Competitive Strategy

COMPETITIVE STRATEGY

Contents
SWOT analysis.......................................................................................................... 3
PESTLE Analysis....................................................................................................... 4
Porter five forces model................................................................................................ 7
VRIO framework........................................................................................................ 7
References................................................................................................................ 9

Introduction
This report brings out a discussion on different frameworks used to achieve the competitive
strategy. This report has SWOT analysis, porter`s five forces model, Pestle analysis and
VRIO analysis.
SWOT analysis
SWOT analysis is a technique, which examines the internal condition of the organisation by
identifying the weaknesses and strengths. At the same time, it identifies and examines the
external condition through opportunities and threats. This strategic tool is used to answer
several questions so that it can useful to identify its competitive advantage. It explains the
extent to which internal environment of the organisation comply with external environment
that is directly expressed in the strategic fit.
SWOT analysis IKEA
Strengths Weaknesses
In terms of evaluating the brand value,
IKEA has 46th position in the market.
The crucial potential of IKEA lies in its
products because of its designs
It is observed that as per the customer’s
views, the company derives highest ROI
(return on investment) especially that
amount which they spend on their products.
IKEA faces many problems when it
operates in different countries. Recently, the
organisation faces corruption problems in
Russia. One of the weakness of the
organisation is that it has to keep the cost
minimum, which sometimes indicates that it
does not high quality.
Opportunities Threats
Growth in environmental-friendly objects With increasing competition, organisations
have started coping with products of IKEA.

enhances the growth of the organisation.
Nations with low capita income level also
started preferring the IKEA products.
It suffers from fear of copycats which
reduce its revenue.
SWOT Analysis of Wesfarmers
Strengths Weaknesses
Wesfarmers is one of the largest player in
the private sector in two countries New
Zealand and Australia.
The company has an extensive network of
numerous stores in order to tap the market
Not every business interest is profiteering
equally.
Totally dependent on local suppliers
Opportunities Threats
The organisation can grab the opportunity
of growing segment
It should look to diversify into number of
sectors
Huge competition in the retail industry,
which includes Myer, Woolworths, and
other retail markets.
Non-performing diversified portfolio
PESTLE Analysis
Pestle analysis is a technique through which any organisation analyse and keep a check on
the macro-environmental factors, which profoundly effect on the performance of the
company. The components of this framework includes P as political factor, E stands for
economic factor, S stands for social factors, T stands for technological factors, L for legal