Competitive Strategies: A Comparative Analysis of Four Frameworks

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COMPETITIVE STRATEGY
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Contents
Introduction..............................................................................................................................................3
PESTLE analysis (Australia Amcor)...................................................................................................4
Theoretical Framework......................................................................................................................4
Five Forces (Alumina limited)..............................................................................................................5
Theoretical Framework......................................................................................................................5
SWOT analysis (BHP)............................................................................................................................6
Theoretical framework.......................................................................................................................6
Resource-based view model (Canva)................................................................................................7
Theoretical framework.......................................................................................................................7
Conclusion...............................................................................................................................................8
References...............................................................................................................................................9
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Introduction
The strategy tools are the resources which help to modify and analyse the resources
need to build the strategy. The tools help to determine and understand the right path
and direction for accessing the strategies as per the requirement of the organisation. If
the strategy is not able to fulfil the organisational requirements then it derives from
being an unsuccessful strategy. This report contains four models of the strategies which
are PESTEL analysis, Porter Five forces model, SWOT analysis and resource-based
view. This includes the framework and real-life examples of these models.
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PESTLE analysis (Australia Amcor)
Theoretical Framework
PESTLE model includes 6 main features on which it works and helps the organisation to
understand the implementation of their working. The organisation of Australia Amcor
adapted this model to define their strategies (Aithal, 2016). The tools of the model are:
Environmental factors Application
Political It refers to all the aspects of the
organisation which interlinks to the political
or government authority. This is necessary
for the organisations to fulfil the
requirements of the government also
Environmental The economic factors play a very
important role to know the current stage of
the and also the company. The
macroeconomic consist the management
demands like taxation policies,
government expenditure and so on
(Pestle, et. al., 2014).
Social The social aspect also plays a very
important role in nowadays society as the
current crowd goes with the social
environment only. The social appearance
will help also helps to get popular for any
of the organisation.
Technological Technology is the much-needed tool to
compete with the updated world. The
technologies are very useful to interact
with the people as well as this is
necessary to deal with some other aspects
of the organisation.
Environmental The market is getting changed day by day
and it takes very less time so to get
updated with the changes this is
necessary to have the information about
the whole environment.
Legal The legal aspects deal with all the legal
aspects. This is most necessary for any of
the organisation to know about their rights
and limitations (Aithal, 2017).
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Five Forces (Alumina limited)
Theoretical Framework
It helps to analyses the operations which can help to make the strategies for the
organisational structure. The organisation Alumina limited applied this model for their
organisational strategies. The forces in includes are:
Rivalry
To make a benchmark for the other organisations this is necessary to understand the
current competition as to compete with the real world the most necessary thing is to
understand the competition (Aithal, et. al., 2017).
Power of Supplier
The supply is the essential need of the market and for the organisation, this is
necessary to understand the supplier as these suppliers are those who build the
organisational structure more effective.
Power of Buyer
The productivity of the organisation can only be determined via the buyers or the
customers. This is necessary for the organisation to understand and determine the
needs of the buyer so that they can fulfil their requirements (Maliki, et. al., 2012).
Threat of substitution
The substitution of the products can affect development in a negative way. As the
different substitutions are available so this is necessary for the organisation to
determine their substitute competitors.
The threat of New Entry
The current world is full of competition and it is very difficult for the existing companies
to survive in the current competitive world and in this large competition the most
common threat organisation have the threat of new competitor.
Practical Implication
This analysis helps to determine the composition and current stage of the organisation.
This determination helps to improve and manage the strategies for future growth
(Pestle, et. al., 2014).
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SWOT analysis (BHP)
Theoretical framework
SWOT analysis is a comprehensive matrix to analyse both the internal and external
factors affecting an organisation. S & W stands for strength and weakness of the
company whereas O & T stands opportunities and threat which external features of the
organisation. The organisation BHP applied this model to determine there working
culture (Maliki, et. al., 2012).
Strength
Strength is the positive essentials of the
organisation it includes the parameters of
the organisation which impacts positively.
Weakness
Weakness may be in the management or
in the operational efficiency which affects
the business in a negative manner. This
can include project failure or any
improvement which is required for the
organisation (Aithal, et. al., 2017).
Opportunity
These are the external factors which help
to enhance the organisational structure.
This factor can include the programs which
can be used to company growth and it also
can be denoted as the market value of the
organisation.
Threat
The threat is the external factors which
impact the organisation in a negative way
and it cannot be removed but good
strategies can help to control these
threats. The factors which are included in
these threats are the real-time competitors
or any lose company have to face (Pestle,
et. al., 2014).
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Resource-based view model (Canva)
Theoretical framework
The resource view model is a model which helps to analyse the competitive
implementations of the organisation as these model helps to determine the internal
competition of the organisation. The organisation Canva used this model to make their
organisational strategies. The resources which it includes are:
Tangible assets
Tangible assets refer to the physical resources company have. The resources which are
included in this are machinery or land and so on. These assets are the first thing which
can be in mind of competitors (Aithal, 2016).
Intangible assets
Apart from the tangible resources, all resources are the intangible resources and these
are the most important resources for the organisational structure as these are the
resources which fulfil the essential needs of the organisation (Aithal, et. al., 2017).
Heterogeneous
This includes the internal skills and capabilities the organisation has. The employment
of the organisation can be the only factor which makes it different from the others as
they provide the organisation with some advantages which make the organisation
different from others.
Immobile
This includes the resources that are immobile as the resources are not movable and
need to be followed by the organisation in a stable structure (Maliki, et. al., 2012).
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Conclusion
This is concluded from the report that the strategies are very necessary to implement
organisational growth. The report also concluded about different strategies and
frameworks which helps to understand derive the strategies. The case study informed
some models the models which discussed in the report are PESTEL analysis, Porter
Five forces model, SWOT analysis and resource-based view. Thus, the report helped
to understand a different model.
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References
 Aithal, P.S., 2016. Study on ABCD analysis technique for business models,
business strategies, operating concepts & business systems. International
Journal in Management and Social Science, 4(1).
 Aithal, P.S., 2017. ABCD Analysis as Research Methodology in Company Case
Studies. International Journal of Management, Technology, and Social Sciences
(IJMTS), 2(2), pp.40-54.
 Aithal, P.S., Shailashree, V. and Kumar, P.M., 2016. Application of ABCD
Analysis Framework on Private University System in India. International Journal
of Management Sciences and Business Research, 5(4), pp.159-170.
 Maliki, A.B., Jahrin, M.E.B., Kamarulzaman, N.S.B., Ali, N.B.M., Azhar, N.I.B.M.
and Chew, B.C., 2012. PESTLE analysis on Bieichi technology—technology
which turns plastic waste into fuels.
 Pestle, W.J., Crowley, B.E. and Weirauch, M.T., 2014. Quantifying inter-
laboratory variability in stable isotope analysis of ancient skeletal remains. PLoS
one, 9(7), p.e102844.
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