Management Competitive Advantage Analysis 2022

Management
Competitive advantage
Student’s name
8/21/2019

Competitive advantage 1
Introduction
Strategic development tools highlights about the various tools, which are based on the industry
good practices that meets the varying needs in the strategy development process. Along with this,
these tools also help the business houses to create or generate value for their customers and also
to capture value with the sustainable advantage over the other players in the game. Moreover, it
also helps in aligning the various activities with the organization towards the common goals,
which mainly supports a winning business strategy. Hence, various strategic tools which the
companies follows are- Pestle analysis, porters five force model, SWOT analysis , ansoff matrix
which helps in knowing about the internal as well as external environment (Eden, & Ackermann,
2013).
Pestle analysis-
Pest analysis mainly denotes, about the political, economic, socio-cultural and technological
aspect. As each of these factors helps in defining about the business internal as well as external
environment and along with this, which all other factors affect the organizational health.
Starbucks one of the well-known coffee shops, with its largest coffee brand globally it is the
most successful brand. It is famous because of its excellent quality and great leadership in the
market. Hence, it is seen that they have more focus over quality as well as ethics. They are also
well known for the it’s excellent customers services and the pleasant environment which makes
them feel differentiate it from its competitors (Taecharungroj, 2017).
Political factor has a major impact on every business and its profitability. It mainly helps in
determining the environment of the nation, which mainly links it with the economic and political
stability. The constancy of the political situation majorly affects the steadiness of the supply
chain. Moreover, administrative disruption also affects the day-to-day procedures along with the
deals and effectiveness of the businesses. As in this, the contractors of the Starbucks are
scattered in numerous parts and they also deals with the political pressures. Hence, it is seen that
political conditions of the various nations are majorly affected due to the political circumstances
(Simon, 2011).

Competitive advantage 2
Economic factor also majorly highlights about the buying ability of the clienteles. And how this
factor affects the brand transactions, effectiveness is affected. Along with this, It is also seen that
the affects the cost of raw substantial and labor cost as well. All these aspects are totally linked
with the success of the Starbucks in the long run. Hence, the better economic conditions, leads to
the higher profitability of the company (Luthans, & Doh, 2012).
Socio-culture factor highlights that Starbucks ecological impact, undertaking the climate
changes and stimulating others as well to do the same. By using the ecological, socially and
economically responsible guidelines of upkeep global, Starbucks is able to procurement the
coffee under “ Starbucks shared planet”. Along with this, changing customers preferences also
affects the sale of coffee and the business of Starbucks.
Technological factor also mainly factors the organizational profitability of the business.
Technology also enables the performance across all the functions, which made the good use of
info technology all across the company to drive performance. Moreover, Starbucks also
introduced in terms of technology its card, which attracts lot of customers and made them quick
visitors. They also use more of the biodegradable material for recycling. Other than this, they
also doing online delivery of their coffee and much more (Chua, & Banerjee, 2013).
Ansoff matrix
Ansoff matrix mainly states about the strategic development tool that provides the framework to
helps the senior members of the company to devise its strategies for the future growth. It mainly
comprises of 4 basic factors such as market penetration strategy, market development, product
development and lastly, Diversification.
Market penetration of Wal-Mart mainly highlights about the selling of more goods and
services to the company’s current markets on discounts and related offers. In addition to it, Wal-
Mart also enhances its online presence to recover its client’s access to its products selling.
Hence, such kind of access donates to growth of the business’s transactions revenue. As, it is
seen that Wal-Mart mainly applies the low price market penetration strategy in order to achieve
more through the cost leadership strategy.