Competitive Strategy: Porter's Five Forces, Resource-based View, and PESTLE Analysis

Running head: Competitive strategy
Competitive strategy

Competitive strategy
At the time of conducting the activities of the company, it is important to focus on the
management tools so that activities can be conducted be conducted in a right direction. It is seen
that management tools can help the company to execute and control all aspect of the
management activities. It also helps to ensure that the assigned tasks are completed on time. So,
in this paper, the emphasis will be given on Porter five force models, Resource-based view, and
PESTLE which helps the company to undertake each and every task in a proper manner. These
tools help the company to develop strategies so that goals and objectives can be accomplished
effectively.
Five force analysis
This management tool helps to analyze the competition prevailing in the market. In this
factor, there are five factors threat of entrants, a power of suppliers, a power of buyers, and
rivalry against the competitors and threat of substitute (E. Dobbs, 2014). This tool helps to focus
on the overall performance and helps to enhance the productivity level in an effective manner. It
is seen that five force analysis of the company helps to evaluate the market environment. The
changes that are made are done by considering the five force factor of the company (Block et al.,
2015). It is seen that at the time of implementing the strategies which will be beneficial for the
company in attaining competitive advantage the company will use five force analyses.
One of the practical examples that can be taken into consideration is concerned with
Woolworth. It is seen that threat of substitute is high as the consumers have many choices to
purchase the products. Also, the rivalry against the competitors is high as the competitors are
many in the same industry. If the focus is given on power of the suppliers it is seen that it is low
as there are many stores from which the customers can purchase the products easily. Power of
buyer is taken into consideration so that it can be easy to offer products which enhance the
satisfaction level. The threat of entrants is high and also the new entry is entering the market.
Five force analyses are evaluated by sales department so that activities can be conducted
accordingly (Grant, 2016).
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