Competitive Strategy Analysis of Australian Businesses: HI6006

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HI6006 COMPETITIVE STRATEGY
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Competitive Strategy
Every organization is trying to extent the boundaries of the business in this era of
globalisation. For fulfilling its primary objectives the there are two basis task that the
organizations need to undertake these are satisfying the aspirations of the
consumers and fighting the competition in an attractive manner. Competition is a
factor that hampers the operations of an organization the most. It is extremely
essential for the managers of every organization to formulate some strategic plans
that can help the organization in responding to the competition in attractive manner.
In this modernised world there are a number of competitive strategy development
tools that can assist the organization in handling competition (Aldehayyat and Maan,
2013). These tools assist the firm in evaluating the policies of the competitors and
comparing them with their own. With the help of these tools the managers will be
able to undertake the process of planning and decision making in the most effective
manner. Some of these tools are explained underneath in regards of some
renowned organizations:
SWOT Analysis “Park Hyatt”
SWOT analysis is a technique in which the manager tries to evaluate the strength,
weakness, opportunities and threats aligned with an organization. With the help of
this process the managers are able to scrutinise the major factors that can affect the
operations of the organization and can impact its functioning. With the help of this
process the managers are able to analyse the current changes taking place in the
organization. This helps the managers in scrutinizing the factors that can impact the
productivity of the organization. Park Hyatt is one of the most known hotels of
Australia. The organization is currently involved in the practice of extending its
boundaries to the international market. The company have opened its franchise in
number of countries apart from Australia and is successfully handling the operations
there. For promoting the growth of the organization it is extremely essential for the
managers to scrutinize the key challenges and opportunities of the organization and
frame policies to overcome them. With the help of SWOT analysis the mangers of
the firm will be able to frame decisions and will be able to enhance the goodwill and
proficiency of the organization. With the help of SWOT analysis the managers are
able to discover that the major strength of Hyatt is its loyal customer base and good
brand name in the market. With these strengths the managers are able to enhance
its market area in international market. Aside to this the mangers are likewise able to
scrutinise the major weaknesses of the firm which are limited market share and
major dependence on US market (Aykan and Aksoylu, 2013). These are the major
barriers in the growth of the firm and thus the managers need to undertake effective
plans in order to promote the growth of the market. SWOT analysis likewise helps
the manager of Hyatt in analysing the major threats associated with the organization.
Competition is the major threat of the firm and aside to this adverse geo-logical
conditions and actions of terrorist likewise affects the functions of the association.
With the help of this factor the managers will be able to formulate effective policies
regarding the concerned challenges (van Wijngaarden et. al., 2012).
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Five Forces Analysis “Commonwealth bank of Australia”
Five forces analysis is a part of competitive strategy tools. It was proposed by
Michael Porter. As per his views there are five forces that have a significant impact
over the functioning of the organizations. These five forces are entry of new firms,
bargaining power of buyers and suppliers, substitute products and rivalry among
partners. It is the duty of the manager to analyse all of these activities in order to
execute effective planning and decision making process. Commonwealth bank of
Australia is a famous multinational financial institution that works across New
Zealand and US. The managers of the respective firms have increased their level of
operations over the last few days. With the help of this model the managers will be
able to scrutinize the policies of new entrants in the same market. With the effect of
this model they will be able to frame effective decisions in order to enhance their
proficiency like they can involve in the activity of reducing the cost, adopting lower
pricing strategy, initiating new values and so forth. All of these plans will help the firm
in developing the boundaries to international market. Aside to this the respective
model will help the firm in evaluating the bargaining power of buyers and suppliers.
This will help the managers in formulating strategies regarding supply chain of the
organization. With the help of this factor the managers are likewise able to evaluate
the raw material needs of the firm. By evaluating the bargaining power of buyers the
managers of commonwealth bank will be able to build large base of consumers and
likewise be able to introduce new and innovate services in the market. All of these
strategies will help the attracting the consumers and fulfilling their aspirations.
Launch of new and innovate services will help the managers of bank in reducing the
defection of existing customers. These strategies will help the firm in handling
competition and enhancing the growth of the organization. The respective model
likewise helps the firm in framing strategies regarding the substitute services
available in the market. Analysing all of these factors can enhance the chances of
growth for the firm and likewise helps in enhancing the level of profitability and
sustainability (Yunna and Yisheng, 2014).
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Ansoff Matrix “Wesfarmers”
Ansoff model is proposed by Igor Ansoff, for handling the present and potential
products offered by the organization. Under this model a matrix is prepared that
helps the organization in managing their products in the most effective manner. The
products are managed with the help of two factors that are new product and existing
product. Both of these factors help the managers of the organization in managing the
level of production in the organization. The products are managed on the basis of
four combinations that are market penetration, market development, product
development and diversification. All of these combinations help the managers of
Wesfarmers in reducing the risk and uncertain factors from the production and
supply department of the organization. Wesfarmers is an organization that deals in
agricultural based products such as chemicals, fertilisers and so forth. The
respective model will help the managers off the firm in handling the supply chain of
the organization. The managers will be able to check the penetrations of the product
and will likewise be able to classify the level of raw material they require in the
organization. With the help of this model the organization will be able to analyse its
basis aims and objective and will likewise be able to frame policies regarding the
same. The managers will be able to create a risk aware culture in which all the
employees will be able to work in a flexible environment and will be able to react as
per the demand of the situation. The respective model will provide a competitive
advantage to the association and will promote its sustainability (Hussain et. al.,
2013).
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PESTEL “Accor Hotels”
PESTEL is one of the most utilised and effective tool among the entire competitive
strategy tool. With the help of this model the organization is able to analyse a
number of factors that can impact the functioning of the organization on micro and
macro level. Accor is a reputed organization of Australia based on the operations of
hospitality. With the help of this model the managers will be able to scrutinize all the
political, environmental, legal, social and technological factors that can affect the
functioning of the organization in positive and negative manner. Currently Accor has
extended its boundaries to international market and is not operating in about 140
countries (Santos-Vijande, López-Sánchez and Trespalacios, 2012). With the help
of PESTEL the managers of the firm are able to analyse that technological factors
affects the functioning of the association the most. In this era all the organization are
taking assistance of technical mediums for enhancing the boundaries of the
business. All the competitors of the respective firm are moving their business to
online mediums and trying to make use of online websites in order to handle the
operations of the firm. This effects the functioning of the organization the most and
can hamper the efficiency a lot. With the assistance of respective model the
managers of Accor will be able to analyse this factor and can frame policies in the
concerned direction. They can likewise prepare their own official website by which
they can handle the operations of the organization. The website can be utilised for
the factors like online booking and payment. This will not only help in enhancing the
efficiency of the organization but will likewise help in providing a competitive
advantage to the firm.
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References
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