Competitive Strategy Analysis 2022

Running head: COMPETITIVE STRATEGY
COMPETITIVE STRATEGY
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COMPETITIVE STRATEGY1
Introduction
The business world uses several tools and techniques in order to realize and gain
substantial gains from strategic analysis and planning. These tools as well as analyses aid
businesses to understand the business setting in which they execute operations and introduce
plans, which align with specific environment. According to Uhl and Gollenia (2016), strategic
management mechanisms facilitate business organizations to predict opportunities. Strategic
planning involves consideration of likely internal and external impacts on organization and
subsequently mapping out relevant approach to manage the impacts. From marketing
perspective, strategists take into consideration consumer needs, competitive determinants along
with organizational advantages. Major business enterprises across the world have succeeded in
possible way by using strategic tools and techniques (França et al. 2017). Amongst principal
strategy development tools are PESTEL, Five Forces, SWOT, ANSOFF and Resource Based
view. The following essay aims to analyse strategy developmental tools and explain each of the
model with relevant examples.
Discussion
Resource based View (RBV) is known as a model which considers resources as
imperative to superior organizational performance. Such a model mainly focuses on the model of
difficult-to-imitate features of organization as sources of improved performance and competitive
benefits. According to Bocken, Rana and Short (2015), resources, which cannot be readily
shifted or procured which necessitate an extended learning curve or fundamental change in the
organization climatic and cultural, have greater potential to be exceptional to the organization,
consequently more challenging to imitate by market rivalries. RBV further focuses on value

COMPETITIVE STRATEGY2
creation to create critical competitiveness within the industry. However, Tukker and Tischner
(2017) have found that to sustain competition within sector, organization requires to gather
provision to acquire sustainable competitive advantage (SCA) thus having improved
performance in prolonged term in comparison to its competitors. According to Noe et al. (2017),
resource must accomplish VRIN criterion to offer competitive advantage as well as sustainable
action. Amazon’s key competencies are based on organizational competencies as well as
business resources, which accomplish all VRIN criteria namely value, rarity, inimitability and
organization. Reports reveal that Amazon’s resources and capacities attain one or some of these
criteria, but aid its business expansion. Amazon’s non-core competencies incorporate
organization’s increasing physical stores. This competence is valuable and further offers
competitive benefits, but it is imitable and not exceptional, while accounting major organizations
such as Wal-Mart, which also has robust brick and mortar presences. Furthermore, Amazon’s
increasing level of diversity of e-commerce services is appreciated in relation to its contributing
revenue sources (Mangematin, Ravarini and Sharkey Scott 2017). These sources are not
intermittent and inimitable, as other technology business enterprises offer similar services.
Additionally, according to VRIO analysis, the growing portfolio of private label goods and
increasing revenues of Amazon expands the company’s services and intensifies market presence
as well as elevates revenues. Chang (2016) has cited examples of Amazon Basics is known as
private label which facilitates the organization to directly rival against other e-commerce and
non-online sellers. Although, private labelling has been effective to business, however it is not
rare and not imitable. Moreover, small businesses can apply private labelling. Moreover, VRIO
analysis exemplifies that these resources upsurges Amazon’s competitive returns, however does
not serve as a primary competency, since other organizations tend to develop similar