market expansion.

Analysis of the industry

In external analysis organisation focus on wider business and their different factors that influence business. Following are the main aspects that are very important to consider to grab large market share.


Pestle connect with access to external environment that are very important for reach at desirable outcomes by evaluating each and every aspect.

Political environment

In political environment it deals in UK is changing political philosophies that are modify or competition with one another. These changing philosophies impede operations of Sentek Solutions.

In that key driver of political philosophies that change that with the current government and departments and agencies (Blackburn, Hart and Wainwright, 2013).

Political factors within UK have great impact on performance of Sentek Solutions. At present scenario customers and governments debts are very large. And continuous change in governmental policies within UK raised so many problems for Sentek to perform their functions. In context with this, by adaption of various strategical tools and techniques, company can adopt effectively strengthen their position to overcome these factors.

Social environment

In that changes in needs of consumers In recent trends of Sentek Solutions is an specialist of optical electronic device manufacturer and supplier company. In its recent trends consist of Improving accuracy with help of machines. It mainly focus on adaptation of artificial intelligence so that desirable outcomes should be attain. Another trend of that organisation is digital twins that permits about virtual copy of machinery or system. It mainly focus on improve in their safety and security needs by protecting cyber attacks on infrastructure so that better results should be accomplished (Chang, 2016). For that organisation have to change in their working style.

In there key drivers are changing needs of consumers and competitors forces that emphasis on adopt changes.

Social factors mainly include buying behaviour and trends of consumers and also in their taste and preferences patterns. All these factors can adversely hamper working performance of Sentek Solution by lowering down morale of employees. For this company managers is required to formulate effective strategies and policies with the help of which they can analyse actual taste and buying pattern of consumers and ensure their sustainability for long run in simultaneous manner.

Economic environment

In economic main issue that face by Sentek Solutions is percentage change in real income of individuals per income that impacts directly on their business.

Key driver of that issue is income elasticity of demand and rising inflation in UK that negatively impacts on business (Spender, 2014.)

Economical factor affect performance of an organisation in many different ways therefore, it is important for Sentak manager to have adequate required knowledge of country economic condition on order to formulate strategies.

Sentak Soultion manager can take advantage of UK market economic condition as it is stable and run their functions in effective way. While, for adverse situations like, availability of raw material, transportation, and market conditions can hamper growth performance of company. Therefore, by adopting effective measures relating to pricing and productivity company can strengthen their internal working condition.

Legal environment

Sentek Solutions regulates in UK where majorly Trade restrictions exist with foreign ownership restrictions available that impacts on business of organisation. While operate in different environment it faces by them.

Drivers of that change is changes in power that held by parties that change according to time in UK.

With the implementation of various strategies related to legal and political measure Sentak Solution can decrease situations of conflict in terms of legal issues that can be faced by organisation. Managers of Sentak by possessing proper knowledge of legal terms within UK can effectively formulate strategies so to ensure long term sustainability of company. 

Technological environment

In case of Sentek Solution has to change in working condition because consumers are more demanding now and to give productive products. In that by new process of production that is recent change in UK that is use of robotics by to get effective results in quick way (Wheelen and, 2017).

Driver of change is technological advancement in organisation and emphasis on giving compensating demand in advance way.

Technology is taking place every essential part in an individual life, so by adopting innovative technological measures in working structure of their organisation Sentak managers can satisfy their existing and future customers in best possible way and ensure long term sustainability and profitability on simultaneous way.

Environmental factors

In all over world people are more aware about environment and always wants product that are eco friendly. In that case of Sentek Solutions they have to reduce their wastage and have to provide less erosion products.

Driver of change is awareness of consumers and country conditions that force to produce eco friendly products.

It is important for Sentak Solution to have proper knowledge of environmental rules and regulations and abide them in effective manner so to secure their organisation to being get affected form any kind of environmental factor.

Porter five force model

Porter's five force model is an important attribute that describes about external forces that impacts on both positive and negative way to business. In case of Sentek Solutions they have some main attributes that are as follows:

In porter five force model consist of five important factors.

Threat of new entrant

It is very difficult for new brand to enter in that industry and the reason is that large investment is require to enter in that market (Goffee and Scase, 2015.). Also manufacturing facilities, distribution network and most skilled staff is required to gain large market share. In case of Sentek Solutions for it low threat of new entrant is exist. With another major attribute is higher competition is exist already in that industry which hinders other competitors to enter in that market.

Threat of new entrants hamper market share base for existing firms in order to achieve high profitability. New entrants can get easily attracted towards profit and can enter with an ease that may hamper performance and profitability of existing industry. 

