Analyzing Competitive Strategy: SWOT, PESTEL, Porters Five Forces, and PROFIT Model

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

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COMPETITIVE STRATEGY
Introduction
The essay throws light on analysing different strategic tools which play a
major role in improving business operations and helping the companies to gain
competitive advantage in market. The different strategic tools which will be
discussed in the essay include SWOT, PESTEL, and Porters Five Forces Model
along with PORFIT model. Moreover, the strategic tools play a vital role in estimating
the opportunities as well as threats that can affect the overall effectiveness of the
business sand it will lead to loss for the business. Moreover, the framework is helpful
in prioritization of the different complex organizations and providing framework for
assessment of relative importance of the aspects.
SWOT Analysis
The SWOT analysis is defined as framework utilized to evaluate competitive
position of organization and development of strategic planning. Moreover, SWOT
analysis assesses external and internal factors which analyses the current and future
potential of companies (Salavou 2015).
Strengths- The strengths of the companies are the different resources along
with capabilities which can be utilised as the basis for the proper development of
competitive advantage (Noe et al. 2017). The different examples of strengths include
patents, strong brand image, good reputation among the different customers.
Weaknesses- It is inclusive of aspects which stops the organizations from
performing at an optimum level and they are the different areas wherein the business
requires improvement to remain competitive (Namada2018).

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COMPETITIVE STRATEGY
Opportunities-It includes variables that include opportunities and it will
showcase different current challenges faced by company and provide them different
approaches which will make them competitive (Mi 2015).
Threats- It is inclusive of the different external competition present in the
market that is beyond the control of the company and major issue faced by the
companies is rivalry and there can be different downturns in financial aspects which
can affect the overall effectiveness of the business. For instance- SWOT of
Samsung:
Strengths
It offers lots of models and it has huge brand recognition (Mi 2015)
Weaknesses
There are different issues relating to intense competition
Opportunities
Adopting new technologies which will improve the product
Threats
The market of mobile phones is dynamic and there can be failure (Mi 2015)
PESTEL Analysis
Political Factors-It is helpful in determining current position of various
political parties that can create huge influence on growth of the business both
positive or in a negative manner (Menonand Yao 2017).