Analysis of Strategic Tools in Management

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

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MANAGEMENT
Introduction
The essay helps in the overall analysis of the various strategic tools such as SWOT,
PESTEL, Ansoff Matrix and Porter’s Five Forces Analysis which plays a major role as it
provides sense of direction along with outlining the measurable goals.
SWOT Analysis
The SWOT Analysis helps in providing information which is helpful in assisting the
resources of the organization in the competitive environment wherein the company operates.
It is an instrumental in the formulation along with selection of the strategy (Patrutiu-Baltes
2016). The respective framework is considered to be successful for the process of decision-
making as it helps the entity to uncover the different opportunities for success.
Strengths- It includes internal attributes along with resources which will be helpful
for successful outcome
Weaknesses- The different internal attributes as well as resources which will work
against the successful outcome
Opportunities- The different external aspects wherein entity can capitalize on and can
be used to their advantage
Threats- The different external aspects which could jeopardize the success of entity
For instance- SWOT Analysis of Amazon
Strengths
Approach of customer-centric
Effective delivery network

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MANAGEMENT
Weaknesses
Flop of products
Shrinking Margins
Opportunities
Acquisitions and opening physical store outside USA
Global Expansion (Amazon.com 2019)
Threats
Local level of competition
Different regulations of government
Porter’s Five Forces Model
The respective framework helps in modelling the industry which is being influenced
by the different five forces to analyse the external business environment of the industry. The
five forces framework helps in analysing whether to enter in the respective industry or
inclusion of challenges which can be faced by the companies.
Bargaining Power of Buyers- There can be few buyers present in the market for the
respective product which means the company can drive down prices and dictate the business
(Morgan et al. 2019).
Bargaining Power of Suppliers- The suppliers exert substantial bargaining power
over the different firms and it threatens to increase prices or degrade their quality (Hult and
Ketchen 2017).