Competitive Strategy: PESTLE, Resource-Based View Model, and SWOT Analysis in Tourism Industry

Running head: COMPEITIVE STRATEGY
COMPEITIVE STRATEGY
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1COMPEITIVE STRATEGY
PESTLE analysis
Pestle is one of the major tools in strategic management for the business organizations.
This tool is being used by the business organizations in order to determine the external
environment being faced by them in their operation. In addition, in the current business scenario,
majority of the large business organizations are operating in global market. Thus, the external
environment faced by them is more diverse in nature. This is due to the reasons that different
countries are having different business scenario for the organizations. Another major merit of
using pestle analysis is the ease of usage (Barney 2014). It is very easy to use in the strategic
management along with covering different aspects of the external environment. This includes the
political, economical, social, technological, legal and environmental factors.
Thus, effective usage and implementation of the pestle analysis will help the business
organizations in determining the diverse external environment and implement the strategies
accordingly. In order to analyze the effectiveness of the pestle analysis along with identifying the
approach of implementing it in the business scenario, an industry will be selected for further
analysis. Tourism sector is one of the most potential business sectors in Australia with the
increase in traffic of tourists in different destinations in Australia. However, tourism industry is
also having the importance of pestle analysis (Bettis et al. 2014). This is due to the reason that
this industry also faces the issue of different external factors.
The first element of pestle analysis is political factors. Determination of this factor helps
in understanding the change in the trend of the political scenario. In the case of the tourism
industry, this is more important due to the reason that political scenario in Australia will
determine the inflow of the tourists and the trend of investment in this sector. Effective

2COMPEITIVE STRATEGY
determination of the political factors will help the entire tourist industry to indentify the political
challenges to be faced. The next element is the economic factors that refer to the economic
performance of the entire industry (Eden and Ackermann 2013). This is also important due to the
reason that change in economic factors such as inflation will affect the tourism sector. The next
element is the social factors. This determines the social and cultural trends, which can influence
the tourism industry. Technological factor refers to advancements of the technology in the
tourism industry. In the recent time, there are various technological advancements witnessed in
the global market of tourism industry. Thus, determination of the technological factors will help
in identifying the gaps and implement measures accordingly.
Resource Based View Model
According to Ginter, Duncan and Swayne (2018), a business organization uses the given
to components to carry out its business process. These are resources and services or products
which in an indirect manner are derived from the resources. The resource based view states that
the company`s resources are its determinants of the performance within the chosen industry and
the competitive advantage within the given industry. Introduced by Birger Wernerfelt in 1984,
the model aims to highlight the importance of the resources in a given firm and identifies how
these resources need to be utilized in order to achieve competitive advantage. The model works
on various assumptions. First of all, it assumes that the diverse nature of the company`s
operation in the market is greatly dependent on the diversity of the resources they possess and
the second assumption states that diversity in terms of the resources are present as strategic are
not easily accessible throughout the firm (Gupta 2013). However, the researcher underlined the
importance of the resource diversity in an organization.