Holmes Institute: HI6006 Competitive Strategy Development Tools Essay

This essay provides a comprehensive discussion of four key strategy development tools: SWOT analysis, PESTEL analysis, Ansoff's Matrix, and Porter's Five Forces. The essay begins with an introduction that highlights the importance of strategic tools in improving business operations. The SWOT analysis section explains how organizations can identify their strengths, weaknesses, opportunities, and threats, and it uses Nike as a case study. The PESTEL analysis section examines the macro-environmental factors that impact a business, including political, economic, social, technological, legal, and environmental factors, again using Nike as an example. Ansoff's Matrix is then explored as a tool for growth strategies, looking at market penetration, market development, product development, and diversification, with Nike as an example. Finally, Porter's Five Forces model is presented as a means of assessing industry competition, including the bargaining power of suppliers and buyers, the threat of substitutes and new entrants, and competitive rivalry, using Nike as a case study. The essay concludes by emphasizing the positive impact of these strategic tools on business growth and provides a list of relevant references.

Running head: ORGANIZATIONAL BEHAVIOR
Organizational Behaviour
Name of the Student
Name of the University
Author note

1ORGANIZATIONAL BEHAVIOR
Introduction
The essay helps in identifying the different kinds of strategic development tools which
play a major role in improving the different activities which are performed by the companies
in order to identify the different issues or the advantages which can be gained by them and it
will be beneficial for the overall success of the firm in an accurate manner.
SWOT Analysis
It is considered as the respective strategic planning technique that is used in helping
the person or the organization in identifying the different strengths, weaknesses, opportunities
along with threats which is related to the business planning and the competition in the
business (Noe et al. 2017). Moreover, it is intended as to specify the different kinds of
objectives of the respective business venture or the project as to identify the internal or
external factors which can prove to be favourable and unfavourable for the business.
Strengths- It mainly focuses on the different kinds of characteristics of the project
which will help them in gaining competitive advantage over others (Laudon and Laudon
2016)
Weaknesses- It helps in analysing the different features of the business which is the
disadvantage in relation to the other competitors present in the market (Lasserre 2017)
Opportunities- It focuses on the different elements present in the environment which
could exploit the advantage of the company (Korableva and Kalimullina 2016)
Threats- It is inclusive of the different elements which can cause huge trouble for the
business or the project
For Instance- SWOT Analysis of Nike

2ORGANIZATIONAL BEHAVIOR
Strengths
It is one of the world’s number one shoemaker
It is one of the global brands
Weaknesses
Income of business heavily dependent on shares of footwear market
It is price sensitive
Opportunities
Product Development offers Nike different opportunities for success
Opportunity to develop products such as sunglasses or jewellery (Nike.com 2019)
Threats
Exposure to international nature of trade
Competition in the sports shoes market
PESTEL Analysis
It is considered to be the other strategic management tool which helps in identifying
the different kinds of macro-environmental aspects which can create huge impact on the
business and performance of the company (Karadag 2015). The respective tool is helpful
when starting a business or the other companies which are present in the market for many
years.
Political- It helps in determining the different factors wherein the government norms
and policies can affect the business in a positive or negative manner which includes the taxes
from government or stability in the economy (Hitt, Ireland and Hoskisson 2016).

3ORGANIZATIONAL BEHAVIOR
Economic- It includes the different determinants or factors of the performance of
economy which will be directly impacting the company (Harmon 2019). The rate of inflation
can impact the overall performance of the company and can create long term profound
impacts on business.
Social- It is inclusive of factors which will be beneficial in scrutinizing the social
environment of the market along with gauging the different kinds of determinants such as
demographics as well as trends (Haines 2016)
Technological- It is inclusive of the various kinds of technology related innovations
that can be beneficial for the overall success of the organization appropriately. The different
kinds of aspects include emerging technologies, research as well as innovative capabilities
(Gürel and Tat 2017).
Legal- It is inclusive of the different legal rules along with regulations wherein it can
affect the business in which it operates. The different kinds of laws include protection of the
customers and competitive regulations (Ginter, Duncan and Swayne 2018).
Environmental- It is inclusive of the different kinds of environment rules and
regulations which is inclusive of reduction in usage of the different gases along with
maximizing the different kinds of opportunities along with minimizing threats to the
company (Frynas and Mellahi 2015).
For instance- PESTEL Analysis of Nike
Political
Stable political environment and it is valuable for corporation
Nike is subject to different changes in tax along with manufacturing related laws

4ORGANIZATIONAL BEHAVIOR
Economic
Economic stability of developed markets is opportunity (Nike.com 2019)
Rapid growth of developing markets
Social
Opportunity for improving positive attitudes about leisure
Increased emphasis on the safety of products is opportunity
Technological
Rapid technological aspect is opportunity for Nike (Nike.com 2019)
Proper usage of the mobile technology is opportunity
Legal
Improving overall employment laws in different developing countries
Expanding health and safety regulations is opportunity
Environmental
Change in climate
Expanding the laws related to environment
Ansoff’s Matrix
It is the respective strategic management tool and technique which is essential and
applied to look at the different opportunities to grow revenue for the business with the help of
business through developing new products along with services (Dess et al. 2019).

