Competitive Strategy Analysis

Running head: COMPETITIVE STRATEGY ANALYSIS
COMPETITIVE STRATEGY ANALYSIS
Name of the Student
Name of the University
Author Note

1COMPETITIVE STRATEGY ANALYSIS
Strategy Model 1
Porter’s Generic Strategies
According to Grant (2016), Porter’s Generic strategies are the strategies that helps in
describing the various different ways by means of which a firm can able to achieve the
development of its competitive edge over the other within its industry. It is to note that there
are a total of three types of generic strategies and they are- differentiation strategy, cost
leadership strategy and focus strategy. Firms can easily implement one or more of these
strategies at the place for conducting their business operations in the competitive market.
Application
One of the best example of companies that make use of Porter’s generic strategies is
Walmart. The company is using the cost leadership strategy. This strategy is basically used
for attaining a low costs products and giving the customers more within a set product price.
This process of low cost product production is regarded as important for influencing the ways
in which the company conducts its business operations (Barney 2015). The worldwide
notable growth of Walmart is on the basis of the revenues attained by the companies by
means of proper sales of the products and services. It increases its products sale with the help
of low pricing compared to its present rivals in the market. Implementation of this strategy is
regarded as effective for Walmart in achieving its desired goals and objectives in terms of
increasing the revenues of the company (Bertozzi, Ali and Gui 2017).
Strategy Model 2
PESTEL Framework
The PESTEL framework is used by the businesses to analyse the external factors that
influence the operations of the businesses. It stands for Political factors, Economic factors,

2COMPETITIVE STRATEGY ANALYSIS
Social factors, Technological factors, Legal factors and Environmental factors. According to
Aithal (2017), the external environment is also called the macro environment and the macro
environment of contemporary businesses could be analysed in detailed way by the help of
implementing the PESTEL framework. It is also very effective for the companies that plan
for international expansions.
Application
Near about all the big companies make use of PESTEL analysis. One of the best to
consider is of Woolworths Pvt. Ltd., a multinational retail company. The company use this
model for gaining an idea of the various external factors that can influence its business
strategies (Kim, Rim and Lee 2019). For example,
Political- Policy makers and the other different nonn-government organisations are
the major stakeholders of Woolworths. The government legislation influence the product
prices and services.
Economic- The rate of inflation and that of exchanges influence the policies and legal
regulations developed by Woolworths.
Social- Change in demographics and the gender role along with customers varied
expectations influence the product portfolio of Woolworths.
Technological- The Company is influenced by the various different technological
disruptions taking place within the industry.
Legal- Intellectual Property Rights, for example, influence the company negatively if
it fails to develop the protective policies.