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Assignment on Competitive Strategy pdf

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Added on  2021-06-16

Assignment on Competitive Strategy pdf

   Added on 2021-06-16

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Running head: COMPETITIVE STRATEGYCompetitive StrategyName of the StudentName of the UniversityAuthor Note
Assignment on Competitive Strategy pdf_1
COMPETITIVE STRATEGY1IntroductionThe main purpose of this essay would be to understand the use of the competitivestrategy development tools that are used by the organizations so that it can help them inunderstanding the internal and the external environment in a better manner. The externalenvironment of the organization can be understood by developing the PESTLE analysis andthe Five Forces analysis that will allow the company in gaining knowledge regarding thecompetitors that are present in the area. The internal analysis can be done with the help ofSWOT that results in finding out the strengths and the weaknesses of the company so that itcan be turned in to opportunities. These analysis tools need to be used in a proper manner sothat it can be used to identify the core competency of the organization. PESTLE analysisThe use of this strategic tool helps the company in understanding their externalenvironment in a better manner so that they can have clear idea regarding the market wherethey are carrying out its operations. It is an abbreviation for Political, Economic, Social,Technological, Legal and Environmental. The political scenario needs to be understood sothat it can help the organization in understanding the policies of the country in a bettermanner (Newton, 2014). The economic perspective of the place also needs to be understoodby the company so that it can help them in getting an idea of the inflation rate and theexchange rates that are prevailing in the region. This will help in influencing the performanceof the company in a positive manner (Tanaka, 2014). The societal factors also need to be considered by the organization so that they can beable to identify the size of the population along with the demographic features that arepresent within the area. This will allow the organization in developing the products in amanner that would help in meeting the needs and preferences of the local people. The
Assignment on Competitive Strategy pdf_2
COMPETITIVE STRATEGY2technological factors allow the companies in developing ideas regarding the latesttechnologies that needs to be taken up so that it can help in increasing the level of productionand the efficiency among the employees (Hussain, 2013). This will allow the company ingaining a competitive advantage in the market over the rivals so that they can increase theirpotential in the market. The legal factors have to be understood by the company so that itdoes not lead them to any issues in setting up the business with respect to safety laws andother polices present in the country. It is important for the organization to understand thesurrounding environment so that the level of pollution can be under control, which will resultin increasing their responsibility towards the society (Zalengera et al., 2014). A company like Aldi who is present in Australia has been using this strategy for along period, which has helped them in identifying the competitors that are present in themarket. The successful analysis of the external environment with the help of this tool hasresulted in increasing their attractiveness in the market while launching a new product orservice. Five forces analysisThe use of this tool will help the company in understanding the competitive strengthso that their position can be determined within the similar industry. It will help theorganization in understanding its strengths so that the position of the company can beevaluated in the market and within the industry so that it can figure out the profitable venturesby launching a new product in the market. The power of the supplier will result in evaluatingthe impact that they create in the market with respect to supplying the raw materials (Dobbs,2014). It will help the companies in understanding the control of the suppliers in the market.It will also allow the companies in understanding the cost of switching from one supplier toanother, which will affect their level of operations as well. The power of the buyers will helpthe organizations in understanding the impact that is created by the buyers regarding the
Assignment on Competitive Strategy pdf_3

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