Report On Competitive Strategy 2022

Competitive Strategy

Competitive Strategy 1
Strategic Management is the procedure of evaluating the business environment of the company.
It is required for an organization to evaluate the internal and external environment of the
business to operate smoothly in the market. There are numerous tools that are used to analyses
the factors that affect the growth of the company such as Porter’s Five Forces Framework,
PESTLE Analysis, Value Chain Analysis, SWOT Analysis and the others (Ansoff, Kipley,
Lewis, Helm-Stevens, and Ansoff, 2018). The report is based on the topic “strategic
management models”. However, there are numerous strategic tools but in this report, SWOT
Analysis, PESTLE Analysis, and Porter’s Five Forces Framework will be discussed. In this
report, Wesfarmers has been taken into consideration to examine the macro or micro
environment. Wesfarmers is an Australian conglomerate firm which provides the fertilizers,
chemicals, coal mining and industrial safety products. It works in two countries such as New
Zealand and Australia (Wesfarmers, 2018a).
SWOT Analysis is a strategic planning technique which is used by the organization to identify
the strength, weaknesses, opportunities and threats. It also helps to determine the competitive
position of the company to develop the strategic planning. It is a technique for assessing the
competition, risk, performance, and potential of a business. This tool is used to evaluate or
examine the external or internal factors. This strategic tool is used by the company to evaluate
the position in the market. This tool is used by the investors or competitors to evaluate the
position of the company. This tool also used by the organization to identify the areas in which it
has to improve or the areas where it can grasp the opportunities to gain the advantage.
Strength: It states the capability or ability of the company. It has been seen that the brand image
of Wesfarmers is high in the Australian market. The business has large number of shareholders

Competitive Strategy 2
500000 and also has 20000 people that help to operate effectively or efficiently smoothly
(Wesfarmers, 2019b).
Weaknesses: It states the area where the organization has to improve. Wesfarmers operates in
limited areas in terms of geographical as the organization operates in two countries such as New
Zealand and Australia. The company also has lack of presence in the online market.
Opportunity: It states the area that an organization has to grab the market. It is observed that the
company has the opportunity to grasp the share of online market in high percentage.
Threats: It states the areas or factors that raise the risk for the company. It has been seen that the
major threat of the firm is its competitors. It is observed that the high competition among the
companies increasing the threat of losing the consumer (Mind Tools, 2018a).
PESTLE Analysis is a strategic management model which is used to study the macro-
environment factors. The tool is used to analyze the external factors such as political, economic,
social, technology, legal and environment. This tools especially used while the organization
expand the business in new market. The external factors affect the operation of the company or it
helps to attain the higher level of growth in the market. The decisions of government or the
policies developed by the government are the major factor that affects the business that is why; it
is required to evaluate the external environment of the business.
Political: Government of Australia introduces the policies related to exporting or importing the
business in the other country. It affects the operation activities of Wesfarmers while import the
raw material from the other country (Bajada, 2018).