competetive strategy - Assignment

Student Name
INSTITUTIONAL AFFILIATION(S)
COMPETETIVE STRATEGY

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Introduction
Contemporary organisations have to face various uncertainties and market changes for
which the management try to access its performance at regular interval of business course.
Development tools can be defined as techniques that are utilised by management to ensure
competitive advantage in every organisational activity to provide best decision making and
predictions for future performances[ CITATION Afo151 \l 16393 ]. This essay will analyse two of
the most significant development tools used immensely by contemporary organisations while
making internal and external assessment and gaining information about organisation’s
competitive position.
Practical application examples
Nestle SWOT analysis
SWOT analysis is a development tool that is used by managements to formulate
organisation’s strategic planning and strategic management. It helps in building
organisational strategy effectively and gives base for determining firm’s competitive
strategies[ CITATION Gur171 \l 16393 ]. Nestle is one of the most prominent brands dealing in
dairy and food products worldwide including Australia, America, Asia and European
countries[ CITATION Nes18 \l 16393 ].
1. Strength: SWOT analysis of Nestle reveals that the company recognises many strengths
that allows Nestle in development of core capabilities and resources along with gaining
competitive edge. The strong market recognition along with brand image has gained
consumer loyalty to a great extent. Furthermore, the company itself is involved in corporate
social responsibility that heightens firm’s image for following sustainability strategies that is
aligned with consumers expectations.
2. Weakness: One core weakness can be seen in some of the Nestle’s products that shows
less healthier food like sweets and chocolates containing artificial sweeteners. Even, food and
dairy related factors remains highly dependent on advertisement to gain customer attraction
and drive everyday sales that can lead Nestle to higher marketing and advertisement costs.
3. Opportunity: Since the firm gives value to internationalisation and shows developmental
capabilities, opportunity lays in front of the company particularly in countries that have
emerging economies. Due to growth in online marketing and sales, Nestle can increase its

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distributor partners by collaborating with online sites like Amazon and eBay to drive high
sales.
4. Threats: Threats seen for the company is arising competition due to which the company
have to constantly make changes in its pricing and other strategic choices[ CITATION Var17 \l
16393 ]. The change in lifestyle of people where they have become suspicious about packaged
food gives additional threat to the company.
GlaxoSmithKline SWOT analysis
To determine successful selection of strategies and business-related decisions, examining
internal and external environment of GlaxoSmithKline through SWOT analysis will prove
significant as it helps in balancing organisation’s internal strengths and weakness against
environmental threats and opportunities[ CITATION Osi14 \l 16393 ].GlaxoSmithKline (GSK) is
a firm dealing in bio-chemistry i.e. pharmaceutical and chemical industry in Australia.
1. Strengths: The company is financially very strong along with gaining huge availability of
resources that gives GSK strong marketing and sales activities adding to the company
strengths[CITATION Con17 \l 16393 ].
2. Weakness: Weaknesses can be been seen in its internal environment like issues found in
few of its manufactured drugs along with failures in dealing with required expectations.
While meeting high consumer demands, the company have released its expired batches that
had made numerous controversies regarding GSK products.
3. Opportunities: Opportunities like entering into oncology and biological market along with
antibodies specialists lays in front of GSK that can build strong market recognition and
increased cash flow for the company.
4. Threat: Risk related to unsuccessful products and inadequate awareness among consumers
constitutes threats for the company. Along with it, GSK have to face many legal and
environmental constraints while dealing with highly saturated chemical and drugs[CITATION
Placeholder1 \l 16393 ].
Nestle Five Forces analysis
Competition have always proved critical force for organisations while performing
organisational activities regardless the industry they belong to[ CITATION Ind141 \l 16393 ].
Although there are many development tools present in literature, most of the researchers and