Strategic Management | Reliance fresh and Amazon

Strategic
Management

STRATEGIC MANAGEMENT 1
Contents
Introduction.................................................................................................................... 2
Background.................................................................................................................... 2
Strategic Management Concepts.......................................................................................... 4
SWOT Analysis........................................................................................................... 4
PESTLE Analysis......................................................................................................... 5
Porters Five Forces Framework........................................................................................ 6
Application of theories in Retail Industry vs ecommerce............................................................7
Reliance Fresh............................................................................................................. 7
SWOT Analysis........................................................................................................ 7
PESTLE Analysis...................................................................................................... 9
Porters Five Forces Framework...................................................................................10
Amazon................................................................................................................... 11
SWOT Analysis...................................................................................................... 11
PESTLE Analysis.................................................................................................... 13
Porters Five Forces Framework...................................................................................15
Critical Analysis............................................................................................................ 16
Conclusion................................................................................................................... 16
References................................................................................................................... 18

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Introduction
Strategic Management describes the procedure of planning, analyzing and monitoring the all
actions of an organization that helps to meet all the goals and objectives. It is observed that
business environment of the firm are fluctuated due to which the firm faces the challenges while
operating the business. It is required for the firm to analyze the business environment so that it
develops the strategies to reduce the challenges and to attain the advantage in the competitive
market (Ansoff, Kipley, Lewis, Helm-Stevens, and Ansoff, 2018). There are many strategic
practices and framework that an organization has to use to evaluate the business environment
such as SWOT Analysis, PESTLE Analysis, Porters Five Forces Framework and many others
tool. These tools help to study the internal and external factors that affect the organization. The
firm can develop the strategies according to the business environment with the motive to operate
the business smoothly in the market. It is required to maintain the strategies on continuous basis
by analyzing the environment to attain the competitive advantage and grab the market share. In
this paper, the discussion is made on the topic “strategic management concepts and practices”.
In this paper, Reliance fresh and Amazon in India have been taken into consideration to analyze
the macro and micro environment factors. In this report, the strategic analysis will be done on
both the companies by consuming the different tools such as Porters Five Forces Framework,
SWOT Analysis, and PESTLE Analysis. At the end of paper, the critical analysis of both the
business environment will be done.
Background
Reliance Fresh

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Reliance Fresh is a convenience store that provides the retail services to consumers. The
company operates the business in India. It operates the business under its subsidiary firm which
is known with the name of “Reliance Retail Limited”. It was established in the year 2006 under
the Retail industry. It is one of the most profitable companies of India as it is a largest publicly
traded firm in terms of market capitalization. It is also most profitable firm in terms of revenue.
There are 700 or more store of Reliance Fresh in India with the same format and similar services.
It serves in 93 cities of India to grab the market with the high share. It offers the consumers
goods services to consumers through physical stores (Reliance Retail, 2018).
Amazon
Amazon India is a multinational technology firm. It was established in 1994-95 in America. It
mainly focuses on cloud computing, e-commerce, digital streaming, and artificial intelligence. It
is famous for its distraction of well-established industries with the help of technological
innovation and mass scale. It is recognized as one of the big four tech companies along with
Google, Apple and Facebook. It is also one of the largest firms related to revenue and market
capitalization. It is a world leading Internet Company in terms of revenue. The company
expanded the business in various fields such as video games, software, electronics, apparel, toys,
food, furniture and jewelry. In the year 2015, Amazon expanded the business with Walmart as it
is the greatest valued retailer in the United States market in terms of market capitalization. It also
serves the consumers good and services through internet (Amazon, 2019).
It has been seen that both the companies supplies the similar services through different ways.
Both the companies have their own benefits and challenges those these can face while operating
the business. In order to find the challenges and compare the companies operation, the strategic

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tools are used to examine such as SWOT Analysis, Porters Five Forces Framework, and
PESTLE Analysis.
Strategic Management Concepts
SWOT Analysis
SWOT Analysis is a strategic management tool that has been used to assess the external and
internal factors. This tool contains four elements such as strength, weaknesses, opportunity and
threat those are essential to examine to operate the business for long time (Gürel, and Tat, 2017).
It also helps to examine the current and future potential that helps to operate the business at the
global level. This tool is designed to facilitate a realistic, data-driven, and fact-based at the
strengths and weaknesses of the company or the industry.
Strength: Strength defines the factors those are different from the competitors and also helps to
achieve the objective in the market such as loyal customer base, strong brand, strong balance
sheet and the others.
Weaknesses: Weaknesses describes the factors that affects the business of the company and stop
them to perform its performance at its best level. There are some areas where the organization
has to improve to gain competitive advantage in the market.
Opportunity: It defines the external factors that the firm can grab to achieve the competitive
advantage.
Threat: It defines the factors that affect the organization performance. It is essential for the
company to identify the threat so that it can implement the strategies and to attain the objective
(Chernev, 2018).

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PESTLE Analysis
PESTLE Analysis is also a technique of strategic management which is used to determine the
macro environment factors such as political, economic, social, technology, legal and
environmental. These factors effect the organization from the outside. This is the best tool to
evaluate the business environment and implement the strategies (PESTLE Analysis, 2019). It is
also a flexible tool as it can easily implement by the company to get the effective result. These
factors define the company in different segments those are describing below:
Political: Political describes the government decision and step towards the industry or the
economy. It contains foreign trade policy, political stability, labor law, corruption, tax policy and
environmental law.
Economic: Economic states the nation performance. It includes the different factors such as
interest rates, economic growth, inflation rate, disposable income, exchange rate (Frue, 2016).
Social: It contains the general environment factors that describe the demographic characteristics,
customs, norms and number of population. It contains the trends such as safety emphasis, career
attitudes, health consciousness, cultural barriers and lifestyle attitudes.
Technology: It defines the innovation and creation of the economy. It defines the research and
development (R&D) activity, technological change, the level of innovation, technology
incentives, automation and the amount of technological awareness that a market possesses
(Morschett, Schramm-Klein, and Zentes, 2015).
Legal: It defines the legal actions that the government takes to perform the activities. It contains
consumer protection laws, employment laws, discrimination laws, antitrust laws, patent laws and
copyright, health and safety laws.