HI6006: Competitive Strategy Report - Strategy Development Tools

This report delves into the realm of competitive strategy, presenting a detailed analysis of four key frameworks: SWOT analysis, PESTLE analysis, Porter's Five Forces model, and the VRIO framework. The report begins by outlining the components and application of SWOT analysis, using IKEA and Wesfarmers as case studies to illustrate strengths, weaknesses, opportunities, and threats. Following this, the PESTLE analysis is explored, examining political, economic, social, technological, legal, and environmental factors influencing business performance, again with a focus on Wesfarmers and IKEA. The report then moves on to Porter's Five Forces model, evaluating the competitive landscape through the lens of bargaining power of customers and suppliers, the threat of substitution and new entrants, and the intensity of rivalry. Finally, the VRIO framework is applied to IKEA, assessing the value, rareness, imitability, and organizational capabilities of its resources and capabilities to determine its sustainable competitive advantage. The report concludes with a comprehensive list of references.