Strategy Development Tools

Running head: Strategy development tools
Strategy development tools

Strategy development tools
Strategy development tools in the business
It can be said that strategy development tools has an important role in the overall growth of the
business. It is investigated that without the strategy development tools, the business would not be
able to give their best towards the operational activities. In this paper, the emphasis will be given
on the different tools that are important for the business to consider as it helps in managing the
activities of the company in the high level of competition. The tools that will be elaborated in
this paper are Resource based view, Porter five force models, SWOT analysis and Pestle
analysis.
Resource base view is known as the strategy development tools that are used by the companies.
It has been analyzed that resource based view is the approach that focuses on the concept that
includes different types of tangible and intangible resources such as skills, information, assets
and knowledge. When these resources are combined then it boost the capabilities of the business.
With the help of this tool, the companies also determine the resources that are needed in the
workplace (Hitt, Xu and Carnes, 2016).
It helps to access the way in relation to the utilization of the resources and also enable the
company to perform and offer the competitive advantage. It is believed that to focus on the long
term competitive advantage, it is important to maintain the resources and the different aspects
should be considered such as Valuable, rare, imitable and non substitutable. Therefore, it can be
stated that resource based view is often used for evaluation of the resources and also with the
help of this tool the company can consider the core competences (Barney,2017).
2

Strategy development tools
(SOURCE: Jurevicius, 2018).
 Example of Zara
One of the best examples that can describe the resource based view tool is of Zara Company. It
can be seen that Zara has a good brand image in the market so it can be considered as the
valuable resource. Just because of the dispersed manufacturing system of the company, the
company enables to meet the basic requirements of individuals around the globe and this can be
stated as the rare resource. Zara always emphasizes on maintaining the brand value with high
quality so that it is difficult to imitate the products of the company. Zara also have more than
3000 designers and there are 650 stores of the company, so that products are easily organized in
the highly competitive market area.
The next tool is porter five force models that emphasizes on the five factors which are
1. Bargaining power of the suppliers
2. Bargaining power of the buyers
3. Threats of substitute
4. Threats of new entrants
3