HI6006 Competitive Strategy: Application of Strategy Tools in Business

This essay provides a comprehensive analysis of competitive strategy, focusing on the application of various strategic tools. It delves into Value Chain Analysis, using Apple as an example to illustrate inbound logistics and competitive advantage. The essay also examines Ansoff's Matrix, exemplified by Cadbury's market penetration and diversification strategies. Furthermore, it discusses Porter's Five Forces, referencing Coca-Cola to demonstrate competitive dynamics and the power of buyers and suppliers. Finally, the essay explores SWOT Analysis, using Blackberry as a case study to highlight strengths, weaknesses, opportunities, and threats. The analysis emphasizes the importance of these tools in achieving organizational goals and maintaining a competitive edge in the market.

ompetiti e trateC v s gy

ompetiti e trateC v s gy
Strategy Tools
Value chain analysis
It is one of the popular strategy tools which are considered to evaluate the internal
activities of the company. The aim of the analysis is to consider the activity which are valuable
to the company and which helps to improve the overall competitive advantage. Also, by focusing
on the internal activities, the evaluation states that competitive advantage can be analyzed easily.
If comparison is made with the competitors it has been seen that the firm can easily differentiate
the products and services in an effective manner (Vicentini, Brunetta and Capo, 2017).
Value chain shows all the internal operations which are considered by the company to
produce goods and services. Value chain focuses on the primary activities that add more value to
the final products and also give assistance to the overall operations in indirect manner. It has
been examined that primary activities add value to the overall process of production and it is
important to support the overall activities. Competitive advantage can be achieved with the help
of technologies which are new in the market. It has also been analyzed that primary activities are
considered as the source of cost advantage where the entire cost can be identified by focusing on
the activities ((Jarzabkowski and Kaplan, 2015).
Value chain of Apple
The inbound logistics of apple focuses on the suppliers and also it has been seen that
company emphasizes on maintaining the supply chain management. Also the commitment is
given in context to purchase that will help to cover the requirements of the entire period up to
150 days. The economies of scale are also considered in the inbound logistics of the company.
Also the activities of the company are managed by more than 123, 0000 workers (Khan, Alam
and Alam, 2015).
The outsourcing of the activities is done in many locations by focusing on low cost of
resources. It has been seen that warehousing and also distribution of the cell phones is considered
so that profits can be earned. The products are offered by the company through online platform
and also from the retail stores.

ompetiti e trateC v s gy
Ansoff analysis
This is one of the effective strategies which are also known as corporate growth strategies
that can assist the company to focus on the products and services. This strategy is essential as it
assist to achieve large market share and also focuses on maintaining goodwill in the market. It
has been seen that top management focuses on this strategy so that it can be easy to manage the
entire activities of the company (Rothaermel, 2015).
This tool consists of four elements which are market penetration, product development,
diversification and market development. Market penetration relates to the overall success that
can be attained by considering the products exist in the market. Also market development takes
place by considering the overall target market so that products and services can be introduced in
the market. Product development also emphasizes on the products that should be considered
according to the new segment of the market so that positive outcome can be achieved in an
effective manner (Johnson, 2016).
Example of Cadbury
It has been examined that in Cadbury, market penetration is considered as the important
factor. This tool assists to capture the market share and also helps to focus on new customer
base. The company has also considered the market penetration by focusing on the annual sale of
the company. The company also introduced various flavors in the chocolate segment like bubbly
chocolate. Also in Diversification Company focused in considering the new categories that can
be related to recent portfolio. It can also help to penetrate in an effective manner by focusing on
the goals and objectives.
Porter five forces
It has been examined that this tool is considered by many organizations in the present era.
This tool helps to accomplish overall goals and objectives of the company and shows the right
path that can help in achieving profits. With the help of this tool the company can easily focus on
the strategies which should be considered so that negative impact can be reduced. There are five
parts of this tool which is considered by the company so that overall targets can be attained
(Hanson et al., 2001). It is important for the company to accomplish targets so that proper
goodwill and profits can be maintained in the competitive market. This tool analyzes the

ompetiti e trateC v s gy
competitors present in the market and also shows the ways that should be considered so that
competition level can be minimized (Piercy, 2014).
(Source: Research Methodology, 2018).
Example of Coca Cola
By focusing on this development tool it has been examined that this is helpful for the
marketers as through this it can be simple to attain goals and objectives. There are many
competitors of the company who are threat for the company so it is essential to focus on proper
management of the competition level. It also been examined that power of buyers are high as
there are many customers who are purchasing the same substitute products.
Supplier of the organization is low as there are few suppliers who are offering products
in the market. This tool is considered by the director of the company so that it can be easy to
analyze the external market. By analyzing the external market the company can easily consider
the strategies that will help to attain profits and growth in the competitive market.

ompetiti e trateC v s gy
SWOT Analysis
This tool is important for the companies as it helps to attain the positive outcome. The
internal environment is evaluated in this tool. SWOT Analysis is considered as the strategy tool
that helps the companies to analyze the factors that affect the operations. Through this tool
proper analysis can be made of the factors in context to internal environment.
This tool helps to manage the activities of the company and also focuses on managing
the resources of the organization. SWOT analysis is a critical evaluation that impacts the level of
productivity of the company. There are four aspects which are related with this tool like
strength, threats, weakness and opportunities. It is necessary for the company to emphasize on
these factors so that in right direction the activities can be completed (O'brien, 2015).
Example of blackberry
The company is one of the largest and popular companies in the competitive market. The
strength possessed by the company relates to brand image in the market and also with the quality
services offered by the company to its customers. Weakness possessed by the company relates to
distribution channel. The parts of the products are not available in the market which creates a
hindrance for the company to grow in the market.
The customer also does not prefer this brand because of the parts which are not available
easily in the market. There is also lack of communication which affects the competition level in
the market. The opportunities that can be grabbed by the company relate to the market share that
can be taken into consideration if effective distribution channel is maintained by the company.
Also it is important for the company to minimize the threat from the competitors so that goals
and objectives can be attained in the market.

ompetiti e trateC v s gy
References
Hanson, D.J., Dowling, P.J., Hitt, M.A., Ireland, R.D. and Hoskinson, R.E., 2001. Strategic
management: Competitiveness and globalisation. Nelson Thomson Learning, Melbourne, pp.
483.
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.
Khan, U.A., Alam, M.N. and Alam, S., 2015. A critical analysis of internal and external
environment of Apple Inc. International Journal of Economics, Commerce and
Management, 3(6), pp.955-961.
O'brien, J., 2015. Category management in purchasing: A strategic approach to maximize
business profitability. Kogan Page Publishers.
Piercy, N., 2014. Export Strategy: Markets and Competition (RLE Marketing). Routledge.
Research Methodology., 2018. Five force analysis. [Online]. Available at: https://research-
methodology.net/apple-porters-five-forces-analysis-3/. [Accessed on 30 August, 2018].
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Vicentini, F., Brunetta, F. and Capo, F., 2017. Building Organizational Insight: Strategy and
Organization. In Global Business Strategies in Crisis (pp. 43-56). Springer, Cham

ompetiti e trateC v s gy