Competitive Strategy: RBV, PESTLE Analysis and Porter Five Force Models

Competitive strategy

Competitive strategy
Strategy tools
There are various strategy development tools that are used by the companies in the present era.
By considering these tools, the management emphasizes on controlling the entire business
operations. In this paper, the discussion will be made on three strategy development tools which
assist the companies in accomplishing the set goals and objectives. The tools on which the
discussion will be made are Resource based view, PESTLE analysis and Porter five force
models. It is examined that strategic planning is essential for the company as it provides direction
to manage the routine activities and also analyzes the progress and changing approach to move
forward among the competitors present in the market.
Resource based view
The resource based view is considered as the tool that emphasizes on the internal environment of
company. It is an approach that assists in attaining competitive advantage that emerged in 1980s
and 1990s. RBV model has a major role in assisting the organization to accomplish the
organizational performance. This model emphasizes on two types of resources such as tangible
and intangible. There are various tangible assets such as land, buildings and machinery and there
are also intangible assets which are not physical presence but it can be owned by the company.
The intangible assets of the company are brand reputation and trademarks. Resource based view
evaluates and interprets the internal resources of the organization and focuses on resources and
capabilities at the time of formulating the strategy to attain sustainable competitive advantage
(Lioukas, Reuer and Zollo, 2016).
Resources can be known as inputs that enable the companies to control the functions. Internal
resources and capabilities helps to make the strategic choices that are made by the companies at
the time of competing in the external business world. Competitive advantage takes place only
when there is situation of resource heterogeneity and resource immobility. It can be said that this
tool is useful for the companies in maintaining their brand image and resources in the large
market area. RBV is also the tool that assists in boost the performance and this tool also shows
the right direction to be considered by the management. It is important for the companies to
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Competitive strategy
emphasize on keeping their eye on the resources assist in giving tough competition to the other
competitors present in the market (Kellermanns et al., 2016).
Example of Toyota
Toyota utilizes its resources and capabilities by differentiating itself from the competitors present
such as General Motors. The company has also build good brand image among the customers
and due to this value creating among the customers has been boosted. Toyota also emphasized on
the lean production system which is difficult to be imitated and assimilated. Lean production
system has helped the company in attaining efficiency and also consistency in offering products
at low cost. The high tech performance features has considered by the company to compete with
the luxury car competitors. Toyota hybrid cars have created the new markets that has added
value for the customers. But on the other hand, there are many competitors who are putting their
best efforts to achieve success in relation to Toyota. Therefore, it can be stated that by focusing
on RBV tool the company has enhanced the customer base and also focused on attaining growth
among the competitors present in the market (Sodhi, 2015).
Pestle analysis
One of the famous strategy developmental tools is Pestle analysis which is used by the
companies to control the external environment. It is considered as the analytical tool that is
considered by the firms with the aim of planning the operations. This is also known as the
strategic framework that influences the operations of the business on external level. There are
various macro environment aspects that affect the strategic planning such as new rules, change in
tax policies and also the trade barriers (Jarzabkowski and Kaplan, 2015). By having in-depth
knowledge of the external environment, the organizations can boost the opportunities and
minimize the threats in the company. In this tool there are six factors such as political, economic,
legal, social, technological and environmental and these factors assist in controlling the business
operations (Shabanova et al., 2015).
Example of Nike
In the market of US, the organization has to emphasize on the low interest rates as it assist in
maintaining the large market share. At the time of selling the products, Nike focuses on the tax
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