Competitive Strategy

Competitive Strategy

Contents
PESTLE Analysis...........................................................................................................................................3
Political....................................................................................................................................................3
Economic.................................................................................................................................................3
Social.......................................................................................................................................................3
Technological...........................................................................................................................................3
Legal........................................................................................................................................................3
Environmental.........................................................................................................................................3
SWOT Analysis.............................................................................................................................................4
Strengths.................................................................................................................................................4
Weaknesses.............................................................................................................................................4
Opportunities..........................................................................................................................................4
Threats.....................................................................................................................................................4
Five Forces Analysis.....................................................................................................................................5
Competitive Rivalry.................................................................................................................................5
Supplier Power........................................................................................................................................5
Buyer Power............................................................................................................................................5
Threat of substitutes...............................................................................................................................5
Threat of new entrants............................................................................................................................5
Resource- Based views................................................................................................................................5
Resources................................................................................................................................................5
The VRIN characteristics..........................................................................................................................6
Valuable...............................................................................................................................................6
Rare.....................................................................................................................................................6
Inimitable............................................................................................................................................6
Non- Substitutable...............................................................................................................................6
References-.................................................................................................................................................6

Strategy development tools are very helpful in strategy formulation and implementation process. An
organization has to find out different areas where it has to focus and to create strategies in accordance
to improve the same. There are many ways or tools that assist a business in developing strategies.
Many big organizations are using these tools and are successful in today’s market. Some of the
strategies are-
PESTLE Analysis
Pestle analysis is also known as PEST analysis and it is related to marketing principles. It is used by many
companies to track the environment at the time of launching any project or product.
Political- It includes factors that actually determine the impact of government policies, rules and
regulation in a certain industry. It includes Fiscal policies, taxation policies and trade tariffs.
Economic- Economic factors directly create impact on a company on a long term basis. These factors
include interest rates, repo rates and FDI.
Social- Such factors is related to the social environment in which organization operates and it includes
trends, taste and preferences, population and demographics.
Technological- It includes the innovations in technology happened due to research, automation and
technological advancement (Yoon, 2010).
Legal- Legal factors are both internal and external nature. In every country, there are different laws
that impact business operations like consumer laws, labor laws and employee safety laws.
Environmental- It includes the factors that are available in the surrounding and impact business
like change in climate, location and weather.
BMW is a car manufacturer that produces high- performance cars and sells all over the world. It uses
PESTLE analysis as a strategic development tool. This organization is impacted by certain political
influences like policies, political corruptions and regulations. It finds out that there are many tariffs and
currency fluctuations that can easily impact the business. It has many social media followers and it
boosts the sales of the company as people know the brand image in the market.