Competitive Strategy: Tools for Boosting Growth of Companies

This article discusses the importance of strategy development tools like SWOT analysis, Porter five force, Pestle analysis and Resource based view for boosting growth of companies. It includes examples of companies like Hersheys, Flipkart, Apple and Toyota. The article emphasizes on the need to consider both internal and external aspects to survive in the competitive market.

Running head: competitive strategy
Competitive strategy

Competitive strategy
Table of Contents
Introduction......................................................................................................................................1
Porte five forces...............................................................................................................................1
Example of HERSHEYS.............................................................................................................1
SWOT analysis................................................................................................................................2
Example of FLIPKART...............................................................................................................2
PESTLE ANALYSIS......................................................................................................................2
Example of APPLE......................................................................................................................3
Resource based view........................................................................................................................4
Example of Toyota.......................................................................................................................4
Conclusion.......................................................................................................................................4
References........................................................................................................................................5
Appendix..........................................................................................................................................6
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Competitive strategy
Introduction
It is important that organizations should focus on considering the strategy development tools so
that it can be easy to boost the overall outcome. So, the overall discussion will be based on the
strategic developmental tools which will boost growth of the company. The tools that will be
elaborated in this paper will be Swot analysis, Porter five force, Pestle analysis and Resource
based view.
Porte five forces
It can be seen that with the help of this tool it can be easy for the company to access the factors
related to suppliers, buyers, rivalries, new entrants and substitution of the products. It has been
seen that this tool is considered by the sales department as it can help in analyzing the actual
position of the company in the competitive market. It is necessary for the organizations to
emphasize on this tool as it can help in accomplishing goals and objectives. This tool is taken
into consideration by the top management of the company so that it can be easy to evaluate the
factors prevailing in the market (Moutinho and Phillips, 2018).
Example of HERSHEYS
 Bargaining power of the customers: It can be seen that the customers have the wide scope
to purchase the products from other sources. So, it can be stated that bargaining power of
the customers is high.
 Bargaining power of the Suppliers: It is also high as there are many suppliers in the
market who can offer the product in the market. So, it is also high in the competitive
market.
 Substitution rate: It can be easy to substitute the product as there are products which have
similar ingredients and also satisfy the same demand of the customer.
 High rivalries: The Company has the high rivalries as the same type of product is
available in the market which can enhance the satisfaction level of the customer. It is also
high as there are many competitors like Cadbury.
 Threat of new entrants: It is low as it is not possible for every business to invest a huge
capital in the overall activities of the company (Salavou, 2015).
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Competitive strategy
SWOT analysis
This tool helps to analyze the internal factor of the company. Also, with this tool it can be easy to
boost productivity in the workplace. It is the responsibility of the top management to emphasize
on this tool so that actual position can be taken into consideration. So, this tool is one of the
popular tool which helps in analyzing the factors related to strength, weakness, threats and
opportunities (Gupta and Mishra, 2016).
Example of FLIPKART
 Strength
The strength of the company is related with the large market share in the market. Also, on the
digital platform the company is one of the popular companies. So, this is one of the major
strength possessed by the company which boosts the overall sales in the market.
 Weakness
The weakness is related with ineffective distribution channel which is important to be maintained
so that it can be simple to deliver the products on time. It boosts the satisfaction level of the
customers towards the services in the market.
 Threats
The threat faced by the company is due to the competitors related to Amazon. This is one of the
companies who are offering similar types of products in the market. So, this can impact the
growth in the competitive market.
 Opportunities
The best strategy opportunity is related with reducing the overall cost of the products as it can
help in attracting the customers towards the products. With this it can be easy for the company to
maintain the large customer base in the competitive market.
PESTLE ANALYSIS
This is one of the famous tools which can be used to analyze the external factors prevailing in the
market. It can be seen that this tool helps to focus on political factor and economic factor which
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Competitive strategy
are important for the company to consider as it give insight of the overall market conditions.
Also, it is important to consider the factors like legal and environmental factor so that it can be
easy to plan the process of expansion (Grant, 2016).
Example of APPLE
 Political factor
It can be stated that company should focus on the stability of the economies so that it can be easy
to manage the overall activities. Also, the company is heavily dependent on the low cost
manufacturing in relation to china.
 Economic factor
The labor cost has been enhanced in China which has impacted the overall cost advantage of the
company and also there is increase in the exchange rates according to the US dollars.
 Social factor
The buying capacity of the customer has been changed so it is important to focus on managing
the overall prices. Latest models and design are considered by the company so that it can be easy
to attract the customers.
 Technological factor
The company is focusing on using the latest operating system so that demand of the customers
can meet. The latest technologies are important to be considered so that it can be easy to attract
the customers towards the service.
 Legal factor
There are various intellectual laws like software and music which are important to be considered
so that privacy and litigation can be maintained.
 Environmental factor
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Competitive strategy
The environmental issue faced by the company is related with disposing of the devices which
consist of lithium batteries. Initiative is considered by the company to introduce eco-friendly
products in the market so that growth can be attained (Khan, Alam and Alam, 2015).
Resource based view
It also helps in evaluating the overall internal sources which exist in the market. This tool helps
to manage the overall resources of the company and also shows the right direction in the market.
This tool should be considered by the production department so that proper utilization of the
resources can take place in the workplace (Nason and Wiklund, 2018).
Example of Toyota
The company emphasizes on using the resources with care and also offers unique features which
can maintain the image of the company in the market. Profits are earned by the company by
emphasizing on proper utilization of the resources as it helps to attain the set goals and targets in
the market.
Conclusion
The concluding part states that strategy developmental tools should be considered by the
companies so that it can be easy to consider the competitive advantage and also it will boost the
overall sale in the market. These factors discussed in the paper should be controlled as it can help
to focus on the positive outcome. To survive in the competitive market it is important for the
companies to consider both internal and external aspects as it can boost the goodwill of the
company.
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Competitive strategy
References
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Gupta, G. and Mishra, R.P., 2016. A SWOT analysis of reliability centered maintenance
framework. Journal of Quality in Maintenance Engineering, 22(2), pp.130-145.
Khan, U.A., Alam, M.N. and Alam, S., 2015. A critical analysis of internal and external
environment of Apple Inc. International Journal of Economics, Commerce and
Management, 3(6), pp.955-961.
Moutinho, L. and Phillips, P., 2018. Strategic analysis. In Contemporary Issues in Strategic
Management (pp. 46-79). Routledge.
Nason, R.S. and Wiklund, J., 2018. An assessment of resource-based theorizing on firm growth
and suggestions for the future. Journal of Management, 44(1), pp.32-60.
Porter five force analysis., 2018. edrawsoft. [Online]. Available at:
https://www.edrawsoft.com/five-forces-chart.php.[Accessed on 15 December 2018].
Salavou, H.E., 2015. Competitive strategies and their shift to the future. European Business
Review, 27(1), pp.80-99.
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Competitive strategy
Appendix
(Source: Porter five force analysis, 2018).
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