The analysis of competitive strategy

Running head: ANALYSIS OF COMPETITIVE STRATEGY
ANALYSIS OF COMPETITIVE STRATEGY
Name of the Student
Name of the University
Author Note

ANALYSIS OF COMPETITIVE STRATEGY1
1. Introduction
The three major competitive strategy formulation tools that have been selected for
analysis in the essay are Resource based view framework, Porter’s five forces framework and
SWOT examination tool. The tools have been selected for analysis based on industry
examples as they are helpful for understanding the resources that have been gained by the
organization. On the other hand, Porter’s five forces framework can be implemented to get a
detailed picture of the industry in which the company operates. SWOT framework is also
useful for studying the internal environment of the company (Bagnoli and Giachetti 2015).
2. Explanation of Resource based view framework
Resource based view is considered to be a managerial framework that can be used for
the purpose of determining the strategic resources that a firm is able to exploit for achieving
competitive edge. The Resource based view or RBV framework is able to shift the focus of
managerial attention towards the internal resources that have been gained by the firm. The
proper identification of capabilities, competencies and the assets of the firm is considered to
be an important part of the analysis that is done with the help of this tool. This tool has
become quite dominant in the process of strategic planning that is used by the modern
organizations (Bereznoi 2015).
The use and implementation of resource based view can be understood with the
example of a major retail organization named Walmart. The global supply chain of Walmart
and expertise of operations management are considered to be major strategic resources of the
company. The competitive advantages of Walmart are analysed with the implementation of
VRIO or VRIN framework. The value chain analysis of Walmart is also considered to be a
major aspect that is related the analysis that will be made with the help of this framework

ANALYSIS OF COMPETITIVE STRATEGY2
(Walmart.com 2019). The capabilities and resources of Walmart can be examined by
implementing VRIO framework in the following way,
Organizational capabilities and resources of Walmart,
Non-core competencies
Organizational
capabilities and
resources
V -
Valuable
R – Rare I -
Imitable
O -
Organization
N – Non-
substitutable
Non-core
competencies
Ease of access to
adequate human
resources
Yes
Diversity in
product offerings
Yes Yes
Broad set of the
private label
brands
Yes Yes
High potential of
package delivery
network
Yes Yes
Sustained
competitive
edge
Systems of
inventory
management
Yes Yes Yes Yes Yes
Strong value of
brand
Yes Yes Yes Yes Yes
Strong power of
bargaining
Yes Yes Yes Yes Yes
Vast supply
chain on global
basis
Yes Yes Yes Yes Yes
Majority of e-
commerce
operations
Yes Yes Yes Yes Yes
Extensive access
to the consumer
data
Yes Yes Yes Yes Yes
Data mining
capabilities and
Yes Yes Yes Yes Yes