Development Tools for Competitive Strategy: Five Force Analysis, Resource Based View Analysis, PESTLE Analysis, and SWOT Analysis

Running head: Competitive strategy
Competitive strategy

Competitive strategy
Development tools
It has been analyzed that it is important to consider effective tools so that it can be simple
for the companies to achieve growth in competitive market. The tools help the company to show
proper direction to the employees. This paper will focus on the tools that will help to accomplish
goals and objectives.
Five force analysis
This tool focuses on the overall industry attractiveness that should be considered so that
profits can be attained. It is considered as the famous strategic tool that can assist in considering
the strategies related to business. Also, it has been seen that this tool helps to focus on the
rivalries present in the market. This tool also boosts the overall actions which should be
considered to manage the entire activities of the company. By considering this tool it can be
considered that improvisation can be made on the overall performance of the employees. It gives
positive impact on the employee’s productivity level and it is important to consider the strategies
so that it can be simple to manage the entire operations of the company. By considering the five
forces it has been that focus proper analysis can be made of the market environment (Mukherjee,
2018).
Figure 1
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Competitive strategy
(Source: Business to you, 2018)
Tesco Example
It has been seen that the substitution rate is high as the customer’s base is wide of the
company. In the present scenario, it has been analyzed that rivalry is high as there are many
firms who offer same products in the market. The power of suppliers is also low as there are
many outlets that are offering same products by the company. Power of buyers is also high as
buyers are many and they consume the products on the regular basis. As there are many small
units the threat of new entrants is high. Sales department have the major role in focusing on this
tool.
Resource based view analysis
This is considered as the management tool which focuses on considering the competitive
advantage. This tool is essential to be considered assist helps to emphasize on attaining the
competitive advantage. The company focuses on the entire resources so that advantage related to
competition can be achieved. The tool emphasizes on the internal resources like assets,
capabilities that should be attained (Harding, 2017).
The emphasis is given on the overall sales department by focusing on the strategic assets.
In this concept the resources are considered which can assist in minimizing the competition level
in the market. This tool also emphasize on controlling the performance of the organization.
In context to this model it has been seen that there are various attributes that should be
considered so that competitive advantage can be maintained. The resources which are considered
focus on tangible and intangible resources so that company can conduct the activities in effective
manner. The resources which are touched can be related to tangible resources and the resources
which cannot be seen are related with intangible resources. Tangible resources are machinery
and building and also intangible relates to the overall image of the company (Barbuto Jr, 2016).
Example of Ford
Ford is considered as the one of the biggest companies and it is necessary to focus on
maintaining the competitive advantage. It has been seen that company consider product
differentiation if comparison is made with the competitors. The competitive advantage can be
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