Competitive Strategy Analysis Report for Business Development

This report provides an analysis of competitive strategies, focusing on SWOT, PESTLE, and Five Forces frameworks. It begins with an introduction emphasizing the importance of understanding internal and external factors for organizational success. The main body delves into SWOT analysis, highlighting its role in assessing strengths, weaknesses, opportunities, and threats, using Marks & Spencer as an example. The report then explores PESTLE analysis, explaining its use in understanding the external business environment, including political, economic, social, technological, environmental, and legal factors. It discusses how PESTLE supports strategy formation, product development, and business expansion. Finally, the report examines the Five Forces model, emphasizing its role in understanding industry dynamics, including the bargaining power of customers and suppliers, industry rivalry, and threats of new entrants and substitutes. The conclusion underscores the need for effective strategies to achieve competitive advantages, supported by these analytical tools.

COMPETITIVE STRATEGY

TABLE OF CONTENT
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
CONCLUSION...........................................................................................................................................6
REFERENCES............................................................................................................................................8

INTRODUCTION
It is very important for the organizations to understand internal and external factor so that
they can have a better functioning. This factor is going to help the organization have a better
operation and increase the profit margins of the organization.
MAIN BODY
SWOT
Business in the market has to understand their internal and external factor so that they can
function effectively. The competition in the market is increasing in all the industries in the
market which is why the organizations have to make decisions effectively so that they can get a
competitive advantage. There have to be minimum risks in the organization and have a strong
strategy to function in the market so that the organization can have a better functioning. SWOT
is a competitive strategy which the organization can use to understand the internal environment
of the organization. This can help the organization to understand their strengths, weakness,
opportunities and threats so that there is a better functioning of the organization. It is very
important to understand their productivity and the factors which are responsible for not making
the organization get the high profit margins (Dombrowski, Krenkel and Wullbrandt, 2018). This
is another simple matrix which can be used by the organization so that they can have a better
understanding of the market and the organization in the market. Marks & Spencer is a very
experienced industry which is using this tool effectively so that they can plan for the future
which is going to be very effective for the organization.
There is a lot of brainstorming sessions which are conducted in the organization and
analysing those on this tool is going to help the organization to take the right decision in the
market. Marks and & Spencer has Zara, United Colors of Benetton, etc as their competitors
which is why it is very essential for the organization to function effectively in the market so that
they can have a better functioning (Smith, 2018). Risks have to be taken in an organization so
that there is a better functioning and the organization will be able to have better operations in the

market and the company will be able to make the employees also work in the same direction.
Through this the organization will be able to analyse their barriers in the market and the
organization will be able to take out solutions for them on time which is going to help the
organization to grow. Being such a successful organization in the market it is very important for
the organization to understand their limitations so that the organization can overcome those so
that the organization can take decisions effectively. Having one direction of functioning in the
organization is very essential which this tool can help the organization to have so that there is a
better functioning of the organization.
PESTLE
PESTEL Analysis is an effective tool enables company to understand the external
business environment associated with the market sector. Usage of PESTEL Analysis can be
summarizes in following manners.
Strategy formation: PESTEL Analysis support company in framing an effective strategy
for business development and growth. With the support of this analytical tool company analysis
different aspects associated with the business environment such as political factors, economic
factors, social factor, technological factors, environment factor and legal factor. All the factors
like political factors drives organisation to under the political stability in the region, economic
factor enables company to understand the economic stability in the country aiming to expand its
business operations (Schuetz and Schrefl, 2017). All products of the company are developed and
launch based on the different social elements like fashion, trend, culture and other social aspects
so that productive presence of the company in the associated market can be achieved. With the
support of technological analysis inn PESTEL Analysis company evaluate all technological
development that can support strategies of company in getting effective success in the respective
market. In order to frame Strategies Company needs to analysis legal application of the
strategies. Legal factor drives company towards all associated laws and legislation on the basis
of the application of strategies. For example Marks and Spencer operate its business operations
in retail sector. Company develops all its strategies based on the different PESTEL Analysis
factors. All the factors support company in making effective business strategies.

