Your contribution can guide someone’s learning journey. Share your
documents today.
COMPETITIVE STRATEGY INDIVIDUAL ESSAY 3 COMPETITIVE STRATEGY DEVELOPMENT TOOLS AND HOW THEY ARE USED IN BUSINESS: PESTEL MODEL; INPUT AND OUTPUT MODEL; AND PORTER’S FIVE FORCES MODEL DRAFT Table of Contents 1.0 1.0 INTRODUCTION....................................................................................................................2
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
2.0 EVALUATE PESTEL MODEL (EXTERNAL ENVIRONMENT ANALYSIS)...............3 3.0 INPUT AND OUTPUT MODEL.........................................................................................5 4.0 PORTER’S FIVE (5) FORCES MODEL.............................................................................5 5.0 CONCLUSION.........................................................................................................................8 6.0 REFERENCES.........................................................................................................................9 1.0 INTRODUCTION Competitive Strategies means a plan of action which is been drawn by a particular company to order to achieve competition advantages in a competitive market industry (Kaya 2015). The main aim is to create a position in the market place and hence to increase ROI (Return on Investment).In presentreportthe Woolworths Supermarket retail company is the example for applying three different tools and techniques to compete with the market rivals:
PESTEL, Porters Five Forces model and theInput/Output model.These are some of the marketing tools which can affect business growth, help to analyse competitors, and aid to achieve targets by setting strategies to overcome competitors. 2.0 EVALUATE PESTEL MODEL (EXTERNAL ENVIRONMENT ANALYSIS) PESTEL analysis is a tool which is used by the company to monitor the external environment in an effective manner and through this tool business can compete against its rivals byusingdifferentmethodsandtechniquesandalsoinnovatingtheproductsorservice (Woolworths Limited SWOT & PESTLE analysis 2019). Hence through PESTEL analysis Woolworth Ltd. faced many challenges in the competitive macro environment.Factors which have impacted this company are discussed below: Political factor: This factor is not controllable and it is affecting the business in massive way (Mathooko and Ogutu 2015). So this company must operate in Food and Staples Retailing by following government rules and regulations and made dynamic changes into the external distribution environment. Hence the company diversified the risk in various countries through which its retailing stores gained success. Before entering into the market place Woolworth Company make sure that they follow all the legal ways to expand its business and all government rules should be followed in appropriate manner. Examples:Woolworth should follow legal requirements concerning corruption while operating in Food and Staples retailing area, this very much necessary while providing such products and services to the customer of Australia. Trade regulations and tariffs should be favourable for trading partners, so in this sector company should work according to the rules and regulation of government of countries whichever place they are trading. Economicfactor:Micro-environmentalfactorsinclude,savingrates,andforeign exchange rates which affect demand and investment in an economy. Such factors have certain advantages and disadvantages which affect the growth of the business. (Mkude and Wimmer 2015). Example:The major factors that sometimes hinders the self interest of an organisation expanding in that market are lacklustre spending of consumers specially in retail marketplace, and with easy regulations in retail sectorenable new market entrants e.g. Woolworththat create hazardous effects for them to remain always competitive in marketplace.
Social Factor:The impact of social factors includes the cultures and traditions which played important role in Woolworth Ltd. This affected the customer as well as market message for Food & Staples retailing sector. So the leaders of this company should analyse PESTEL for effective growth. Example:While entering into new marketplace organisation have to face the effects of a poor relationship with the suppliers – and for that they have to change in their organisational culture, which takes huge cost and time. In respect ofWoolworthLtd they build various kinds of strategies and tactics to lessen down the effects and get optimum level of outputs. Technological factor:This is an important part of the PESTEL because through technology various distributions are done. Transportation need to be very effective by the company so that customer gets the product or service at right place and at correct time. Example:ThelatestfeaturesintroducedbyWoolworthLtd.isonlineshopping applications through which customer can avail the benefits. Environmental and Legal factor:These two factors affect company growth as well as reduce the sale of products or services (Ryńca 2016) due to new market entrants and new business which affect other competitors. So this company’s leaders can analyse PESTEL in such way that they can survive in the competitive market place Example:an organisation while entering into the new marketplace have to invest their resources in energy efficiency and carbon initiatives so that they build consumer loyalty in context of Woolworth Ltd. There are some recommendations that they have to follow strict and mandatory codes by NFF. 3.0 INPUT AND OUTPUT MODEL It is mainly a strategy development tool which is considered as a functional graph that furtherevaluatesoutputs,inputsandotherrequiredprocessingwhichisrequiredin transformation of output and input. With the help of this model organisation can effectively able to evaluate their input in a combined level along with transformation. It is important to acquire necessary required output. This will effectively aid organisation to ensure their smooth activities before and after the transformation process.This model refers to interdependence between social and economic sectors. This may have a positive effect on the economy. Hence this company is also working effectively for growth and more over it has expanded its business online and now is
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
