Competitive Strategy: Resource Based View, PESTEL Analysis and Porter’s Five Forces Model

This essay discusses the use of three major competitive strategies: resource based view strategy, PESTEL analysis and Porter’s five forces model. The strategies are applied to industries such as Dominos pizza, Coca cola and Commonwealth bank to identify future risks and develop tactful ways to overcome obstacles.

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Introduction
A well defined competitive strategy offers guide to the business to perform efficiently in
both the external and internal environment. Strategy is highly important for the business to
identify the opportunities and trends in the future (Wolf and Floyd 2017). The broader changes in
the market such as political, technological and consumer changes are identified. Moreover, help
the business to develop and modify to suit these future changes. The essay describes the use of
three major competitive strategies. This includes resource based view strategy, PESTEL analysis
and Porter’s five forces model. In industries such as Dominos pizza, Coca cola and
Commonwealth bank the strategies will be applied. These strategies identify the future risks and
helps in overcoming obstacles by developing tactful ways.
These important three strategy tools will be used to analyze different industry and obtain
maximum result. The competitive strategy helps in creating a vision that provides adequate
direction for the overall organization. It enables the company to generate a competitive
advantage and also understand the important mission and vision of the organization (Albert and
Grzeda 2015). In the recent times, the organization must have effective analytical tools to
identify the factors that would affect the business environment. In addition to this, competitive
advantages enable an organization to make proper planning and coordination among their
departments.
Resource based view Strategy
Resource based view is a method of obtaining competitive advantage by reviewing
effectively its internal organization (Bromiley and Rau 2016). An organization’s performance is

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mostly known by its resources, which is at its disposal. These resources are helpful in facilitating
a distinct competitive advantage. Dominos pizza has a broad customer base and market. The
company uses strategic positioning procedures to rapidly develop and become a great influence
on the strategic thinking procedure.
Domino’s pizza’s core competencies enable the firm to gain competitive advantage in
various markets, where they can benefit from the products. The material resources of the
organization are its food resources, which is very easy for the competitors to achieve
(Dominos.co.in. 2018). This therefore increases the suppliers bargaining power. The
organization has well trained and highly talented human resources to support their franchised
training services. The other intangible resources include its largest business scale and consumer
oriented corporate culture.
With the help of resource based view, Domino’s pizza low price strategy is still the viable
strategy to gain profit in the present fierce market condition. Through product differentiation the
company will be able to obtain maximum growth rate in the future (Jensen 2016). Dominos pizza
had enhanced its core competencies to increase the company’s intangible assets that are difficult
for its rival to copy.
PESTEL analysis
PESTEL analysis is a competitive strategic tool that is mainly used to acknowledge all
the macro environmental forces that faces an organization (Gans and Ryall 2017). The factors
include political, economical, technological, social, environmental and legal factors. All the
firms that successful monitors and respond to existing changes in the macro environment enables
to create competitive advantage and differentiate itself from the competition.

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Coco cola uses PESTEL analysis to analyze its business environment. Political factors if
coco cola involves the regulation of the government. The products of Coca-cola are currently at
the mercy of FDA. Changes in the established laws prevent the organization from distributing
drinks. Economical factors plays a major role in assessing the company’s worth and value (Shah
et al. 2015). Coca-cola has updated and changes its techniques to handle their products and
customers by creating new innovative flavors to accommodate its customers. Coca-cola is
generally distributed in majority of countries. The company successfully meets the demands of
their customers.
The technological factor of the company has ensured it in delivering the products easily
with quality product development. The company has also used social media technology to
connect with their audiences. Coca cola retains all the legal rights that are concerned with the
business by including future and past products that is developed through a patented process
(Coca-colacompany.com. 2018). Coca-cola has to adhere with various environmental laws to
manufacture their products. Coca-cola is primarily affected by water accessibility and any
change in the environmental condition creates a negative impact on the business.
Porter’s five forces Model
Porter’s five forces model is a strategic management tool that is used in analyzing their
industry and clearly understanding the underlying levers for industry profitability. Porter’s five
forces are used to clearly understand the five competitive forces that influence the business
profitability and developing strategy to enhance the Commonwealth Bank of Australia. Threats
of new entrants put a huge pressure on the Australia common wealth bank. Through reduced

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costs, lower pricing strategy and helping the customers with new value based propositions, the
bank safeguard its competitive edge (Commbank.com.au. 2018).
The bargaining power of suppliers leads to decrease the banks margin in Australia.
Powerful suppliers in the banking sectors use its negotiating power to obtain increased prices
from the firms. Moreover, it leads to lower down the bank’s profitability. The bargaining powers
of the buyers are also very high. Commonwealth bank can survive the threats from its substitute
products by increasing the customer’s switching costs (Goncharuk 2016). There is huge rivalry
among the competitors and it takes a toll on the Commonwealth bank long term goals and
profitability.
Conclusion
The competitive tools are highly beneficial to analyze the competitive environment and
get a clear knowledge about the business environment. PESTEL analysis is useful in identifying
the environmental condition of Coca-cola. PESTEL analysis is very simple and involves cross-
functional expertise and skills. It enables the organization to exploit and identify new
opportunities. The process should be conducted in a continuous manner for being effective and
the organization does not make this investment.
Resource based view of Dominos pizza helps the firm to acknowledge its own strength
instead of focusing on the organization’s external condition. This strategy enabled the firm to
utilize its resources and therefore adding value to the firm. The Porter’s five forces model is used
to ascertain the effectiveness of Common wealth bank. The model helps the management to
assess and evaluate their current market environment. Though Porter’s five forces model have
difficulty in integrating the market complexities as the non-market forces are not considered.

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References
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Commbank.com.au. 2018. Personal banking including accounts, credit cards and home loans -
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