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Competitive Strategy - Sample Assignment

   

Added on  2021-06-14

9 Pages1845 Words48 Views
Running head: COMPETITIVE STRATEGY0Competitive Strategy
Competitive Strategy - Sample Assignment_1
COMPETITIVE STRATEGY1The importance of strategy development tools has increased between enterprise, and thesenior-level executives use these tools to analyse the market trends and factors that affectbusiness to create effective strategies. This essay will discuss three tools which are used bycorporations to develop strategies for their business. The first tools are SWOT analysis whichwas first introduced in the 1960s, and it assists management in developing strategies based oninternal and external factors. The second tool is five forces model which is used by anenterprise for determining attractiveness or unattractiveness of an industry. Finally, this essaywill evaluate Resource-based view which is an effective tool for analysing internal strengthsto generate a competitive advantage in the industry. Examples of different corporations willbe discussed to understand each model.SWOT AnalysisThe SWOT analysis is a strategic development tool which assists enterprises in identifyingtheir internet weaknesses and strengths and external threats and opportunities. The model wasdeveloped in the 1960s for creating business strategies, and it has remained unchangedthrough time (Bull et al., 2016). The model is based on both internet and external factors thataffect a company’s operations. The internal factors create both strengths and weaknesses of acorporation which include business strategies, the effectiveness of leadership, positiveworking culture, talented employees, and others. On the other hand, external factors createopportunities or threats for a corporation which assist them in expanding their business.External opportunities include lower tax rates, interest rates, flexible government regulations,and others. External threats include high competition, changing customer demands, change intechnologies, and others. This tool is used by senior and middle-level management in anorganisation while developing business strategies. Managers can assess internet strengths andweaknesses and align them with external opportunities and threats to develop highly effectivebusiness strategies.
Competitive Strategy - Sample Assignment_2
COMPETITIVE STRATEGY2Figure 1: SWOT Framework(Source: Business To You, 2017)Example: McDonald’s uses SWOT analysis while developing future business strategies.McDonald's is a fast food restaurant, and its strengths include positive brand reputationacross the globe and operations situated in more than 36,000 locations (Rosenberg, 2018).The company has a strong product offering, and it changes its menu to suit the demand of itscustomers. The corporation has established an efficient production chain which reduces thetime taken between booking and delivery of the order. The major weaknesses of the companyinclude difficulty in finding prime location in major cities, weak product development,slowed revenue and declining market share. The opportunities for McDonald's includeexpansion in emerging markets, growing dining out market, joint venture with small retailers,diversification of product offering and increased focus on corporate social responsibility. Thethreats faced by McDonald's include high competition from old and new fast foodrestaurants, changing demographics due to increasing awareness regarding healthy food,economic recession, fluctuation in foreign exchange rates and downturn of the economy(Gerhardt, Hazen and Lewis, 2014). Based on these factors, the company uses its strengthswhile developing business strategies to gain a competitive advantage over others.
Competitive Strategy - Sample Assignment_3

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