Important strategy development tools

Running head: Competitive strategy
Competitive strategy

Competitive Strategy
Important strategy development tools
In the present era, it has been seen that there are different strategy development tools that are
used by the organizations. It is believed that strategy development tools positively affect the
overall operations of the company in the highly competitive business world (Verhoeven and
Johnson, 2017). The tools that are considered important are SWOT, PESTLE, PORTER FIVE
FORCE and Ansoff strategy.
SWOT ANALYSIS
It can be said that SWOT ANALYSIS is considered as a powerful tool that assist the company to
develop their strategy and also it guide the overall activities of the company. SWOT ANALYSIS
stands for Strength, weakness, threats and opportunities. Strengths and weakness are considered
as the internal factor of the company as it helps to maintain control over the change.
Opportunities and threats can be considered as the external factor as it helps in protecting the
threats that prevails in the market. SWOT analysis is considered as the effective tool and it also
involve the leaders of the company. The innovative companies consider this approach to look
towards the different factors that affect the growth of the business. By considering the SWOT
analysis approach the current situation can easily access in reference to the resources of the
company (Phadermrod, Crowder and Wills, 2019).
 SWOT ANALYSIS OF Nestle
Strength
 One of the largest company in the food sector
 More than 330000 employees
 Largest R&D
 Popular brands Maggi and Kit Kat
 Strong marketing and advertising
 Brand loyalty
Weakness
 Big global brand
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Competitive Strategy
 There are many controversies in different countries
Opportunities
 Focus on capturing the rural markets
 Should emphasize on joint ventures and acquisitions
 Tie ups with leading hotel chains and schools
Threats
 High competition level
 High cost of the raw materials
 Failure of complex supply chains
 Economic instability
 Competitors are Unilever and Kraft foods
Pestle analysis tool
Pestle analysis is considered as the strategy developmental tools that are taken into consideration
by the companies to manage the external environment. It is the analytical tool that is used by the
businesses for planning purpose. This is also considered as a strategic framework that externally
influences the activities of the business. There are different macro environment factors that
impact the strategic planning such as new laws, tax changes, and trade barriers and also change
in demographic. By having proper understanding of the external environment, the companies can
easily maximize the opportunities and also reduce the threats in the workplace. There are 6
factors that are related to this tool: political, economic, social, technological, legal and
environmental. These factors are considered at the time of maintaining the overall activities of
the company (Moutinho and Phillips, 2018).
 Example of Tata Motors
There are different trade agreements that impact the overall activities of the company the
political stability is one of the important aspect that affect the growth of the business. It has been
observed that in Asia, flexible trade practices have helped the company to attain success and it
enhanced the demand of the cars in the market. In relation to the economic factor, it has been
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