Assignment on Competitive Strategy | 1

Running Head: COMPETITIVE STRATEGY 0
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COMPETITIVE STRATEGY

COMPETITIVE STRATEGY 1
Table of Contents
Introduction................................................................................................................................2
PESTLE Framework..................................................................................................................2
SWOT Explanation....................................................................................................................3
PORTER FIVE FORCE MODEL.............................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

COMPETITIVE STRATEGY 2
Introduction
Ever business enterprises have some collection of strategic tools help in the growth of their
business firm. These tools also help the business firm to build blueprint of future scenarios
benefit the enterprise in removing many uncertainties in the strategic plan. Due to dynamic
and competitive business environment, it is important for a firm to better comprehend the
implications of these competitive strategic tools and their associated applications (Sirmon et
al, 2011). Zara is selected to know the importance of these tool in practical terms for the
organisation. It is one of the leading Spanish apparel retailer founded in 1975. It is also a
leading brand of the Inditex (Lopez and Fan 2009). The three tools that are being selected and
applied on Zara to understand its competitive strategy includes PESTLE framework, Swot
analysis and Porter Five Forces.
PESTLE Framework
In business environment of Zara, there is presence of various external variables that impact
the growth and performance of the operational functioning of the company. To identify these
variables from all perspectives, management of ZARA requires PESTLE framework that
views for political, economic, social, technological, legal and environmental factors. Using
this framework benefit the company in the development of long term strategy and also help in
market development i.e. with giving appropriate response to the needs of overseas market and
new market segments (Yuksel, 2012). On small scale, it also helps the company to recognise
changing consumer trends and preferences in the dynamic business environment. The
PESTLE framework is presented and applied on Zara like below -
1. Political factors – In Europe, the free trade agreements help in boosting ZARA UK
sales as it allows goods to move freely amid European nations with no restrictions
(Thompson and McLarney, 2017). Political regulations of every country in which
Zara is operating also impacts firm sustainability and performance. For instance,
owner of Zara had paid fine Brazil as there workers were provided bad working
environments. Hence, Zara has a international existence, it is necessary for