Bargaining power of suppliers

The bargaining power of suppliers is weak in that sector because most of players are weak of that industry. Only few players are big in that industry. With threat of forward of integration in forward direction is also minimum for suppliers. In main suppliers of that company are German manufacturers SSZ and PPT etc.. hence Sentek Solutions is faces low bargaining power of suppliers.

Bargaining power of suppliers are determined by number of suppliers, dependence of supplier on specific buyer, switching cost and forward integration by suppliers. Bargaining power of suppliers become high when switching cost to other suppliers is high, threat of forward segregation is broad and substitutes are not available. Sentek solution is hardly affected by this aspect as they have many suppliers.

Bargaining power of buyers

In that industry mostly buyers are large individuals who purchase in small quantity and government and corporations buy in fleets of these equipments (Jeston, 2014). In case of Sentek Solutions buyers are in position to bargain for lower prices.

Bargaining power of buyers depend on number of buyers which specific supplier has, addiction of buyer's purchase for specific supplier, switching cost and backward integration plays effective role in this. With respect to Sentek Solution, bargaining power of buyers is high when switching costs of buyer is low and when buyer purchases product in bulk. These are some factors which can have negative impact on growth of Sentek Solution but if they provide quality services then there is hardly any threat.

Threat of substitute products

In case of Sentek Solutions they have weak substitution power because customers not frequently substitute products from other one. In case of Sentek Solutions products in which it deals they are less substitutional.

Threat of substitutes is high when alternatives are present at low prices, switching costs of customers are low and quality of substitute product is equal. This factor has high threat to Sentek as customers can opt for other products.

Competitive rivalry among existing players

In that industry recognized and brand name is low and exit barrier for that industry is very low. In case of Sentek Solutions main competitors are Mouser electronics, GM Sentek Solutions etc..

There are different competitors within market who are threat to Sentek as they are also providing services in same sector. If they provide their customers with effective services and customers develop interest in their products then they only need to enhance their services continuously.

Power opportunities and threats

In automotive industry there are large no. of opportunities that it can grab to enlarge its market share. Firstly it deals in products that rarely companies deal in such as radar technology, port system technology, robotics and semiconductor manufacture. So it can grab large market share with less rivalry in market (Laudon and Traver, 2016.). Another opportunity is that it is most evolving industry with high growth share. That organisation and industry gives contribution in improving production efficiency and helps in get effective results. Sentek Solutionshas major opportunity is that it has b suppliers that helps in deliver of products with accuracy.

On other hand it has lot of threats is that entry and exit regulations is very harzdous in that industry. In case of Sentek Solutionsit faces problem of lack in highly skilled workforce that hinders their production capabilities in adverse manner.

Hence it is most attractive industry to attract large no. of players towards them but on other hand due to requirement of huge investment people less interest in participation.

Critical analysis

it has been concluded that it has been favourable working conditions and external factor also favours its business but sometimes fluctuations in business environment impacts negative on them.

Internal analysis of the firm

Core competencies

Core competencies is an management concept and theory that is horizontal combination of various resources and skills that differentiate company from others in marketplace.

In its core competencies is their robots that covers multitude of devices that are mechanical in nature and widely differ in case of autonomy. One most thing that robotics design that make life easy with their LiDAR sensors that attracts large no. of consumers towards them. Use of robotics system and device reduce their cost with increase efficiency level and increase in their productivity. Their sensor devices are small, power fugal system and light weight so any one can carry easily. In robotics resources consist of path planning, mapping, SLAM are major attributes in Sentek Solutionssolutions ( Lawton, 2017.). They have the skill to make safety products for their consumers and take care also about the environment. It produces automated guided vehicles and other vehicles that look obstacles in path. Further they have path mapping devices and collision devices that give important attribute for safety at workplace. In its main resources are machinery tools and techniques which make life easier and they use Mats, bumpers and rails to give technologies to lead in market. These devices are highly safe and secure with increase in productivity level (McGrath, 2013.).

Value chain

Value chain is an chain of activities that should be used in particular industry to deliver valuable products and services into market. In case of Sentek Solutionsit follow particular path to deliver qualitative services to their ultimate consumers. Sentek Solutionsfollows firstly inbound logistics and then take part in operations after that it follows outbound logistics and then participate in marketing and sales to publishing their products at world-class. Then they provide services to ultimate consumers

VRIN model


Product of Sentek Solutions are very valuable that makes it competitive enough in market. In their company due to nature of process human can not enter into clean rooms so robots work in that condition and it increase their efficiency level and semiconductor device helps them to communicate within human and robots.


