Business Strategy of Deloitte: PESTLE, SWOT, Porter's Five Forces Analysis and Competitive Advantage

This report analyses the business strategy of Deloitte through PESTLE, SWOT, Porter's Five Forces Analysis and Competitive Advantage. It includes detailed macro and micro analysis of the company, critical evaluation of competitive surroundings, and justification of potential competitive advantage by devising various valid strategies and tactical objectives to achieve goals.

Business Strategy

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PART 1............................................................................................................................................1
Detailed PESTLE and SWOT analysis of company..............................................................1
Analysis and critical evaluation of competitive environment by implementing Porter’s
five forces model........................................................................................................................3
Determination as well as justification of company’s present and potential competitive
advantage...................................................................................................................................5
Devise of valid strategies as well as tactical goals to accomplish strategic goals.................6
PART 2............................................................................................................................................8
Critical evaluation of various types of strategic direction that is present to company......8
Justification and recommendation of proper growth platforms as well as strategies........9
Evaluation of ways and means by which selected strategy could be monitored for having
success........................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy is very essential for or any company as it helps in achieving particular
goals as well as objectives. It is type of management plan that helps in increasing company’s
performance (Heshmati, M. and Csaszar, F., 2021). It represents different ways for
accomplishing objectives and without business strategies it becomes difficult for companies to
perform their market practices with their competitors. Producing business strategies is considered
to be one of main activity of Management. It is basically a set of competitive moves as well as
actions which is used by companies in order to attract customers, generate success,
accomplishing objectives and strengthening performance of company in markets. Business
strategy outlines how business should be performed how to reach with planned outcomes. This
report is based on business strategy of Deloitte which is a multinational professional services
network company by having their offices in over 150 countries as well as territories around their
global world (Handayani, Setiyawan and Prasetyo, 2021). This report includes in two parts
where part 1 consists of detailed macro and micro analysis of company with their critical
evaluation of competitive surroundings by using Porter five forces model. There is justification
of potential competitive advantage by devising various valid strategies and tactical objectives to
achieve goals. While part 2 consists of critical evaluation of different kinds of strategic directions
which are available in company, justification and recommendation of proper growth platforms
around with evaluation of different methods by which strategy could be monitored for having
success followed by its conclusion.
MAIN BODY
PART 1
Detailed PESTLE and SWOT analysis of company.
In order to analyse influence of macro and micro surroundings it is necessary to examine
various factors so that strategies could be formulated according to their requirements and
company could be able to achieve its objectives (Zhou, 2021). In relation to Deloitte for having
Macro analysis PESTLE analysis is performed and SWOT analysis is performed for analysing
internal capabilities. PESTLE and SWOT analysis of company in order to examine their
strategies are explained as follows:
PESTLE analysis:
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This analysis includes various outer factors that could affect business practices in a huge
manner. These factor are political, economic, social, legal, technological as well as
environmental.
 Political factors: This factor of analysis consist of change in European market after
Brexit and there is Trump administration policies effect strategies of Deloitte in high
number on political base (Kim and Park, 2021). These factor could create an impact on
company. There are different changes that have been taken place in working policies of
company.
 Economic factors: There is constant fluctuation in global real Gross domestic product
that could affect working practices of Deloitte in high level along with there is currency
fluctuation that could affect economic position of company on high basis.
 Social factors: This factor leads in changing preferences of millennials affect their
company practices. Along with culture as well as social influence on their business varies
from country to country. It signifies Deloitte that they should consider these factors for
having their safety and health conscious by analysing demographics, population growth
rate as well as cultural aspect.
 Technological factors: As Deloitte technology is considered as one of most essential
method of being competitive in highly competitive market area and they are using
globalisation which could consist of different elements of using technology. As they are
involved in social media along with block chain and advance payment technologies are
being used in company. There is also digital disruption which could affect their business
practices and high basis.
 Legal factors: There is espionage practices along with diversification through acquiring
various digital marketing and analytical ideas which could affect their practices on legal
basis (Nakata and Bahadir, 2021). Company is involved in laws and regulations that
might effect on their business operations has it consist of impending and current
legislation which tends to be an impact on their sector.
 Environmental factors: Deloitte is facing breakthrough for sustainability in a
commercial real estate. There is long lasting impact by company surrounding that could
identify various environmental factors it consists of awareness of seasonal as well as
climatic change that could impact on their performance.
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SWOT analysis:
This analysis helps in analysing inner core competencies as well as potential of company
which could help them in formulation of effective strategies in order to run their business
practices effectively. It comprises of strengths, weaknesses, opportunities as well as threats.
 Strengths: Company is known for having best for consulting as well as advisory business
practices (Brokāns, 2021). Along with there is extensive global present through several
maven customers with constant growth of Deloitte digital that could help them in
increasing their performance.
