Using PESTLE Analysis and Diversification as Strategy Tools for Competitive Advantage: A Case Study of Sanofi and Hitachi

Running Head: Strategy Tool
COMPETITIVE
STRATEGY

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STRATEGY TOOL
Table of Contents
Introduction...............................................................................................................2
PESTLE ANALYSIS FRAMEWORK.....................................................................2
SANOFI COMPANY............................................................................................2
Diversification as strategy tool..................................................................................4
HITACHI...............................................................................................................4
Conclusion.................................................................................................................5
References.................................................................................................................6

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STRATEGY TOOL
Introduction
PESTLE analysis as a strategy developmental tool is considered as an important tool in
the business field as it is a framework which helps in describing the macro-environmental
factors. With the help of this tool, any organization can evaluate the external environment and
identify the root cause of business inefficiency. This strategy is basically taken into
consideration by the managers or the top officials to take necessary steps and route the business
process for being efficient.
This analysis basically consists of 6 governing factors which are political, economic,
social, technological, legal and environmental factor. By analyzing all these factors, we can find
a concrete and profound factor which is hampering the business process. In order to be in a
business for a long run, all the major industries use this framework as a tool to increase the
efficiency of a business process (Gupta, 2013).
In this essay, the discussion will be focused on two companies from two different
industries which are Sanofi, a Pharmaceutical company, and Hitachi which is a Heavy
Machinery company and how PESTLE analysis and diversification as a strategy tool helps in
gaining a competitive advantage over the other industry leaders.
PESTLE ANALYSIS FRAMEWORK
SANOFI COMPANY
Sanofi is a multinational pharmaceutical company based out in France. It basically
operates in the field of pharmaceutical drugs R&D, production, and marketing (Sanofi, 2018).
PESTLE analysis of Sanofi will help in getting the detailed analysis of the company's challenges
in operation and the major areas on which the focus should be given to maintain brand structure.