planning to open other stores in Australia so the company require input and out model which the leaders can apply to labour and other products required by the company which aid to increase the work.By using that model, organisation can evaluate the flow of money in an economy that directly impacts on their business and their major activities by connecting with other industries (What is the Input-Output Model? 2019) Example:In context of Woolworths supermarket, organisation can undertake their strategy development model as to further address and issues that are being faced by company in the process of hiring. It has been further analyses that, large number of technical people get effectively hired in organisation during last past one year. It turns out to a complex process as organisation face many problmes in training and recruitment, as it is costly as well as time consuming. Thus, it HR team of organisation decises to have group of individuals together along withall-encompassing experience of hiring fresh candidates, those who can effectively able to frame input-output model for the purpose of hiring. Mentioned below there is a model which is developed by them: llustration1: Input Output Model For Hiring Process In WOOLWORTHS (Source: Input Output Model For Hiring Process In WOOLWORTHS,2019) 4.0 PORTER’S FIVE (5) FORCES MODEL Porter Five force analysis is a strategical as well as a analytical tools which is largely considered by large base of organizations all around the globe in order to effectively attain
comprehensibility. This strategy include development tool such as total of 5 forces. In this, 3 forces concern to threat of competition, horizontal rivalry, threat of substitutions and threat of new entrants in a business organization. While if it is considered with other 2 forces, it pertain to bargainingpowerofcustomersandbargainingpowerofsuppliers.Withtheeffective undertaking of all these forces a business organization can effectively able to frame decisions in context with expansion, growth, new product launch etc.In addition with this, it will help company to evaluate attractive and unattractive forces in within a business sector. Thus, with the regular undertaking of these forces company can effectively able to evaluate change that takes place within these 5 forces as to these may lead towards affecting productivity of company. Example:Taking the example of Woolworths, it can be said that the management of this company carries out Porter 5 force analysis before taking key decisions such as enhancing the product portfolio or using diversification. Thecompetitive rivalry within retail sector is high which helps the management of Woolworths to come up with effective strategies that have the ability to gain the attention of population of Australia. Furthermore,threat of new entrants within the sector is lowwhich provides the management of this chain supermarket with the idea that it can launch new and innovative products in market place at reasonable prices to enhance its profitability and sales. Thethreat of substitutes in retail sector is immensely highwhich helps the entity to realize that there is a need to constantly update the product features and segments to cater to demands of people desirably. Further it has been evaluated that,bargaining power of buyers within retail sector is high,It offer assistance to Woolworths to undertake use of well efficient strategies as to make economic purchase of those commodities that are offered in supermarket. While,bargaining power of suppliers is lowfor Woolworths as this company is mainly a large scale organisation. Thus, they have option to make a shift towards other vendor in order to acquisition for other relatively necessary materials. Therefore, with the assistance of this evaluation company can effectively able to apply their core competencies strategical along with sustainable business model in order to increase their overall rate of revenue and profit. 5.0 CONCLUSION As per the above statements it can be concluded that all the work which is needed to include by the mangers of the company for effective growth and even by these models company can survive competitive market in effective manner hence the main impact of the company
which need to be made in appropriate way.While organisation aimed to expand in other market they have to conduct proper research and development that helps to get important insights about market and its related factors for taking important decisions. In order to by using various tools and techniques organisation can be able to get desirable outcomes to remain always competitive in marketplace.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
6.0 REFERENCES Books and Journals Kaya,N.,2015.Corporateentrepreneurship,genericcompetitivestrategies,andfirm performance in small and medium-sized enterprises.Procedia-Social and Behavioral Sciences. 207.pp.662-668. Mathooko, F. M. and Ogutu, M., 2015. Porter’s five competitive forces framework and other factors that influence the choice of response strategies adopted by public universities in Kenya.International Journal of Educational Management.29(3). pp.334-354. Mkude,C.G.andWimmer,M.A.,2015.Studyinginterdependenciesofe-government challenges in Tanzania along a PESTEL analysis. Mohajan, H., 2017. An analysis on BCG Growth sharing matrix. Ryńca, R., 2016. Using the idea of the boston consulting group matrix in managing a university.Journal of Positive Management.7(1). pp.70-86. Song, J., Sun, Y. and Jin, L., 2017. PESTEL analysis of the development of the waste-to-energy incinerationindustryinChina.RenewableandSustainableEnergyReviews.80. pp.276-289. Wolf, L., Stidham, A.W. and Ross, R., 2015. Predictors of stress and coping strategies of US accelerated vs. generic baccalaureate nursing students: An embedded mixed methods study.Nurse Education Today.35(1). pp.201-205. Zhao, Z. Y., Zuo, J., W u, P. H., Yan, H. and Zillante, G., 2016. Competitiveness assessment of the biomass power generation industry in China: A five forces model study.Renewable Energy.89.pp.144-153. Online Porter's Generic Strategies. 2019. [Online]. Available Through: <https://www.mindtools.com/pages/article/newSTR_82.htm>. Expanding Your Company Globally? Here Are 3 Strategies You Should Consider 2018 [Online] Availablethrough<https://blog.btrax.com/what-should-your-companys-international- expansion-strategy-be/>. WhatistheInput-OutputModel?2019[Online]Availablethrough. <https://kb.economicmodeling.com/what-is-the-input-output-model/>. WoolworthsLimitedSWOT&PESTLEanalysis2019[Online]Availablethrough. <https://www.swotandpestle.com/woolworths-limited/>.