Importance of PESTLE, SWOT and Porter’s Five Forces Analysis in Competitive Strategy

Running Head: COMPETITIVE STRATEGY
Competitive Strategy
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1COMPETITIVE STRATEGY
Table of Contents
Introduction......................................................................................................................................3
Importance of PESTLE Analysis.....................................................................................................3
Political Factor.............................................................................................................................4
Economic Factor..........................................................................................................................4
Social Factor................................................................................................................................5
Technological Factor...................................................................................................................5
Legal Factor.................................................................................................................................5
Environmental Factor..................................................................................................................5
Porter’s five forces Analysis............................................................................................................5
Power of the Existing Competitors..............................................................................................6
Power of the Suppliers.................................................................................................................6
Power of the Buyers.....................................................................................................................6
The threat of the Substitutes........................................................................................................7
The threat of new entrants in the market.....................................................................................7
SWOT Analysis...............................................................................................................................7
Strengths:.....................................................................................................................................7
Weaknesses:.................................................................................................................................8
Opportunities:..............................................................................................................................8
Threats:........................................................................................................................................8

2COMPETITIVE STRATEGY
Conclusion.......................................................................................................................................8
Reference List..................................................................................................................................9

3COMPETITIVE STRATEGY
Introduction
Market analysis may be defined as a study of the attractiveness as well as the
dynamic of a specific market. Market analysis is considered to be a part of the industry analysis
and is also termed as environmental analysis. With the help of environmental analysis, the
managers of an organization are able to understand the internal as well as the external
environment of the market (Pulver 2012). While internal analysis of market helps the managers
to understand the strength, weaknesses, opportunities as well as threats of the organization with
respect to the international market, external analysis assist the managers to understand the
political, economic, social, technological, legal and environmental factors of the specific market
in which the organization has been or is going to be established. In this essay, a brief discussion
on the importance of three of the crucial market environment analyzing tools, namely, PESTLE,
SWOT and Porter’s five forces model has been performed