Competitive Strategy

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

COMPETITIVE STRATEGY1
Introduction
Strategic development tools are defined as the strategic planning which is
fundamental for creation along with running the business in an appropriate manner. It is
described as the game plan which helps in setting specific goals along with objectives and the
companies are able to change in response to the shifting dynamics of market. The different
tools which will be analyzed in the essay includes SWOT, PESTEL, Ansoff’s matrix along
with Porter’s Five Forces Model Analysis.
Porter’s Five Forces Model Analysis
As per the respective model, there are different five forces which is helpful in
determining the competitive attractiveness as well as intensity of the market. It helps in the
overall identification of where the power lies in the business-related situation. It is helpful in
understanding whether the new products or the services are potentially profitable for the
business in the competitive market (Ansoff et al. 2018).
Supplier Power- It is the assessment of how easy it is for the different suppliers to
drive up the prices of the products. It is inclusive of uniqueness of products along with
switching cost from one supplier to other.
Bargaining Power of Buyers- It is defined as the assessment of analysing how easy it
is for the different buyers to drive the different prices down. The different aspects include
importance of individual buyer in the organization.
Competitive Rivalry- It is the other driver wherein capability and number of
competitors are analyzed in market. There can be different kinds of competitors present in the
market which will be offering undifferentiated products which can reduce attractiveness.

COMPETITIVE STRATEGY2
Threat of Substitution- It is inclusive of increasing the likelihood of the different
customers switching to different alternatives as they can receive similar products from them
at lower prices.
Threat of New Entrants- The different profitable markets attract new entrants which
will be eroding profitability and it will be leading to decline in the rate of competitiveness.
For instance- Porter’s Five Forces Model Analysis of Walmart
Competitive Rivalry
High aggressiveness of other retail firms is strong force
Huge variety of retail firms is strong force (Walmart.com 2019)
Bargaining Power of Buyers
Huge Diversity of consumers is weak force
Large number of customers is weak force
Bargaining Power or Suppliers
High availability of supply is weak force (Walmart.com 2019)
Tough competition among different suppliers is weak force
Threat of Substitutes
High cost of substitutes is weak force
Low range of substitutes is weak force
Threat of New Entrants