 Weaknesses: Deloitte basically faces weak revenues from its emerging markets.
Company is less efficient as well as they required to improve their allying market trends
for sustaining in market.
 Opportunities: Company could take advantage as well as driving force for having their
convenient time which is present in environment that could help company in achieving
their goals. Deloitte can explore different emerging markets by expanding their business
practices along with there are audit and tax compliance which could be used by company
in their future practices with consulting start-ups.
 Threats: Deloitte is generally facing intense competition in their rivalry market along
with there is small and medium consultancies that are emerging in markets which could
affect their market share as well as there are different legal issues and lawsuits that are
harming their brand picture in market.
McKinsey’s 7s model:
It is defined as a framework that analyse an organisational design and is based on seven
factors which is mentioned below in context to Deloitte:
Strategy: It is defined as plan develop by company with an objective to remain
competitive at marketplace. In context to Deloitte, it follows differentiation strategy as it help
company to attract customers and to attain competitive advantage as compare to its rivals.
Structure: Deloitte make use of hierarchal organisational structure as it help company to
systematically implement all the activities and delegate the responsibilities to staff members
in a right and proper manner.
Systems: It is referred as the decisions as well as workflow which make operations of an
organisation standard. In relation to Deloitte, the higher authorities of company take decision
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by considering ideas and suggestion of employees that further help in execution of activities
in a proper manner.
Skills: It is defined as the capabilities and talent of the employees on which the
achievements of an organisation depend. With reference to Deloitte, it provides training and
development session to its employees in order to enhance their skills and capabilities which
further help company to attain objectives within set time period.
Style: It refers to the approach that higher authorities consider in order to lead company,
improve performance and to maintain positive working culture as well. With reference to
Deloitte, its higher authorities adopt participative leadership style that help in bringing new
ideas as all the staff members are allow to participate in the decision making procedure. This
also help company to develop and maintain positive working culture in an effective manner.
Shared values: These are the norms and standards in an organisation which impact
directly on the behaviour and attitude of employees. With reference to Deloitte, it has an
effective policy which are advantageous for staff members and help in developing positive
attitude of staff members in an appropriate manner.
Staff: It includes the personnel of an organisation, how they prepared as well as trained
to complete the task. In relation to Deloitte, it has it has talented and skilled members which
is trained by higher authorities so that all the activities and operations is implemented in a
proper manner.
Analysis and critical evaluation of competitive environment by implementing Porter’s five
forces model.
While formulating business strategies it is necessary for companies to analyse present
competition in market so that they could formulate their strategies according to that and could be
able to deal with competition on effective basis by defeating them (Fukawa, Zhang and
Erevelles, 2021). In order to analyse competitive environment, it is necessary for companies to
evaluate competition which is performed through Porter five forces model through which rivalry
in competition could be analysed on effective basis. In relation to Deloitte Porter five forces
model which could be used in order to evaluate their competition environment are explained in
different factors are as follows:
 Bargaining power of buyers: The number of suppliers in sector where Deloitte is
operating is more than the number of companies that are producing their product.
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Company's product differentiation in their sector is high that means that their buyers are
not able to find their alternative companies that are producing their particular offering.
 Bargaining power of suppliers: As number of suppliers in industry where Deloitte is
operating its business is more as compared to buyers. It means that their suppliers are
having less control over their prices as well as it makes bargaining power of supplier a
weak force (Vivian Maretina, 2021). As suppliers of company do not provide a credible
threat for moving forward integration in to their industry where Deloitte is operating its
business practices.
 Threat of new entrants: Economies of scale is fairly crucial for company in order to
accomplish their practices. It could be in favour of company that is present in market and
it creates barrier for new entrants for protecting them from entering into markets. This
barrier could be both industrial or legal and it could affect business practices in terms of
formulating their strategies.
 Threat of substitute: As there are few substitute that are available in consultancy chapter
where below is its carrying their business. The very few substitute that are present are
also manufactured by low profit earning industries (Wu, 2021). Deloitte could focus on
providing their great equality in their products where customers could be able to choose
their products with high quality rather than substitute products. Along with a good focus
on differentiation in its product which could ensure that their buyers could see their
product as unique and do not shift to other in order to substitute their product which do
not provide their unique benefits.
 Rivalry among present firms: As number of competitors in their industry where Deloitte
is operating are very less as there is a chance of having large market size. There are very
few competitors that could have large market share that examines that these will be able
to engage in competitive action for increasing position as well as becoming market
leaders. It makes rivalry among present forms a stronger force in company for Deloitte.
For that company requires to focus on differentiating their products that actions of
competitors could be less effect on its customer.
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Determination as well as justification of company’s present and potential competitive
advantage.
