Competitive Strategy: Analysis and Tools for Effective Decision Making

COMPETITIVE
STRATEGY

COMPETITIVE STRATEGY 1
Introduction
Strategic Management is the process of analysing, controlling and monitoring the
environment of the organisation. The process helps to analyse the environment so that the
organisation can adopt the effective strategies. There are different strategic tools that help to
analyse the environment in order to take the effective decision regarding strategies such as
SWOT Analysis, PESTLE Analysis, Ansoff Matrix, Porters generic strategic and many
others (Ansoff, Kipley, Lewis, Helm-Stevens, and Ansoff, 2019).
In this report, the discussion is made on the topic of strategic management. SWOT Analysis,
PESTLE Analysis, Porter’s generic strategy, and Porters Five Forces Framework are used to
analyse the environment and adopt the effective strategies. Wesfarmers has been taken into
consideration in order to analyse the environment.
Strategic Tools
SWOT Analysis
It is a strategic tool which is used to determine the internal and external factors that affects
the growth of the organisation. It analyse the environment in the four factors and these are
strength, weaknesses, opportunity and threat. Strength, weaknesses are the internal factors of
the organisation. Opportunity and threat are the external factor that affects the growth of the
organisation. It also helps in developing the plan to achieve in order to the objective of the
organisation (Mind Tools, 2018a).
SWOT Analysis of Wesfarmers
Strength
 Large market share in Australia and
Weaknesses
 Local Supplier also arises the

COMPETITIVE STRATEGY 2
New Zealand market
 Strong network with the supermarket
 Local Suppliers due to which the
operating cost is less and quality of
raw material is also effective
(Wesfarmers, 2018)
problems for the organisation related
to old material and common material
 Less presence at online platform
 The company has various
departments and it cannot earn the
profit in every business
Opportunity
 It has the opportunity to enter the
online market as it has less presence
in it.
 It can also enter the retail sector to
grow in the market with the help of
effective strategies
Threat
 Face the issue of non-performing
employees
 High level of competition among the
companies such as AECI, ORICA,
Kohl’s , Warrior, and many others
 Less demand due to low prices
PESTLE Analysis
PESTLE Analysis is also a strategic tool which helps to analyse the macro-environmental
factors of the organisation. It is beneficial for the organisation to take decision while entering
the new market. The factors analysed in six factors and these are political, environmental,
social, economic, technological and legal. This tool is applicable on the host country in order