Competitive Strategy: Tools for Analyzing Business Environment

Running head: Competitive strategy
Competitive Strategy

Competitive strategy
Table of Contents
Introduction................................................................................................................................1
Porter five force model...............................................................................................................1
Practical example of LIDL.....................................................................................................2
SWOT Analysis.........................................................................................................................2
Example of Amazon...............................................................................................................3
PESTLE analysis........................................................................................................................3
Example of Apple...................................................................................................................3
Resource Based View (RBV).....................................................................................................4
Example of Coca-Cola...........................................................................................................4
Conclusion..................................................................................................................................4
References..................................................................................................................................5
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Competitive strategy
Introduction
In order to ensure the effectiveness of the business processes, it has become must for the
organizations to take help of the strategy development tools. There are various tools which
ensures the same and helps in identifying and analyzing the business environment. In this
essay, the discussion will be based on 4 important strategic tools and how businesses can gain
competitive advantage by devising effective strategies. The internal and the external
environment analysis will be done using SWOT and PESTLE tool respectively. Porter’s five
forces will be discussing the comprehensive analysis of the business environment and the
effective utilization of the available resource will be discussed using a tool called Resource
based view.
Porter five force model
This is one of the tools which come under the category of external factor. This tool analyzes
the overall external environment and also focus is given in-depth analysis of the factors
which are prevailing in the market. In this tool there are various factor which are considered
for in-depth analysis of the market. The factors related to bargaining power of customers,
suppliers, threat of new entrants, threat of substitution and rivalries. So, these are considered
as the important factors on which the company should emphasize so that growth can be
attained in the market (Garrette, Phelps and Sibony, 2018).
(Source: Research Methodology, 2018).
Practical example of LIDL
a) Bargaining power of the suppliers
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