Strategic Tools for Contemporary Business Organizations: PESTLE, SWOT, Five Forces and Generic Strategies

Running head: COMPETITIVE STRATEGY
Competitive strategy
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1COMPETITIVE STRATEGY
Introduction
Strategic tools are having huge utilities for the contemporary business organizations. This
is due to the reason that in the current business state of affairs, there are number of factors be
considered by the organizations. However, on the other hand, it should also be noted that
different strategic tools are having different levels utilities and are applicable in different
business environments (Afonina, 2015). Thus, it is important for the business organizations to
have the fair understanding about the majorly used strategic tools in different external business
situations. This essay will discuss about the strategic tools such as PESTLE, SWOT, five forces
and generic strategies. In addition, the real world examples will be used for more effective
evaluation.
PESTLE analysis
In the current business scenario, it is much important for the business organizations to
have the fair understanding about the changing external business factors. Some of the major
external factors are political, social, economical and technological factors. In this case, pestle
analysis will be beneficial for the organizations. This tool helps in determining the political,
social, economical, technological, legal and environmental factors and will cover almost all the
major elements for the businesses (Kolios & Read, 2013). One of the major advantages of this
tool is simplicity in usage. This is due to the reason that pestle analysis can be used in any
business situations and thus is having alternate utilities. However, on the other hand, it should
also be noted that pestle is more static in nature and is ineffective in specific business situations.
Thus, the business organizations will have an overall and generalized view rather than having a
specific insight.

2COMPETITIVE STRATEGY
For instance, Walmart is one of the leading retailers in the world. Initiation of the pestle
analysis will include determination of the political factors. Walmart is facing diverse political
scenarios due to the reason that different countries are having different political environments. In
addition, the diplomatic issues between the different governments are also posing challenges for
Walmart in their global trade. Determination of economical factors identified that Walmart is
benefiting from the rapid economic growth of the developing countries. However, with the time,
competition is increasing and is affecting the profitability of Walmart (Zalengera et al., 2014).
Determination of the social environment includes diverse taste and preference patterns of the
customers. It is important for Walmart to change their product strategy in accordance to the
change in the market trend. Determination of the technological factors identified the change and
evolution of the technology that will have impact on the business profile of Walmart.
Determination of the legal factors will further help in identifying the impact of the regulations
and legislations for the business operation (Islam & Mamun, 2017). Lastly, environmental
factors will helps in identifying the impacts of the green standards and initiatives in the business
operations. Thus, it can be concluded that pestle analysis will be beneficial for the business
organizations in determining this overall external factors.
Five forces analysis
Five forces analysis is being used in determining the industry competitiveness for the
particular sector. In the current business scenario, it is also important for to determine the
competitive scenario due to the reason the level of the competition is high in the current time.
This model is having major five elements that will help to determine the organizations in
identifying the intensity of different forces (Zhao et al., 2016). Apple will be used for
determining the utility of the five forces model. The first element of this model is the bargaining