Competitive Strategy Report: Examining Key Strategic Tools Usage

This report provides an overview of competitive strategy and examines the use of strategic tools such as SWOT analysis, Porter's Five Forces model, PESTLE analysis, and the Ansoff strategy. The report uses examples of companies like Blackberry, Tesco, Samsung, and Cadbury to illustrate the application of these tools. SWOT analysis helps in evaluating internal strengths and weaknesses as well as external opportunities and threats. Porter's Five Forces model aids in understanding the competitive intensity of an industry. PESTLE analysis focuses on macro-environmental factors, and the Ansoff strategy helps in identifying growth opportunities. The report concludes that these tools are essential for companies to evaluate their market position and enhance their competitive advantage, leading to improved growth and profitability. Desklib provides access to this and other solved assignments for students.

Competitive strategy

Competitive strategy
Executive summary
Strategy tools are important for the companies as it helps to evaluate the overall position in the
competitive market. It also helps to evaluate the competitors prevailing in the market. So, it is
important for the company to focus on the development tools so that accurate decisions can be
taken which are beneficial for the company. In this report, the focus will be given on the four
Strategy tools. It usage will be discussed by considering the example of different companies.
These are the strategic tools, on which the company should focus so that it can be easy to boost
the overall activities and also it can be easy to analyze the internal and external factor prevailing
in the workplace or in the market.
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Competitive strategy
Table of Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................1
SWOT ANALYSIS.........................................................................................................................1
Blackberry Example.....................................................................................................................2
Porter five force model....................................................................................................................2
Tesco Example.............................................................................................................................2
Pestle analysis tool...........................................................................................................................3
Samsung example........................................................................................................................4
Ansoff strategy.................................................................................................................................5
Cadbury Example.........................................................................................................................5
Conclusion.......................................................................................................................................6
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Competitive strategy
Introduction
In the business world, there are various strategy development tools which are necessary to be
considered so that activities of the company can be completed with efficiency. These tools help
the company to attain the competitive advantage and also growth in the market. The issues are
one of the common factors which are analyzed in the workplace but by considering these tools it
can be easy for the company to minimize the issues. So, the four strategy development tools
which will be discussed in the paper are SWOT ANALYSIS, PESTLE, FIVE FORCE Analysis
and Ansoff strategy.
SWOT ANALYSIS
This is a tool which should be considered by the company so that the factors related to strength,
weakness, opportunities and threats can be evaluated. The SWOT analysis is a method that can
assist the company in considering the right decisions which are beneficial for the company in the
competitive market. Strength and weakness are considered as the internal aspect of the company
and threats and opportunities are related with external factors (Shabanova et al., 2015).
With the help of these tools it can be simple to control the entire resources of the company. It is a
tool that can also help in maintaining the overall productivity level of the company. It is
important for the company to emphasize on these factors in the strategy tool as it can help in
considering the right direction (Elmes and Barry, 2017).
Blackberry Example
The strength of the company is related with large market share. By having large market share it
can be easy to maintain the brand image and also the quality of the products offered in the
competitive market. The weakness which is related with the company is distribution channel.
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Competitive strategy
There are many parts offered by the company which are not available in the market and it also
affects the overall growth of the company in the market.
The preference is not given by the customers as the products are not easily available in the
market. So, it affects the growth of the company. Lack of communication is also one of the
aspects which impact the competition level prevailing in the market. The company can also grab
the opportunity prevailing in the market like large market share can be maintained by offering
discounts. The competition level is high is one of the threats of the company in the competitive
market (Steffen, 2017).
Porter five force model
In the recent era, this tool is considered by the many companies. With the help of this tool it can
be simple for the company to achieve the desired targets and also it showcases the right path to
achieve success. This tool emphasizes on the five aspects which is taken into consideration by
the company so that external environment of the company can be evaluated. The major factor
that can be analyzed with the help of this tool is related with the competition level prevailing in
the market (Johnson, 2016).
Tesco Example
This tool is useful for the marketers to analyze the overall competitive factors of the market.
 Bargaining power of the buyers
