Competitive Strategy

Running Head: COMPETITIVE STRATEGY 1
Competitive Strategy
Student Details
4/25/2019

Competitive Strategy 2
Contents
Introduction.................................................................................................................................3
Strategy Development Tools.......................................................................................................3
PESTLE Analysis.....................................................................................................................3
SWOT Analysis........................................................................................................................4
Porter’s Five Forces.................................................................................................................4
Resource-based View (RBV)...................................................................................................5
References..................................................................................................................................7

Competitive Strategy 3
Introduction
Economic conditions are changing rapidly, and to meet the demands of the changing market
conditions every organization is making efforts to assess its performance on the regular basis.
Hence, in order to sustain its competition into market, organizations are taking steps for
development by producing new products, accessing different markets, making product prices
more reasonable and attractive, satisfying customers, and developing new strategies
(Montalvo, 2011). In order to investigate the internal and external market conditions, analysis
of wishes and needs of customers, product costs, examine performance of organization, get
market information, and to ensure competitive benefits in production activities, executives and
managers of organizations are looking for best tools and techniques for their organizations
(Jarzabkowski & Kaplan, 2015).
Strategy Development Tools
Below is detailed discussion on four strategy development tools and how they are used in
business.
PESTLE Analysis
This tool is used by organizations to analyse the market conditions in which they are
operating or want to venture a new product or project. This tool is helpful in providing the view
of complete environment from various different angles to the companies in order to allow
them to check and keeping track of certain idea or plan (DelMarmol & Feys, 2015). There are
certain questions that one needs to be clear about before conducting this analysis. These
questions include: political situations of the destined nation and effect of them on the industry,
economic factors, cultural determinants, technological innovations and their impact on market
structure, legislations to regulate the industry, and environmental concerns for the industry.
Every aspect of this technique is important for the industry in which a business is. This
framework not only provides the understanding of the market but also represents key factors
of strategic management which defines what a company should do as well as accounts for
goals and strategies of an organization (Team, 2013).
Political: These factors identify the extent to which a government of a nation can influence
the economy or a particular industry. For example, if a government imposes a tax or duty on
the products and services of an industry then it will change the whole revenue generating
structures of companies. Some political factors include Fiscal policy, tax policies, trade tariffs,
and several others that a government can impose around the fiscal year and this might have
huge impact on the business environment (DelMarmol & Feys, 2015).
Economic: These factors determine the performance of an economy which has direct
impacts on an organization. For example, inflation rate of an economy would impact the
pricing policy of the companies. Along with this, these factors also affect the change
demand/supply models and purchasing power of consumer for that economy. Economic
factors include foreign exchange rates, inflation rates, economic growth patterns, interest
rates, and many more (Jarzabkowski & Kaplan, 2015).