Product development strategies: PESTEL Analysis tool supports company’s strategy
formation in respect to product development. This is among the crucial strategies form by
company as it directly influences company’s growth potential in the target market. PESTEL
Analysis factor like social factor drives company to understand all current fashion and trend of
the associated market sector. Company develop or launch all its products based on the fashion
and trends of the market. Social factor also enables company to understand the needs and
demands of the target customers in market. All product development strategies are frame on the
basis of different social elements involved in the social factor analysis involved in PESTEL
Analysis tool. For example Marks and Spencer Company launch all its new products based on
the different social factors to get the effective success related to new products launch in the
market.
Business expansion strategies: Business expansion is also among the key functional activities
of the company. Business expansion play huge role for the company in achieving more effective
growth potential in the market. Analytical factors like political, economical, social,
technological, environmental and legal factors play crucial role in order to develop the suitable
strategies for the expansion of the business units in new market (Helmold, Terry and Hummel,
2020). Company gets the brief overview in respect to current political situation in the new
market location. Political stability also play huge role in the growth of the business at new
market. PESTEL Analysis also guides company towards the social elements like culture,
tradition, religion, beliefs of potential customers and other key social elements associated with
the new geographical locations attached with the business expansion strategy. For example all
strategies frame by Marks and Spencer Company are based on the different elements of PESTEL
Analysis tool.
Five Forces
Five forces is another tool which can be used by organizations to understand the external
factors of the organization which needs to be improved so that the organization can have a better
functioning. To use this tool there is no requirement of professionals or technicians to apply this
tool in the organization but this tool when applied is going to help the organization a lot to

understand their objectives better. This tool can help the organization to plan effectively and
function in one direction. The five forces includes, bargaining power of customers, bargaining
power of suppliers, industry rivalry amongst companies, threat to new entrants and threat of
substitute. Since the competition in the market is increasing it is very important for the
organization to make plans accordingly (Vargas and Sierra, 2019). These five forces have to be
in the power of Marks & Spencer so that they can function effective and get a competitive
advantage and not just that but also get a higher profit margins. The organization will be able to
tackle the issues in the organization and have a better place for them when they get a power on
these five forces which are essential in the organization.
The changes in the organization are going to slow down in the organization which is a
very essential factor for the organization. There are a lot of technological changes in the market
which have to be made so that they can have a better functioning. There are a lot of options
which are there in front of the organization and the decisions have to be made accordingly so that
they can get a competitive advantage. Marks & Spencer has a brand value in the organization
which they have to maintain and the standards of the organization have to be kept up so that the
organization has a better functioning. The competitors are taking out same products or similar
products in the market which has to be overcome by the organization so that they can have stable
competition for themselves for a long run in the market (Oyewobi, Windapo and Rotimi, 2016).
The suppliers in the market also increase their prices in the market according to the competitors
and buyers which has to be controlled by the organization so that they can have a better
functioning. This will help the organization to have a better functioning for them and the
organization will be able to plan for the future effectively. It is very important for the
organization to make decisions according to the employees, customers, suppliers and other who
are related to the organization directly or indirectly.
CONCLUSION
From the above report it can be concluded that there is a need for organizations to have
an effective strategy for themselves which they can formulate by analysing the competitive
strategies like SWOT, PESTLE and five forces. These strategies of competitiveness not just

explain the competition in the market but help the organization to plan their objectives and aims
accordingly.

REFERENCES
Books and Journals
Dombrowski, U., Krenkel, P. and Wullbrandt, J., 2018. Strategic Positioning of Production
within the Generic Competitive Strategies. Procedia CIRP, 72, pp.1196-1201.
Helmold, M., Terry, B. and Hummel, F., 2020. Tools for Negotiations. In Successful
International Negotiations (pp. 173-182). Springer, Cham.
Oyewobi, L.O., Windapo, A. and Rotimi, J.O.B., 2016. Relationship between decision-making
style, competitive strategies and organisational performance among construction
organisations. Journal of Engineering, Design and Technology.
Schuetz, C. G. and Schrefl, M., 2017, November. Towards formal strategy analysis with goal
models and semantic web technologies. In International Conference on Conceptual
Modeling (pp. 144-153). Springer, Cham.
Smith, P., 2018. Competitive Strategies of Minority-Owned Small Businesses. pdf.
Vargas, J.G. and Sierra, S.C., 2019. Influence of Information Technologies on Competitive
Strategies for SMES. Srusti Management Review, 12(1), pp.1-13.