Competitive Strategy Management Essay 2022

Running Head: MANAGEMENT 0
COMPETITIVE STRATEGY

MANAGEMENT 1
Contents
Introduction..............................................................................................................................2
Pestle Model..............................................................................................................................2
Swot Analysis............................................................................................................................4
Porter five force framework....................................................................................................5
Conclusion.................................................................................................................................6
References.................................................................................................................................7

MANAGEMENT 2
Introduction
Strategy development tools are used by the organization to attain their long term goals while
assessing significant uncertainties from the business surroundings. The selection of these
tools is based on the organization objectives, challenges a firm is facing and opportunities
that a business have (Hamburg and O'Brien, 2014). Most of the strategic development tools
are effective in analyzing the functional capabilities, market situations and various other
associated factors which have direct or indirect influence over strategic decision of the firm
(Rowe and Britz, 2009). Some of the famous and widely used tools are SWOT, PESTEL,
Porter Generic Strategies and Porter Five Forces. This essay encompasses any three of these
models so that to understand their practical implications. The usage of these tools will be
applied to Coles supermarket founded in 1914. Generally, Coles operates mostly in the form
of departmental and retail stores helping Australian population to purchase products at
affordable prices. The company business environment is full of competitiveness due to strong
government regulations and market structure. In addition, international players are also
influencing Cole’s strategic decision making towards achievement of mission and objectives.
The key three strategic development tool implemented on Coles are pestle framework, porter
five forces and swot analysis.
Pestle Model
In external environment of Coles, various macro environmental factors are present that
impact the company sustainability and performance in relation with its effective functioning.
To analyze these environmental factors from various dimensions, Cole’s management needs
to use Pestle model that provides the company a holistic view of the external market. This
will help the company in its strategic formulation related to product development, market
development and diversification (Ho, 2014). On shorter level, it will help to recognize
changing demands of customers in the complex business situation. The pestle analysis of
Coles is presented below -
1. Political factors – Government control due to duopolistic market situation created
collectively by Coles and Woolworths. This has forced suppliers and create entry
barriers for new companies. Both Australian Competitor and Commission have taken