It is necessary for companies to identify their potential competitive advantage so that they
could be able to expand their business practices in other parts of countries for improving their
profit margins by using effective business strategies (Senyo, Effah and Osabutey, 2021). In
relation to Deloitte it has been examined that culture is considered to be success for having
competitive advantage towards company. It is necessary for companies to provide effective
corporate culture so that they could be able to gain competitive advantage in markets by
increasing their profit margins. As being a large company could expand their business practices
in different parts of world. It has been identified that company potential competitive advantage is
to provide offerings to customers so that they could be able to accomplish their goals within
specific period of time. As company should use product development strategy in order to
develop their products with unique idea and creativeness so that customers could be able to
purchase their product and do not switch to substitute and company could be able to increase
their competitive advantage for sustaining their position in longer-term.
It has been identified that by using product development strategy Deloitte could be capable
to maintain their position in market and they could increase their competitive advantage in terms
of dealing with competition with their increased market share. This competitive advantage could
help company in order to accomplish their planned goals with effective strategy in a competent
manner. Along with this strategy is useful for company as it helps them in building their market
share by using different tactics so that customer could be attracted towards their offerings. It
helps Deloitte to increase their brand image in market by increase market share so that they could
be able to expand their business practices more in different parts of world for increasing their
profit margin. Strategic planners could be able to understand about how other factors good helps
in increasing competitive advantage towards competition by lowering profitability. Company
could focus on building more customers rather than winning existing customers of present
companies as a result they could be able to build their large customer base for selling their
unique products. Company is having a positive industry growth which identified that its
competitive advantage is likely to be engaged in completing actions as they do not require to
capture other markets from each other (Ordonez-Ponce, Clarke and Colbert, 2021). It is
necessary for company to formulate strategies according to market demand and customer
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requirements so that they could be able to fulfil requirements and generate customer satisfaction
towards their offerings. As an outcome it could be built competitive advantage towards
competition and company could be able to deal with present competition in an effective manner
by using various tactics and strategies in marketplace. This strategy beneficial and it could lead
to accomplishment of desired goal within a particular point of time.
Devise of valid strategies as well as tactical goals to accomplish strategic goals.
For having effective strategies and tactics and objectives it is necessary to keep strategic
planning for accomplishing desired strategic objectives in an effective way (Thams, 2021). In
relation to Deloitte for having a devise strategy as well as practical goals which are to be
achieved by a company are explained through Bowman's strategic clock which is as follows:
Bowman's strategic clock model:
It is considered to be a clock which represent cycle of different strategies that are to be
implemented by Deloitte for dealing with competition in marketplace and achieving goals. It
delays in different factors that are as follows:
 Low price as well as low value added: It basically more probably that it is not
implemented by Deloitte because they are offering their services at low value which
would decrease their brand image in market.
 Low cost: This strategy could be implemented by Deloitte in order to offer various
offerings at lower cost so that customers could be able to get attracted more and business
could be expanded on a wider scale.
 Hybrid: In this is strategy Deloitte could provide services to their customers through
lower-cost strategy that could have a better return on their investment which is being
performed in market.
 Differentiation: This strategy of Bowman’s model could provide a wide range of
services to customers which could meet their requirements as well as demands that are
provided by Deloitte.
 Focus differentiation: This strategy could help Deloitte to maintain their focus on their
offerings by providing a variety of services through which customers could be able to get
satisfied more in number.
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 Risk high margin: In this strategy company could induce their continuous development
by making constant innovation and creativeness in their offerings by taking different risk
in market (Handrito, Slabbinck and Vanderstraeten, 2021).
 Monopoly pricing: By implementing this is strategy Deloitte could lead other
competitive company by managing their pricing of various services along with get
followed by other companies.
 Loss of market share: As company could be able to induce their negative impact on their
performance of them as well as they share could be get reduced.
These strategies could be used by Deloitte in order to manage them standardize outcomes by
which they could be able to accomplish their targets in a particular time scale in a systematic
manner as well as they could be able to carry their expansion practices without having any
difficulty.
Strategies: Deloitte could implement product development strategies in their business
practices by making innovation and creativeness in their offerings for having regular success by
achieving their growth (Karekla, Pollalis and Angelopoulos, 2021).
Goals: Objective of Deloitte is to make an impact which could matter towards customers.
Their motive is to inspire they are professionals as well as help them to achieve a global strategy
of being undisputed leader in providing professional services.
Tactics: In relation to Deloitte company is using various tactics in terms of their pricing
policy so that they could be able to generate more customer base by attracting them with lower
price with ensuring of high quality in an effective manner. It could be explained by analysing
marketing mix of company which is as follows:
 Product: As Deloitte is a private company they are providing professional services in
different parts of world. They are holding effective position in management as well as
global consenting by providing wide range of diversified product as well as service
portfolio.
