Analyzing Strategic Tools for Competitive Strategy

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

1COMPETITIVE STRATEGY
Introduction
The essay throws light on analysing the importance of the different strategic tools
which plays an essential role in providing sense of direction and outlines the different
measurable goals as well. The different kinds of tools which will be analyzed in the essay
includes SWOT, PESTEL, Ansoff Matrix and Porter’s Five Forces Model which will be
beneficial in identifying the different opportunities and threats that can be faced by the
organizations.
SWOT Analysis
SWOT Analysis is defined as the framework which is used by the different
organizations in evaluating the competitive position of the company along with developing
strategic planning accurately (Noe et al. 2017). Moreover, the analysis is designed in order to
facilitate the fact-based look at the different strengths and weaknesses of the companies or the
industry.
Strengths- It helps in describing the aspects in which the organizations excel and
separates them from other competitors present in the market. It is inclusive of strong brand
image, unique kind of technology which will be beneficial for the company to gain
competitive advantage (Kerzner 2019).
Weaknesses- It is the second aspect wherein it stops the companies from performing
at an optimum level and these are considered to be the areas wherein organizations need
growth as to remain competitive.
Opportunities- It refers to the different external factors which are favourable and
provides the organizations with competitive advantage such as increase in sales and market
share of the organization (Jessop, Nielsen and Pedersen 2016).

2COMPETITIVE STRATEGY
Threats- It refers to the different factors which have the potential to harm the
organization such as increase in competition in the market or tight labour supply which can
affect the growth of the company (Hanson et al. 2016).
For instance- SWOT Analysis of Apple
Strengths
Innovative type of products
Leadership Position
Weaknesses
Difficulty in matching expectations of customers
Incompatibility
Opportunities
Technological Advancements (Apple.com.au 2019)
Growing Market
Threats
Huge competition in the market
Market Penetration by other brands
PESTEL Analysis
It is defined as the framework which is used in order to analyse along with monitor
the macro-environmental factors which can create profound impact on the performance of the
organizations both in positive or negative manner. It is the tool which is useful while starting

3COMPETITIVE STRATEGY
a new business in a specific country as it will provide the details of the external environment
(Gupta et al. 2016).
Political Aspects- It includes the different factors related to degree of intervention of
government which can affect the entire industry. It is inclusive of policies related to
government, political instability or stability that can create huge impact on the industry or the
country (Farinha, Ferreira and Gouveia 2016).
Economic Aspects- It is considered as the different determinants of the performance
of the economy and the different factors include the economic growth, rate of inflation along
with rate of unemployment in the economy as it affects the way the companies try to price
their products as well as services (Dombrowski et al. 2016).
Social Factors- It is defined as the dimension of the general environment such as
demographic factors and customs as well as values in which companies operates. Moreover,
the different factors include emphasis on safety, consciousness among individuals for health.
Technological Factors- It includes the different factors which are related to
innovation which may affect the operations of the entire industry and it can be favourable or
unfavourable for the market. The technological awareness plays a major role in managing the
different aspects in an appropriate manner (Díaz-Chao, Sainz-González and Torrent-Sellens,
2016).
Legal Factors- It is inclusive of the different kinds of laws along with regulations that
can affect the growth of the companies or the industry in which the companies operates. The
different laws include discrimination laws, patent laws along with health and safety laws
which can be required to trade ethically (Bharati and Chaudhury 2015).