Competitive Strategy: Analysis of SWOT, PESTLE, Porter's Five Forces and Generic Strategies Model

Running head: COMPETITIVE STRATEGY
COMPETITIVE STRATEGY
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Introduction
The strategy development based tools that are used by different organizations are
mainly based on the analysis of the environment in which it operates in an effective manner.
The internal environment of organizations is examined with the help of SWOT framework.
The external environment of the company is thereby examined with the help of PESTLE
framework. The industry of operations of an organization has been examined with the help of
Porter’s five forces based framework. The essay will be based on the analysis of the different
frameworks that are used by different organizations in the industry (Frynas and Mellahi
2015).
Analysis of SWOT framework
SWOT framework is mainly used for the purpose of the analysis of internal
environment of different companies. Different aspects of an organization which form a part
of the analysis are strengths, weaknesses, opportunities and threats.
Strengths – The strengths of the company form an important part of the internal
environment which can play a significant role in analysing its position in the industry. The
demands of different services and products that are provided to the consumers play a
significant role in analysing the strengths.
Weaknesses – The weaknesses of organizations are based on the analysis of the usage
of the financial resources in a weak manner. The reasons behind the loss of revenues to the
competitors of the company are a major part of the weakness. The loss of shareholders due to
organizational operations plays an important part in the analysis (Grant 2016).
Opportunities – This factor is mainly based on the ways by which the companies are
able to analyse the expansion based possibilities in the future. The new areas of the market
and the expansion based capabilities of the company are a part of the opportunities.
Threats- The levels of competition in the industry and low prices of similar types of
products that are offered to the customers by other companies are a part of the threats. The
control of the company over its competitors is also an important part of threat analysis
(Hassan, Sistani and Raju 2014).
Example – The SWOT analysis of Woolworths can provide the management with a
proper view of the internal environment of the company. The analysts can thereby gain a

2COMPETITIVE STRATEGY
view of the operations of the company in order to improve its position in the market in an
effective manner.
Analysis of PESTLE Framework
The PESTLE framework plays an important role in the ways by which the factors of
the external environment are able to affect the operations of an organization. The external
factors are thereby analysed with the help of diverse factors which include, political factors,
economic factors, social factors, technological factors, legal factors and environmental
factors.
Political factors – The political environment of a country plays a significant role in
the ways by which the organization operates in the industry. The regulations that are
developed by the government play a significant role in the ways by which the company can
develop its policies as well. The trade based tariffs, the fiscal policies developed by the
government can also affect the company (Yu 2017).
Economic factors – These are important determinants based on the economic
performance of the countries in which they operate in an effective manner. The company is
affected in an effective manner with the help of the economic conditions of the country. The
rise which has been experienced in the inflation rates of the country can play a significant
role in the operations of the company (Kolb 2016).
Social factors – The social factors are thereby grounded on the ways by which
customers are able to affect the profitability of the company in an effective manner. The
change in demands of the consumers in different countries can also play an significant role in
the revenues and profitability of the company.
Technological factors – The changes that have taken place in technologies that are
used by the companies can also play an important part in their profitability. The automation
based activities of the countries are able to speed up the processes of the company in an
effective manner (Porter and Heppelmann 2014).
Legal factors – The laws and regulations that are developed in the country have
played an important role in the ways by which the companies can create their position in the
environment. The legal factors are thereby able to affect the formation of regulations by the
company.