Competitive Strategy Development Essay 2022

Running head: COMPETITIVE STRATEGY
Competitive Strategy
Name of the Student
Name of the University
Author note

1COMPETITIVE STRATEGY
Introduction
The essay throws light on the different kinds of tools related to strategy
development which will be suitable for the growth of the companies suitably. In the
current scenario of the business environment, the strategic planning is the
organizational management activity which is being utilized for setting of the different
priorities, resources as well as focus energy which will be suitable for strengthening
the different operations effectively (Yin 2016). With the implementation of the
strategic development tools, it will be suitable for achieving the common goals along
with establishing agreement around the intended outcomes along with assessing as
well as adjusting the organization’s capability in managing the different activities
suitably which will be suitable for managing the effectiveness. The strategic
development tools will be clarifying the vision and formulate as well as implement
strategy appropriately. Through the different strategic development tools such as
SWOT, PESTEL and Ansoff Matrix, it will be suitable for the growth of the company
as it will analyzing the external and internal capabilities and threats which can affect
growth of the firms negatively. There will be inclusion of the different instances of the
different companies which will be helpful in understanding the role of tools.

2COMPETITIVE STRATEGY
SWOT Analysis
SWOT Analysis is defined as the framework which is useful for analyzing the
strengths and weaknesses along with understanding the external opportunities and
threats which can affect the growth of the firm negatively or positively. It helps the
companies in identifying their strengths and opportunities which will be allowing them
to focus on the same and they can take the great possible advantage of the same
(Rezaei, Khavarian and Ghafurzadeh 2016). It is the way through which the current
situation can be analyzed and it can be used for the goal setting approach for giving
the best benefit that enhances their growth in the competitive business environment.
Strengths- It analyzes the different business processes in which the company
us successful along with understanding the different competitive advantage aspects
which helps them in becoming more effective. Weaknesses- The different issues in
the business model of the company and the different processes of the business in
which proper improvement is required (Phadermrod, Crowder and Wills 2019).
Opportunities- The company needs to know the different opportunities such as
whether the market is growing in the respective locality and the future developments
of the company successfully. Threats- The analysis of the different competitors
which are making the company face tremendous issues in their growth prospects
(Rezaei, Khavarian and Ghafurzadeh, 2019).
For instance- SWOT Analysis of Apple will be suitable for understanding the
different future prospects of the company. Strengths- It is the globally iconic brand
and it prepares and sell the different products which are made with the
implementation of top technology. Weaknesses- There is lack of marketing as well
as promotions made by Apple which can be difficult for the company to compete in
the market and the high-priced products can create difficulties for the company to
create negative impact (Apple.com 2019). Opportunities- There is consistent
growth of the different customers which can create a huge growth-related prospect
for Apple and it will be suitable for intensifying their distribution network. Threats-
There is increasing competition in the market and due to the same it can affect their
growth prospects.

3COMPETITIVE STRATEGY
PESTEL Analysis
The PESTEL analysis is defined as the framework which will be suitable for
making the businesses identify, evaluate and discover the different macro-economic
factors which can impact on the business now and in the near future as well.
Through the PESTEL analysis, it will be suitable for identifying the different kinds of
issues and threats while they will be expanding their business operations in the other
foreign country (Jiang et al. 2018). With PESTEL analysis, the different external
factors can be identified which will be suitable for improving their growth and it can
be beneficial in starting a new business venture in a new foreign country successfully
after the analysis of the country.
Political- It includes the different policies related to government and other
foreign trade policies. Social- It is inclusive of the different aspects such as age or
the rate of interests. Economic- It is considering the economic growth along with the
rate of interest which affects the growth of company. Environmental- There are
changes in the weather that can affect growth of company negatively. Legal- There
are different laws related to discrimination which affects growth prospects of the
company (Huizingh and McCarthy 2015). Technological- There are different
technology related incentives which can be beneficial for the growth of company
(Aithal 2017).
For instance- The PESTEL Analysis of Woolworths will be suitable for
identifying the external environment aspects. Political- There is huge political
instability and political pressure against the duopolistic nature of the retail market.
Economic- There is inclusion of the different kinds of regulations in the retail paving
way for the different new entrants and the lackluster spending among the different
individuals is affecting business of retailers like Woolworths. Social- There is poor
relationship between the different suppliers which affects the growth of the company
and it is causing due to the change in the business culture (Woolworths.com.au
2019). Technological- There is implementation of SAP based system related to
merchandising which will be beneficial in improving efficiency which will be suitable
for growth. Environmental- There are huge investments which are being made by
Woolworths and sustaining the effectiveness. Legal- There is legal battle which is
affecting growth of Woolworths negatively (Woolworths.com.au 2019).

