Competitive Strategy: Tools for Attaining Competitive Advantage

This paper discusses the various tools that companies can use to attain competitive advantage, including five force analysis, resource based view analysis, PESTLE analysis, and SWOT analysis. Examples from companies such as Honda, Toyota, and Flipkart are provided to illustrate the application of these tools. The paper emphasizes the importance of strategic planning and management in achieving success in the competitive market.

Competitive strategy

Competitive Strategy
Development tools
It can be seen that it is necessary to focus on the strategy tools so that the companies can attain
goals and objectives. The strategic tool can assist the companies to achieve large market share
and also provide direction to the employees. In this entire paper the discussion will be made on
the tools that can help to attain competitive advantage in an effective manner.
Five force analysis
The main objective of this tool is to consider the industry attractiveness so that it can be simple
to attain profits. It is also known as the famous strategic tool that can help to taken into
consideration the strategies in context to entire activities of the company. With the help of this
tool it can be simple to analyze the rivalries which exist in the business. This tool also focuses on
boosting the acts which help in controlling the organizational activities (Mukherjee, 2018).
Through this tool it can be simple to attain positive results in context to the overall productivity
level of the company. By focusing on the five forces it can be considered that proper analysis
should be made so that external environment can be maintained (Garrette, Phelps and Sibony,
2018).
Woolworth’s Example
It can be analyzed that the rate of substitution is high if emphasis is given on the customer base
and it has been seen that customer gets attracted towards the products and services who offer
proper services and products. In the recent era, the rivalry rate is high as there are many
companies who are providing same product in the market. The power of supplier is also low as
there are many other shops that are providing same products to the customers. Power of buyer is
also high as there are many buyers present in the competitive market and also the products are
purchased on the regular basis. Also the new threat of market is high as there are many small
companies in the market. By considering this tool it has been seen that sales department has the
major role which will enhance the market share of the company.
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Competitive Strategy
Resource based view analysis
This is known as the management tool that emphasizes on the overall market situation. This tool
is taken into consideration to emphasize on considering the overall competitive advantage. Also,
it has been seen that in this model there are various internal resources like assets and capabilities
(Hitt, Xu and Carnes, 2016).
The focus is also given on the department off sales by taking into consideration the strategic
assets. By taking into consideration this tool it has been seen that emphasis is given on the
strategic assets. Also the main emphasis is given on the resources that can help to maintain the
level of competition in the market. This tool take into consideration overall management of the
activities so that performance level can be maintained in the competitive market (Friis, Holmgren
and Eskildsen, 2016).
In reference to this model it can be stated that there are many attributes that should be taken into
consideration so that competition can be maintained in the market. Also the emphasis is given on
the tangible and intangible resources so that activities of the company can be managed (Harding,
2017).
Example of Honda
Honda is one of the largest companies that emphasis on enhancing the satisfaction level of the
customers. It has been seen that in this model product differentiation is taken into consideration
in context to the competitors present in the market. It has been seen that if proper services are
offered then it can be simple to maintain the competition prevailing in the market. Ford also
focuses on high tech technology which is necessary so that competition level can be maintained.
The emphasis is also given on the process of learning and also on the up gradation of the
resources and capabilities so that large market share can be grabbed.
PESTLE Analysis
This tool is considered as the important tool that helps the company to compete in the
competitive market. Pestle analysis is mainly for external evaluation and for strategic planning. It
has been seen that there are various macro environmental aspects that focuses on the
organizational activities. With the help of this tool it can be easy to control the operations of the
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Competitive Strategy
company and also positive impact can be seen on the image of the company (Shatskaya,
Samarina and Nekhorosheva, 2016).
There are many factors on which focus will be given so that activities can be managed in a
proper manner. Through this tool organizational change can also be considered so that planning
can be done in a proper manner. The market situation can be improved by considering this tool
as it helps to manage the entire operations of the company.
By emphasizing on this tool market can be analyzed in a proper way. It also offers correct
information to the companies by taking into consideration the effective strategies. Policies of the
company are also taken into consideration so that managers can take into consideration the
process of managing the activities.
Example of Toyota
Political factor focuses on considering the rules and regulations in an effective manner. The
turnmoil in Europe has affected the present era in the market. In context to the economic factor it
has been seen that recession has taken place related to economy and also the employment rate is
taken into consideration. In context to the social factor it can be analyzed that the organization
has jumped into the huge production of electric vehicle in 2020. The environmental factor also
emphasize on boosting the next generation with the emission of Zero rate. Legal factor also
consider the legal compliance so that CSR activities can be considered effectively (Li, 2018).
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Competitive Strategy
SWOT Analysis
This tool is considered as the essential tool that can assist the company to focus on strength,
threat, weakness and opportunities. If company emphasizes on this tool then it can be seen that
growth can be attained in the market. There are also many benefits that can be taken into
consideration so that success can be attained in the competitive market. With the help of this
tool it can be simple for the organization to focus on different variants and also it helps to
manage the operations of the company. This tool also analyzes the strategic framework which is
implemented in the market. In reference to this tool it has been seen that profits can also be
taken into consideration which can also help to focus on the marketing strategies.
(Source: Business to you, 2018).
Example of Flip kart
The strength of the company is related with the good image in the market which is maintained by
the company. The weakness that can be seen is related to the supply chain of the company which
is ineffective. This also creates dissatisfaction among the people which can impact the image of
the company. The threat if related with the large companies operating their activities in the
market like Ebay and Flip kart.
The company has the opportunity to achieve competitive advantage in the prevailing market. The
company can grab the market opportunities by considering effective strategies which will
positively impact the activities of the company.
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Therefore, by emphasizing on the entire paper it can be seen that companies should emphasize
on considering the competitive tools so that it can be simple to attain growth and also to earn
more profits. These tools give impact on the activities of the company and also managers can
easily conduct or manage the entire operations of the company in an effective manner.
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References
Business to you., 2018.Frameworks. [Online]. Available at:
https://www.business-to-you.com/frameworks/. [Accessed on 9 Sep , 2018].
Friis, O., Holmgren, J. and Eskildsen, J.K., 2016. A strategy model–better performance through
improved strategy work. Journal of Modelling in Management, 11(3), pp.742-762.
Garrette, B., Phelps, C. and Sibony, O., 2018. Structure the Problem: Analytical Frameworks.
In Cracked it! (pp. 95-116). Palgrave Macmillan, Cham.
Harding, S., 2017. MBA management models. Routledge.
Hitt, M.A., Xu, K. and Carnes, C.M., 2016. Resource based theory in operations management
research. Journal of Operations Management, 41, pp.77-94.
Li, Z., 2018. Business Network Positioning Analysis of Toyota. American Journal of Industrial
and Business Management, 8(07), p.1693.
Mukherjee, I., 2018. Applying Porter’s Five Force Framework in Emerging Markets—Issues and
Recommendations. In Strategic Marketing Issues in Emerging Markets (pp. 307-316). Springer,
Singapore.
Shatskaya, E., Samarina, M. and Nekhorosheva, K., 2016. PESTEL analysis as a tool of strategic
analysis in international markets. Scope academic house b&m publishing, p.47.
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