There products are rare in world that helps in avoiding obstacles, making decisions and enables to localise all significant decisions that allow organisation to capture all possible opportunities. It sensors are highly convenient to handle and small in size so these all factors shows rareness of products. These products also accessible and rare for students, teachers and researchers that are used by robotics students and sensors of Sentek Solutions that are used in whole Europe (Rugman and Verbeke, 2017.).


they work on unique concept and its SPS covers with digitalize automation with use of sensors with intelligent solutions of projects. That are not possible for any company to access to fully digitalized industrial world. It focus on giving practical solution of problem in any area in which Sentek Solutionsdeals (chaltegger, Lüdeke-Freund and Hansen, 2012.). It product goods that are rare for any other company to copy and if it copy then it enhances cost.

From above it has been found that, VRIN framework helps to ascertain if resources are able to provide sustainable competitive vantage within market. Resources must be valuable, this means that sources which are provided by Sentek are of greater value in both benefits and costs. Resources should be rare, that implies scarcity related with demand for its usage. They must be inimiatble which means that services provided by Sentek should not be easily copied by competitors. Resources used by Sentek must be non-substitutable which indicates that resources must not be functional substitutes.

Non substitutable

Sentek Solutionsprovides smallest 3 safety laser scanner in their product category in market place that are use for protect and safe from AGVs that are very hard and difficult to other organisation to provide in competitive manner. It provide safe environment to cope up with changes that occupied in near future in industry and give safety measures to safe environment. It

Competitive skills and advantages

In their competitive skills consist of high quality sensors and devices that are rarely found by any company and that enables to increase their efficiency level. Sentek Solutionssolutions provide devices that are completely safe for environment and no probability of accidents.


They differentiate their products by creating cutting optical devices that helps in increase their productivity. It produce products that are safer in nature, give profitability and also product-base. It enables to places should be free from obstacles and easy to deliver data and information to get desirable results (Scholes, 2015). Hence it is most valuable in their industry type and give most rare products to their consumers but it faces problem of lack in training and education of their employees that impede their growth and give negative results. From the above discussion it should be summarised that external factors majorly influence on their business decisions and affect positively on business environment (Shuen, 2018.).

Critical analysis

it has been critically evaluate that all points and attributes are in its favour that are mentioned above but some problems also face by it that is lack in higher education of employee in work place.


From the above report it has been concluded that it should be in position to achieve aims and objectives that are above mentioned. From the above report it has acknowledged that to succeed in business environment organisation have to thoroughly research on different aspects so that it can easily drawn out opportunities and threats and easily can convert it into their capabilities. With from above research it found that external environment should be uncontrollable but internal environment can be control at maximum level so that they are very important for organisational growth and advancement. business strategy is an significant attribute in organisational development and enhancement to fulfil goals and objectives. Before aimed a new strategy firm have to emphasis on various aspects in which internal and external factors by various methods in which PESTEL, porter, SWOT analysis are important attributes that provides their help in collection of different views and concepts. By analysing strength an organisation can easily evaluate possible opportunities and threats that can encounter by it in near future.


Books and journals

Bharadwaj, A. and ., 2013. Digital business strategy: toward a next generation of insights.

Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business, strategy and owner-manager characteristics. Journal of small business and enterprise development. 20(1). pp.8-27.

Chang, J.F., 2016. Business process management systems: strategy and implementation. Auerbach Publications.

Goffee, R. and Scase, R., 2015. The Real World of the Small Business Owner (Routledge Revivals). Routledge.

Jeston, J., 2014. Business process management. Routledge.

Laudon, K.C. and Traver, C.G., 2016. E-commerce: business, technology, society.

Lawton, T.C., 2017. Cleared for take-off: structure and strategy in the low fare airline business. Routledge.

McGrath, R.G., 2013. The end of competitive advantage: How to keep your strategy moving as fast as your business. Harvard Business Review Press.

Rugman, A. and Verbeke, A., 2017. Global corporate strategy and trade policy. Routledge.

Schaltegger, S., Lüdeke-Freund, F. and Hansen, E.G., 2012. Business cases for sustainability: the role of business model innovation for corporate sustainability. International Journal of Innovation and Sustainable Development.  6(2). pp.95-119.

Scholes, M.S., 2015. Taxes and business strategy. Prentice Hall.

Shuen, A., 2018. Web 2.0: A Strategy Guide: Business thinking and strategies behind successful Web 2.0 implementations. O'Reilly Media.

Spender, J.C., 2014. Business strategy: Managing uncertainty, opportunity, and enterprise. Oxford University Press.

Verbeke, A., 2013. International business strategy. Cambridge University Press.

Wang, J. and Verma, A., 2012. Explaining organizational responsiveness to work‐life balance issues: The role of business strategy and high‐performance work systems. Human Resource Management. 51(3). pp.407-432.

Wheelen, T.L. and, 2017. Strategic management and business policy. Pearson.

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