Competitive Strategy: PESTLE, Five Forces and SWOT Analysis

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

1COMPETITIVE STRATEGY
Table of Contents
Introduction......................................................................................................................................2
PESTLE analysis.............................................................................................................................2
Five Forces analysis.........................................................................................................................3
SWOT analysis................................................................................................................................4
Conclusion.......................................................................................................................................5
Reference List..................................................................................................................................7

2COMPETITIVE STRATEGY
Introduction
This essay will be dealing with the competitive strategy tools that are required within an
organization so that they can function in a proper manner and identify the threats and
opportunities that are present in the market. It will help the organization in understanding the
competitors that are present in the market, which can affect the internal and the external
environment of the particular company (Team 2013). The PESTLE analysis and the Five Forces
analysis are used to identify the risks that are present in the external environment, which may
affect the smooth operations present within the company. The SWOT analysis on the other hand
is used to identify the opportunities and the threats that are present within the organization. These
tools will help Woolworths in gaining a better insight regarding the factors that affect their
business so that they can function in a proper manner (Ho 2014).
PESTLE analysis
This tool is used in keeping a track of the external environment in which the company is
operating so that they can have a clear idea of the market before they are launching a new
product or a service in the market. The analysis is a mnemonic that stands for Political,
Economic, Social, Technological, Legal and Environmental. The political factors help in
determining the influence of the government within the economy of the industry. The tax and
fiscal policies that are adopted by the government may affect the overall strategy of the business
within the industry (Del Marmol and Feys 2015). The economic aspect enables the company in
understanding its performances, which has a long-term effect on the company when it is
impacted directly on the organization. The rate of inflation and the foreign exchange rates
influence the economic performance of the company in a direct manner that needs to be analyzed
(Newton 2014).
The social factors help in understanding the cultural trends, population size and the
demographic of the area so that the company can manufacture or sell the products that will be
consumed by the local masses. The technological factors refer to the level of automation along
with the research and development that needs to be done so that it can help in gaining a
competitive advantage in the market (Ho 2014). The legal factors need to be assessed so that the