Competitive Strategy Essay 2022

RUNNING HEAD: COMPETITIVE STRATEGY 0
Competitive Strategy
Student’s Details
8/18/2019

COMPETITIVE STRTAEGY 1
Introduction
Strategic development tools are essential for making strategic plans and gaining
competitive advantage from the competitors (Jarratt & Stiles, 2010). These tools enable
the company in strategic planning for the purpose of achieving effectiveness in the
company (Waas, et al., 2014). Here, the essay discusses the strategic tools such as
PESTEL analysis, SWOT Analysis and resource-based view by taking example of
Wesfarmers, Zara and Amazon kindle. These models are helpful in analyzing the
capabilities of the organizations and making strategies to beat the competitors.
PESTEL Analysis of Wesfarmers
PESTEL Analysis is considered to be an effective tool to be used by the companies to
overlook the macro-environmental factors present in the external environment which
have influence on the productivity of the company and also the results of this analysis
can be used to evaluate the threats and weaknesses that the company can face from
the external environmental factors (Issa & Chang, 2010). PESTEL Analysis of
Wesfarmers is as below:
Political Factors
As Wesfarmers is an Australian retailing company, the company can be impacted by the
bureaucratic interferences into the industry. Political stability, legal framework and the
level of corruption have impact on the productivity of the company which can be either
positively and negatively. Similarly, Wesfarmers faces major issues due to trade
regulations and anti-trust laws for the retailing industry.
Economic Factors
The economic system of the country, inflation rates, education level and economic
growth are the major economic factors that have influence on the operations of the
company (K, 2018). Similarly, Wesfarmers faces strategic issues due to changes in the
economic structure and fluctuations in exchange rates which has major impact on the
financial performance of the company.