Competitive Strategy Individual Essay

Added on - 18 Feb 2021

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COMPETITIVE STRATEGYINDIVIDUAL ESSAY3 COMPETITIVE STRATEGY DEVELOPMENT TOOLS AND HOW THEYARE USED IN BUSINESS: PESTEL MODEL; INPUT AND OUTPUT MODEL;AND PORTER’S FIVE FORCES MODELDRAFTTable of Contents1.01.0 INTRODUCTION....................................................................................................................2
2.0 EVALUATE PESTEL MODEL (EXTERNAL ENVIRONMENT ANALYSIS)...............33.0 INPUT AND OUTPUT MODEL.........................................................................................54.0 PORTER’S FIVE (5) FORCES MODEL.............................................................................55.0 CONCLUSION.........................................................................................................................86.0 REFERENCES.........................................................................................................................91.0 INTRODUCTIONCompetitive Strategies means a plan of action which is been drawn by a particularcompany to order to achieve competition advantages in a competitive market industry (Kaya2015). 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 theexample 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 themarketing tools which can affect business growth, help to analyse competitors, and aid toachieve 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 externalenvironment in an effective manner and through this tool business can compete against its rivalsby using different methods and techniques and also innovating the products or service(Woolworths Limited SWOT & PESTLE analysis 2019). Hence through PESTEL analysisWoolworth Ltd. faced many challenges in the competitive macro environment. Factors whichhave impacted this company are discussed below:Political factor: This factor is not controllable and it is affecting the business in massiveway (Mathooko and Ogutu 2015). So this company must operate in Food and Staples Retailingby following government rules and regulations and made dynamic changes into the externaldistribution environment. Hence the company diversified the risk in various countries throughwhich its retailing stores gained success. Before entering into the market place WoolworthCompany make sure that they follow all the legal ways to expand its business and all governmentrules should be followed in appropriate manner.Examples:Woolworth should follow legal requirements concerning corruption whileoperating in Food and Staples retailing area, this very much necessary while providing suchproducts and services to the customer of Australia. Trade regulations and tariffs should befavourable for trading partners, so in this sector company should work according to the rules andregulation of government of countries whichever place they are trading.Economic factor:Micro-environmental factors include, saving rates, and foreignexchange rates which affect demand and investment in an economy. Such factors have certainadvantages and disadvantages which affect the growth of the business. (Mkude and Wimmer2015).Example:The major factors that sometimes hinders the self interest of an organisationexpanding 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 createhazardous effects for them to remain always competitive in marketplace.
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