4COMPETITIVE STRATEGY
Ansoff Matrix
It is considered to be the strategic development tool and framework which
help the different executives along with the senior managers of the company to
devise the different strategies for the future growth which will be effective (Ansoff et
al. 2018). As the part of the long-term strategic planning initiative, it will be suitable
for analyzing the possible growth strategies for the company which will be beneficial
in understanding the current position of the company that will be effective for them in
understanding the future prospects which will be successful for them in identifying
and achieving the goals appropriately (Gurcaylilar-Yenidogan and Aksoy 2018).
Product Development- It means creation of the different new products for
serving the existing market in a much more suitable manner. Market Development-
It is inclusive of the different kinds of new products and services to the completely
new market and it will be beneficial for the growth of the company (Fozer et al.
2017). Diversification- It is considered as the radical form of growth and it is
creation of new product for the completely new market. Market Penetration- It is
considered as the aspect which attempts to increase the market share with the
proper utilization of the current products and services and it will be increasing their
efforts to lure the different customers away from the various competitors (Dawes
2018).
For instance- The Ansoff Matrix of Woolworths will be beneficial in
understanding the situation effectively. Market Development- Woolworths is trying
to shift their focus on the new market through introduction of new distribution
channels. Product Development- The company is trying to develop the different
products other than grocery which can be beneficial in replacing the existing strategy
of retailers. Diversification- Through the respective aspect, there has been
introduction of horizontal diversification through which Woolworths have been
successful in managing the sales store programme effectively (Woolworths.com.au
2019). Market Penetration- In the market penetration, Woolworths have been
successful in introducing the different products and services which has helped them
in understanding the different requirements of the customers and improve their

5COMPETITIVE STRATEGY
efficacy suitably and it has enhanced them in managing effectiveness and gain
competitiveness.

6COMPETITIVE STRATEGY
Conclusion
Therefore, it can be inferred that the strategic development tools play a vital
role in improving the business-related operations in a successful manner. It can be
seen that with the help of the strategic planning and development tools, it will be
suitable for improving the business operations based on the analysis of the internal
and external business environment. It is the useful tool which can be beneficial in
guiding the different day to day operations successfully which will be successful in
changing the different approaches while moving forward. The different tools of the
strategic development such as SWOT, PESTLE and Ansoff Matrix can be used for
identifying the various types of the threats or opportunities which will be suitable for
gaining competitive advantage in the market which is competitive and there are
different threats present. In such situations, the proper strategic planning can be the
most suitable approach which will be enhancing the growth prospects of the
company as it will be allowing the different agencies to keep proper pace with the
changing client needs, funding as well as program related policies. As achievement
of the goals play a vital role in the companies as it will be showcasing which the most
important priorities and it can be suitable for enhancing the growth prospects of the
company and gain competitiveness in the market and become more profitable. With
the help of the different instances of Apple, Woolworths and other companies, the
different importance of strategic development tools has been successful in creating a
huge impact on the growth of the companies and it has been successful in
enhancing their growth strategies successfully without much issues.

7COMPETITIVE STRATEGY
References
Aithal, P.S., 2017. Industry Analysis–The First Step in Business Management
Scholarly Research. International Journal of Case Studies in Business, IT and
Education (IJCSBE), 1(1), pp.1-13.
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2018.
Implanting strategic management. Springer.
Apple.com 2019 Apple (online) Retrieved from https://www.apple.com/ [Accessed on
21st August 2019]
Dawes, J., 2018. The Ansoff Matrix: A Legendary Tool, But with Two Logical
Problems. But with Two Logical Problems (February 27, 2018).
Fozer, D., Sziraky, F.Z., Racz, L., Nagy, T., Tarjani, A.J., Toth, A.J., Haaz, E.,
Benko, T. and Mizsey, P., 2017. Life cycle, PESTLE and multi-criteria decision
analysis of CCS process alternatives. Journal of cleaner production, 147, pp.75-85.
Gurcaylilar-Yenidogan, T. and Aksoy, S., 2018. Applying Ansoff’S Growth Strategy
Matrix To Innovation Classification. International Journal of Innovation
Management, 22(04), p.1850039.
Huizingh, E. and McCarthy, K.J., 2015. The Innovation Portfolio Risk Matrix: An
Empirical Test. In ISPIM Conference Proceedings (p. 1). The International Society
for Professional Innovation Management (ISPIM).
Jiang, R., Mao, C., Hou, L., Wu, C. and Tan, J., 2018. A SWOT analysis for
promoting off-site construction under the backdrop of China’s new
urbanisation. Journal of cleaner production, 173, pp.225-234.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance
analysis based SWOT analysis. International Journal of Information
Management, 44, pp.194-203.
REZAEI, M., KHAVARIAN, A. and GHAFURZADEH, M., 2016. The Development of
Industry in Yazd Province by Using the SOAR Strategic Framework and ANSOFF
Matrix.

8COMPETITIVE STRATEGY
Woolworths.com.au 2019 Woolworths Supermarket - Buy Groceries Online (online)
Retrieved from https://www.woolworths.com.au/ [Accessed on 21st August 2019]
Yin, N., 2016. Application of AHP-Ansoff matrix analysis in business diversification:
The case of Evergrande Group. In MATEC Web of Conferences (Vol. 44, p. 01006).
EDP Sciences.