 Place: Company has nearly 2,44,000 actively trained employees that are working under
their different companies that provides professional helps to their customers. Company is
carrying a network of 150 countries (Du and Kim, 2021). As a member of Deloitte it
retains its independent as well as separate legal entity along with subjected to regulations
of country where they are operating.
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 Price: Company is using pricing strategy of being largest network provider of
professional services along with their considered as one of among big 4 companies.
Company is having integrated platforms for giving best possible services within a
premium pricing policy for their services. Company is helping their customers in
minimising the risk options due to it has a deep understanding of industry along with its
value added pricing policy which is being accepted by customers.
 Promotion: As being a global company they are creating their brand awareness as well as
brand visibility by actively involved in different sports as well as event categories.
Company is carrying sponsorship of different forms of society events along with sports
teams of universities for generating their awareness.
PART 2
Critical evaluation of various types of strategic direction that is present to company.
It has been critically evaluated that there are different types of strategic directions which
could be implemented by company in order to expand their business practices more. In relation
to Deloitte various strategic directions that could be implemented by a company are as follows:
 Corporate strategy: This strategy could lead Deloitte to have a long-term vision for their
company which leads inspiring customers by providing them effective services for their
management consultant.
 Customer strategy: This strategic direction defines in providing go-to-market strategy
which brings offerings into market towards right customer segment so that they could be
able to purchase them online or offline modes.
 Innovation strategy: This strategic direction is beneficial for company in terms of
providing effective quality of services two customers with in a particular amount in an
affordable price so that they could be able to create, captcha as well as deliver value by
transforming their ideas into concept and generate revenues in higher amount (Adedoyin,
Nwulu and Bekun, 2021).
It has been evaluated that innovative strategic direction could be used as their business
strategy so that company could be able to make constant creativeness as well as innovation in
their offerings by generating product development so that they could be able to sustain in
markets for longer term.
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Justification and recommendation of proper growth platforms as well as strategies.
It is essential for companies to use proper growth platforms along with strategies for having
success on regular basis. It has been identified that by using effective strategies and growth
platform companies could be capable to get a benefit of competitive advantage for maintaining
their position in marketplace by dealing with competition. It helps in achieving goals on regular
basis in a particular point of time. In relation to Deloitte there are certain recommendations
which could be provided to company for implementing growth platforms in order to have
success that are as follows:
 Company could focus on differentiating their product so that they could be able to take
action against their competitors and it could be able to get less effect on their customers.
 Deloitte could make market research for understanding supply demand condition in their
industry for protecting overproduction of their products.
 Company could focus on providing high number of quality in their offerings so that
customers could be able to get attracted more within an affordable price (Sinurat, 2021).
 Company should focus on making innovation as well as differentiation for attracting
more customers as product development and product differentiation by using quality of
product is essential for purchase to be get attracted in market.
Evaluation of ways and means by which selected strategy could be monitored for having
success.
In order to implement business strategy, it is necessary for companies to keep a constant
monitor and ensure that they are being implemented in an accurate way so that they could be
able to achieve success on regular basis. As there are certain ways by which product
development strategy could be monitored for having success opportunities of company. In
relation to Deloitte different ways and means through which product development strategies
could be insured and monitored are as follows:
 Company could create review dates plans on regular basis so that they could be able to
expand their business market quickly in markets. As by making review dates company
could be able to outline their goals for having their comparative analysis.
 Deloitte could develop a tracking system for their business strategy plants which could
consist of measurable objectives so that they could be able to develop a tracking system
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for accessing their stand on constant basis. This approach helps company to tweak system
for monitoring their strategy regularly.
 In order monitor product development strategy company could co-ordinate business
along with making marketing plan so that they could be able to make innovations on
regular basis by analysing needs and requirements of customers and market in order to
sustain in market for longer run (Makowski and Kajikawa, 2021).
 It is necessary for Deloitte to ensure their strategy by making changes when they feel that
it is necessary to make changes in their strategy with a fluid plan which could be tweaked
as well as updated according to business changes and growth market.
CONCLUSION
From above analysis it could be concluded that business strategy is an essential element that
is to be prepared by companies in order to accomplish their planned goals. This report explains
about various factors and analysis that are to be performed by companies in order to formulate
their strategies for accomplishment of their desired goals business specified period of time. As
there are various computers that could affect company at any point of time so with that factors it
is necessary for companies to make strategies according to their strength so that they could be
able to achieve their goals within time period. There is critical evaluation that explains about
different types of strategic direction which are to be present in company with their
recommendations that could be used by companies in order to have growth platforms along with
there is an explanation of devaluation with selected strategy which could be in short for or
having success development.
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