Analysis of Business Strategies for SWOT, PESTLE and Porter's Five Forces Framework

Running head: ANALYSIS OF BUSINESS STRATEGIES
ANALYSIS OF BUSINESS STRATEGIES
Name of the Student
Name of the University
Author Note

1ANALYSIS OF BUSINESS STRATEGIES
Analysis of SWOT Framework
SWOT framework is used for analysing the internal environment of various
organizations in a detailed manner. The different aspects of the business that are a part of the
SWOT analysis process are strengths, the weaknesses, the opportunities and the threats. The
framework helps the strategists and the managers of different organizations to formulate
effective strategies.
Strengths – The various strengths that are related to the organization are, the
marketing mix elements, the USP of the products and services and the share the company
holds in the market. The demands that are related to the various services and products of the
organization and the management style that is followed in the companies are the major
strengths. The strengths enable the company to create a competitive position in the market
(Yu, 2017).
Weaknesses – The weaknesses are also a major part of the operations of
organizations in the market. The weak usage of the financial resources of an organization
form major weakness. The analysis of the reasons behind the company losing out to
competition in the market form a part in the weaknesses. The lack of loyal stakeholders in the
organization are also a weakness of these companies.
Opportunities – This aspect is related to the analysis of the possibilities of expansion
and innovation of the operations of various organizations. The new market areas where the
company plans for its operations and the expansion of its product and service offerings are
also major opportunities (Shabanova et al., 2015).
Threats – The high levels of competition in the market and the low prices of similar
services and products offered by the competitors are major threats to the operations of the

2ANALYSIS OF BUSINESS STRATEGIES
organizations. The control that the organizations have over their revenues and credits are
analysed as a part of the weakness related factors. The old and outdated technologies used by
organizations are also a part of the weakness.
Example – The SWOT framework is used for analysing the retail industry and the
different aspects can be easily analysed with the help of this tool. The strengths of the
retailers can be analysed by discussing the financial backup that he has and the prices that he
offers to the customers. The unique product offerings of the retailers also form a part of the
strengths. The identification of weaknesses are also important in case of the retail industry as
it depicts the strength of the brand image of retailers. The opportunities of retailers are related
to expansion and identification of consumer needs. The threats that are posed towards the
profitability of the retailers helps them in formulation of strategies.
Analysis of PESTLE Framework
The PESTLE Framework is mainly used for the analysis of the external environment
where the organization has its operations. The most important factors that are analysed with
the help of this framework are, political, economic, legal, technological, social and
environmental. The PESTLE analysis framework provides a holistic view of the external
environment of an organization. The various aspects related to PESTLE analysis are
significant in understanding the industrial environment.
Political – These factors deal with the ways by which the government interferes in the
operations of the companies. The policies and the regulations that are formulated by the
government have immense effects on the organizational processes and profitability. The other
factors that are related to political aspects include the fiscal policies, the trade tariffs which
are decided by the government (Frynas & Mellahi, 2015).