Competitive Strategy

Running head: COMPETITIVE STRATEGY
Competitive Strategy
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COMPETITIVE STRATEGY
1
Introduction
In the current scenario of business, there are different types of opportunities
and threats that influences growth of the business both in a positive or negative
manner. In such scenarios, the strategy development is known as strategic planning,
which is known as the fundamental aspect for creating as well as running the
business. It is treated as the game plan which sets specific goals along with
objectives and it is capable of changing in respect to the shifting dynamics of the
market (Vahdati, Nejad and Shahsiah 2018). There are different strategy
development tools which includes SWOT, PESTLE and Porter’s Generic Strategies
which will be acting as the game plan and help in understanding the situation of the
environment in which the companies are operating their business. Additionally, as
commented by Veselovsky et al. (2015), the proper formulation of the strategy
development tools is defined as process of shaping appropriate courses of action
that is suitable in achieving the organizational goals and accomplish the
organizational purpose. The clarifying of the vision is the most appropriate aspect
that needs to be understood by the organizations for formulating strategy and
evaluate the same appropriately. Moreover, the main aim of the essay is to
understand the role of the respective strategy development tools in meeting the
objectives of the companies and enhance the business-related objectives in a
suitable manner.

COMPETITIVE STRATEGY
2
SWOT Analysis
Through the implementation of SWOT analysis, it is suitable for identifying the
different kinds of strengths as well as weaknesses along with understanding the
broader perspectives of the threats and opportunities. It is effective in development
of the fuller awareness of the respective situation which will be suitable for decision-
making prospects and strategic related planning as well (Stavroulakis and Riza
2015). In the initial stages, SWOT analysis was being incorporated by the different
businesses, however presently, it is used by the community health as well as
development, education and personal growth.
Strengths- There can be different strengths which include high morale of
employees along with increase in the market share. Weaknesses- The different
weaknesses comprise of lack of the system of strategic management along with
legal suits which are not resolved (Salavou 2015). Opportunities- There can be
different opportunities related to consciousness among the different individuals which
will be beneficial for the company to incorporate such changes appropriately.
Threats- There can increased level of competition that can be a huge threat which
will be influencing the growth of the companies in contrast to other competitors.
For instance- SWOT analysis of Tesco can be suitable for understanding the
situation effectively. Strengths- The company has won number of awards which is
suitable for the retail kind of excellence and it helps in solving the different needs of
customers. Weaknesses- There are few subsidiaries of the company which are not
performing well that can affect growth of Tesco. Opportunities- Tesco has various
opportunities in the retail label market which will be enhancing their growth and there
can be inclusion of strategic alliances which will be suitable. Threats- There is high
level of the pressure from the different stakeholders which affects the cost basis of
Tesco (Tesco.com 2019). There is high competition in retail market that affects the
growth of the company.