Competitive Strategy Analysis: Resource-Based, SWOT, and Porter's

This report provides a comprehensive analysis of three key competitive strategy frameworks: the resource-based view, Porter's five forces, and SWOT analysis. It examines how these frameworks are utilized by modern organizations to gain a competitive advantage by analyzing both internal and external environmental factors. The resource-based view focuses on leveraging internal resources, while Porter's framework analyzes industry forces, and SWOT helps identify strengths, weaknesses, opportunities, and threats. The report illustrates the practical application of these frameworks through case studies of three global organizations: Walmart, Apple, and Amazon. For Walmart, the resource-based view and VRIO framework are applied to analyze its supply chain and operational effectiveness. Apple's broad differentiation strategy is examined through Porter's generic framework, highlighting its premium positioning. Amazon's strategic planning and market entry strategies are analyzed using the SWOT framework. The report concludes by emphasizing the importance of these strategic tools in organizational planning and decision-making.

Running head: COMPETITIVE STRATEGY ANALYSIS
COMPETITIVE STRATEGY ANALYSIS
Name of the Student
Name of the University
Author Note

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1. Introduction
The essay will be based on three different competitive strategy frameworks or tools
that are used by the modern organizations. The frameworks that have been taken into
consideration for this study in the essay are Resource based view framework, Porter’s five
forces framework and SWOT framework analysis. The tools or framework will be analysed
with the help of the examples of three global organizations that have implemented the
frameworks in order to analyse the external and internal environment based factors. The
resource based view and SWOT framework are mainly used for analysis of the internal
factors. On the other hand, Porter’s five forces framework is used for the analysis of industry
based aspects (Aguinis, Edwards and Bradley 2017).
2. Explanation of Resource based view framework
The resource based view is mainly a framework that is implemented for the purpose
of analysing the different strategic resources which an organization can use for the purpose of
gaining the competitive advantage. The focus of managers and their attention is thereby
shifted towards detail analysis of the internal resources that are gained by a firm in the
industry (Hanson et al. 2016). The effective identification of the competencies, assets and
capabilities of an organization are considered to be the most important part of the analysis
that is made with the implementation of this framework. The tool is also considered to be a
major part of the strategic planning process which is implemented by the modern
organizations (Baylis, Wirtz and Gray 2018).
The importance and proper use of resource based view can be effectively understood
by considering the example of Walmart which is a major retail organization. Global supply
chain of Walmart and the effectiveness of operations management of the firm can also be
analysed in a detailed way with the implementation of VRIO framework. Value chain of

2COMPETITIVE STRATEGY ANALYSIS
Walmart can also be analysed in detail after completion of VRIN framework. The resources
and capabilities of the organization can also be discussed with the proper use of this
framework (Bereznoi 2015).
Organizational capabilities and resources of Walmart,
Non-core competencies
Organizational
capabilities and
resources
V -
Valuable
R – Rare I -
Imitable
O -
Organization
N – Non-
substitutable
Non-core
competencies
Ease of access to
acceptable
human resources
Yes
Diversity in
product offerings
Yes Yes
Expansive set of
the private label
brands
Yes Yes
Huge potential of
package delivery
network
Yes Yes
Sustained
competitive
edge
Systems of
inventory
management
Yes Yes Yes Yes Yes
Strong value of
brand
Yes Yes Yes Yes Yes
Strong power of
bargaining
Yes Yes Yes Yes Yes
Huge supply
chain on global
basis
Yes Yes Yes Yes Yes
Majority of e-
commerce
operations
Yes Yes Yes Yes Yes
Extensive access
to the consumer
data
Yes Yes Yes Yes Yes

3COMPETITIVE STRATEGY ANALYSIS
Data mining
capabilities and
data analytics
Yes Yes Yes Yes Yes
The competencies of Walmart that have been developed in the retail industry are
divided into two types that include non-core and core competencies. The access developed by
Walmart towards proper usage of natural resources is also a major factor that can influence
the operations of the organization. Non-core based competencies that are gained by Walmart
have low value in comparison to core competencies of the firm (Walmart.com 2019). The
organizational system and value of the brand is however an important part of the
competencies that Walmart has been able to form in order to sustain its operations in retail
industry. Core competencies of the firm cannot be copied by the other firms and they can
help the organization in gaining dominance in the particular industry (Walmart.com 2019).
3. Explanation of Porter’s generic framework
The Porter’s generic framework and the strategies have the ability to describe various
methods that can be implemented by the firm so that it can gain a competitive benefit in the
market. Various types of strategies can be implemented for the purpose of fulfilling the
demands and needs of the consumers in the industries (Grant 2016). The companies can aim
at implementing one of the strategies or a combination of the strategies for the purpose of
gaining competitive benefit in the industry. The different strategies that can be implemented
by different modern organizations include cost leadership strategy, focus strategy and
differentiation strategy (Daspit et al. 2017).
The implementation of cost leadership strategy is mainly based on processes that can
be used by the firms by reducing the prices of different products that are offered to the
consumers. The differentiation strategy on the other hand is mainly based on the capabilities