High rate of bargaining power is there as the buyers have the chance to buy the similar
products from their nearby outlets or stores.
 Bargaining power of the suppliers
It has been analyzed that the rate of the suppliers are low as there are various small stores
who are providing similar products in the market and the customers can easily purchase
the products from the stores.
 Threat of new entrants
It is high as small companies are entering into the market and providing similar products.
Also, by offering similar products the companies are not able to achieve the large market
share.
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Competitive strategy
Figure 1
(Source: Research Methodology, 2018).
 Threat of substitute
High substitution rate as the companies who are entering in the market are offering
similar products to the customers in the market.
 Rivalry among the firms
The rivalries of the company are Wal Mart, Target and Woolworths.
Pestle analysis tool
It is considered as one of the best strategy development tool that helps to focus on in-depth
analysis of the factors prevailing in the external market. With this tool it can be simple for the
marketers to analyze the macro environmental aspects. There are six factors according to this
tool: political, economic, social, technological, legal and environmental analysis.
These factors focus on the laws, inflation and deflation, rules and regulations of the government,
manufacturing cost and also the environmental factor (Jarzabkowski and Kaplan, 2015).
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Competitive strategy
Samsung example
Political factor
At the time of managing the overall activities the company focuses on considering the rules and
regulations. Like the company is found to be involved in the political scandals in South Korea.
Lee Kwang Jae and Uri party representative were working for the South Korean president.
Economic factor
South Korean currency is one of the aspects of this factor which has impacted the overall
revenue of the company. Like Samsung operating profits halved in 2008 and it is one of the
consequence of the global economic and financial crisis.
Social factor
The company considered the Glocal strategy so that preferences can be changed of the customers
in the niche market.
Technological factor
Company considered various approaches related to innovation by considering the technology so
that design of the products can be unique (Research Methodology, 2018).
Legal
The company faced various challenges in context to the heavy penalties for the alleged imitation
of the products of Apple. Like IPAD and also IPHONE has focused on beating the perception of
the customers at the time of taking approval of the strategies. Also, company considered various
lawsuits to manage the activities.
Ansoff strategy
This is also called as the corporate growth strategies which can help the organization to
emphasize on the products and services. With the help of this strategy it can be easy for the
company to boost the market share. There are four elements like market penetration, product
development, diversification and also market development (Gamble and Thompson, 2014).
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Competitive strategy
Cadbury Example
In context to Cadbury, market penetration is also one of the essential tools. With the help of this
tool it can be easy to capture the wide market share.
Market development
There are various flavors introduced by the company in the category of chocolate like Bubbly
chocolate.
Diversification
In relation to diversification the company emphasized on considering various new categories that
is related with the portfolio of the company and enhanced the market share in many countries.
Like gums and Cadbury bytes are the product diversification. Cadbury also focused on
penetration and enhanced the revenue and the products which come under this category are
perks, bournvita and Cadbury dairy milk.
It has been seen that to consider the diversification strategy is one of the clear idea that focus on
enhancing the market share and also the risks are minimized if the company focuses on this
strategy.
Conclusion
So, it can be concluded that by considering these tools it can be easy to offer the cutting edge to
the company. With these strategies the companies can easily evaluate the overall market share
and also the position in the competitive market. So, these tools should be considered so that
growth and profits can be enhanced of the company. Like SWOT, PESTLE AND PORTER
boost the overall market share of the company and also it helps in attaining the profits in the
highly competitive market. So, these tools are necessary to be considered as it can help in
managing all the factors in the competitive market
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Competitive strategy
References
Elmes, M. and Barry, D., 2017. Strategy retold: Toward a narrative view of strategic discourse.
In The Aesthetic Turn in Management (pp. 39-62). Routledge.
Gamble, J. and Thompson, A.A., 2014. Essentials of strategic management. Irwin Mcgraw-Hill.
Jarzabkowski, P. and Kaplan, S., 2015. Strategy tools‐in‐use: A framework for understanding
“technologies of rationality” in practice. Strategic Management Journal, 36(4), pp.537-558.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Research Methodology., 2018a. Five force analysis. [Online]. Available at: https://research-
methodology.net/apple-porters-five-forces-analysis-3/. [Accessed on13 December, 2018].
Research Methodology., 2018b.Pestle analysis. [Online]. Available at: https://research-
methodology.net/samsung-pestel-analysis-2-2/. [Accessed on13 December, 2018].
Shabanova, L.B., Ismagilova, G.N., Salimov, L.N. and Akhmadeev, M.G., 2015. PEST-Analysis
and SWOT-Analysis as the most important tools to strengthen the competitive advantages of
commercial enterprises. Mediterranean Journal of Social Sciences, 6(3), p.705.
Steffen, B., 2017. The physics of software tools: SWOT analysis and vision. International
Journal on Software Tools for Technology Transfer, 19(1), pp.1-7.
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Competitive strategy
Appendix
Growth rate of Samsung
(Source: Research Methodology, 2018b)
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