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

Running head: COMPETITIVE STRATEGY
COMPETITIVE STRATEGY
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1COMPETITIVE STRATEGY
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

2COMPETITIVE STRATEGY
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.