Competitive Strategy 2022 Assignment

Running head: Competitive Strategy
Competitive Strategy
Name of the Student:
Name of the University:
Author’s Note:

Competitive Strategy1
Introduction
The following assignment aims at understanding the competitive strategies that are
planned and implemented in the business. In order to achieve business goal, objective and to
obtain competitive advantage, it is important for the organization to enhance their strategic tools.
The assignment seeks at describing three strategic and competitive tools in a chosen company
that is Woolworths of Australia. The three strategic tools are PESTLE, SWOT analysis Porter’s
Five Force Model. Woolworths implements these competitive tools to understand and state its
position in the market and to understand their competitors. Therefore, the paper would describe
how these tools are useful in organizations and what its outcomes are.
Discussion
The company Woolworths is an established retail industry in Australia. Woolworths
analyses its market and identify the nature of the market so as to remain competitive in the
industry. This analysis is followed by the following tools.
PESTLE Analysis
The PESTLE analysis is a competitive strategic management tool which includes four
factors political, social, economic, technological, legal and environment. These factors are the
macro-environment which helps the organization to identify the potential external factors
affecting the company.

Competitive Strategy2
Political Factor
The political factor impacts the organization with government intervenes in the economy.
The political factor includes the labour law, tariffs, tax policies, the trade restrictions and
political stability. Moreover, the government focuses on particular government laws and
regulations. For example: Woolworths is and Australian company therefore must abide by the
laws of Food Standards Code. This law focuses on the packaged food and its content the industry
must mention all the nutritional information on the package. On the hand the political
disturbances may lead to problems within the organization especially with the investors from
investing in the business. Since, the company Woolworths is already and established company
there is less impact of the political factors.
Economic Factors
The economic factors predominantly include inflation rate, interest rate, exchange rate
and economic growth. The economic factors greatly influence the operations of the business and
how the business takes appropriate decisions. The financial position of a company is highly
influenced on the economic factors. It is observed that in Australia there is decrease in disposal
income and thus has diminished the purchasing power; this is due to the drastic economic crisis
in Australia. Even due to the rise in living cost it has lowered the rate of purchasing power. This
factor does impact the price of the products and therefore, Woolworths has to lower the price of
the products. The ease in economic regulation has provoked good opportunity for the new
entrants.