4COMPETITIVE STRATEGY ANALYSIS
of products or services that are developed by the company for gaining a competitive
advantage in the industry. The differentiation is mainly based on quality of the products that
are offered to the consumers and various benefits that are gained by them as well. Focus
strategy can be related to the strategy that is implemented by an organization for attracting
consumers who belong to different groups and have different preferences as well (David and
David 2016).
The example of Apple can be taken into consideration for the purpose of analysing the
ways by which generic strategies can be implemented by the organizations. Apple has
implemented the broad differentiation strategy for the purpose of developing a premium
position in the smartphone and technology industry. The development of premium value is
considered to be highly vital for an organization like Apple to maintain the high value based
consumer groups in different parts of the world (Apple.com 2019).
The competitive advantage has mainly been gained by Apple in the industry with the
support that is provided by quality of the products and benefits that are offered to the
customers as well. The strategy of broad differentiation has been able to provide a major
position to Apple in technology industry and a loyal customer base has also been formed in
the process. The high quality products that are provided by Apple are based on the
implementation of innovation and high end technologies (Apple.com 2019).
4. Explanation of SWOT framework
SWOT analysis framework can provide support an organization so that it is able to
identify various mistakes that have been made in the operations. The framework is considered
to be a major part of the strategic planning and marketing based activities that are
implemented by the organizations for the purpose of entering a new country or market. The
operations of the organization can be relevant in the market by effective use of the

5COMPETITIVE STRATEGY ANALYSIS
framework. SWOT framework can be implemented for the purpose of analysing the
operations of Amazon.com in the industry (Doz 2017).
Strengths – Amazon has been able to develop a strong brand name in the retail
industry with the help of its diverse range of products. The proper diversification of business
activities has been able to influence the leadership place of the firm. Amazon has proved to
be a major disaster in the industry and has implemented technological innovations for
ensuring its growth (Amazon.com 2019).
Weaknesses – Amazon has implemented an imitable business model and this has an
adverse impact on the competitive benefit of the firm. The lack of physical stores or brick and
mortar based stores is also considered to be a major weakness that is faced by Amazon.
Physical retailers have provided huge competition to Amazon in the industry. Walmart is
considered to be a major competitor of Amazon in the retail industry that can have an
influence on the profitability levels and revenues gained by the organization (Amazon.com
2019).
Opportunities – Amazon.com can use the opportunities to enter the developing areas
or emerging countries. The development of physical stores can also enhance the growth of
Amazon in the future. The partnerships which are made with different organizations that are a
part of the developing markets can influence the processes and activities of Amazon
(Amazon.com 2019).
Threats – Amazon has been facing aggressive competition from other firms in retail
market based on similar products that are offered to the customers. The organization also
faces issues related to security due to the increase in cybercrime cases in different parts of the
world (Hitt, Ireland and Hoskisson 2016).

6COMPETITIVE STRATEGY ANALYSIS
5. Conclusion
The essay can be concluded by stating that the strategic frameworks and tools that
have been taken into consideration for study in the essay including SWOT framework,
Porter’s generic strategies and resource based framework can help the organizations to
understand their operations in respective industries. The strategic plans of organizations can
be developed with the implementation of these tools in an effective manner.

7COMPETITIVE STRATEGY ANALYSIS
6. References
Aguinis, H., Edwards, J.R. and Bradley, K.J., 2017. Improving our understanding of
moderation and mediation in strategic management research. Organizational Research
Methods, 20(4), pp.665-685.
Amazon.com 2019. Go to website. [online] Amazon.com. Available at:
https://www.amazon.com/gp/navigation-country/select-country [Accessed 22 Aug. 2019].
Apple.com 2019. iPhone. [online] Apple. Available at: https://www.apple.com/iphone/
[Accessed 22 Aug. 2019].
Baylis, J., Wirtz, J. and Gray, C. eds., 2018. Strategy in the contemporary world. Oxford
University Press, USA.
Bereznoi, A., 2015. Business model innovation in corporate competitive strategy. Problems
of Economic Transition, 57(8), pp.14-33.
Daspit, J.J., Chrisman, J.J., Sharma, P., Pearson, A.W. and Long, R.G., 2017. A Strategic
Management Perspective of the Family Firm: Past Trends, New Insights, and Future
Directions. Journal of Managerial Issues, 29(1).
David, F. and David, F.R., 2016. Strategic management: A competitive advantage approach,
concepts and cases. Pearson–Prentice Hall.
Doz, Y.L., 2017. Strategic management in multinational companies. In International
Business (pp. 229-248). Routledge.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley &
Sons.

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Hanson, D., Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management:
Competitiveness and globalisation. Cengage AU.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management: Concepts and
cases: Competitiveness and globalization. Cengage Learning.
Walmart.com 2019. Walmart.com | Save Money. Live Better.. [online] Walmart.com.
Available at: https://www.walmart.com/ [Accessed 22 Aug. 2019].