5ORGANIZATIONAL BEHAVIOR
Market penetration- It mainly focuses on the different kinds of existing products or
the services to the customer base which is existing (Chang and Lin 2015)
Market Development- It is essential in analysing the different aspects through which
the companies can enter in new markets (Bailey et al. 2018)
Product Development- It is aspect wherein it is developing the different existing
products and services for the different kinds of markets (Anton et al. 2015).
Diversification- It is inclusive of diversifying in the other areas which can play a
major role in increasing the sales and revenue in the market
For instance- Ansoff’s Matrix of Nike
Market Penetration- Nike puts huge emphasis on the market penetration wherein
they will be penetrating their aspects in the new different segments which is beneficial for the
overall success of the company
Market Development- It is inclusive of the presence of Nike in different countries
through which it is helpful for them in increasing their market share
Product Development- Nike is increasing the different development of the products
which plays a major role in achieving maximum profitability in the market (Nike.com 2019).
Diversification- Nike has diversify the different activities in the different other
segments by keeping the costs high and invests lot of financial gain.
Porter’s Five Forces Model
It is defined as the tool wherein it helps in determining the different kinds of factors
and competition that can be a threat for the company negatively.

6ORGANIZATIONAL BEHAVIOR
Bargaining Power of Suppliers
It includes the different kinds of aspects wherein the strong power of bargaining can affect
the buying firms negatively
Bargaining Power of Buyers
It is inclusive of aspects in which the buyers will be receiving different alternatives and it can
affect brand image of other competitors
Threat of Substitutes
There can be inclusion of other substitutes present in the market and the buyers can have
different alternatives
Threat of New Entrants
There can be high or low threat for the new entrants when the organization has a strong
position in the market
Competitive Rivalry
It is the major determinant wherein the different buyers can substitute the products easily
with attractive pricing
For instance- Porter’s Five Forces Model analysis of Nike
Bargaining Power of Suppliers
High supply is weak
Moderate size of individual suppliers is moderate
Bargaining Power of Buyers

7ORGANIZATIONAL BEHAVIOR
Low cost of switching is opportunity and strong force
Moderate availability of substitutes
Threat of New Entrants
High cost of development of brand is weak
Moderate cost of performing business is moderate
Threat of Substitutes
Low switching costs is strong force
Moderate type of availability is moderate
Competitive Rivalry
Low market rate growth is strong force (Nike.com 2019)
High level of aggressiveness of the firms is strong force
Conclusion
Therefore, from the above, it can be inferred that strategic tools of development such
as SWOT, PESTEL, Porter’s Five Forces Model and Ansoff’s Matrix plays a major role in
improving the business operations of the company in positive manner which will be
beneficial for the growth.

8ORGANIZATIONAL BEHAVIOR
References
Anton, R., 2015. An Integrated Strategy Framework (ISF) for Combining Porter's 5-Forces,
Diamond, PESTEL, and SWOT Analysis.
Bailey, C., Mankin, D., Kelliher, C. and Garavan, T., 2018. Strategic human resource
management. Oxford University Press.
Chang, C.L.H. and Lin, T.C., 2015. The role of organizational culture in the knowledge
management process. Journal of Knowledge management, 19(3), pp.433-455.
Dess, G.G., McNamara, G., Eisner, A.B. and Lee, S.H., 2019. Strategic Management:
Creating Competitive Advantages. McGraw-Hill Education.
Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press,
USA.
Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018. The strategic management of health
care organizations. John Wiley & Sons.
Gürel, E. and Tat, M., 2017. SWOT ANALYSIS: A THEORETICAL REVIEW. Journal of
International Social Research, 10(51).
Haines, S., 2016. The systems thinking approach to strategic planning and management.
CRC Press.
Harmon, P., 2019. Business process change: a business process management guide for
managers and process professionals. Morgan Kaufmann.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management: Concepts and
cases: Competitiveness and globalization. Cengage Learning.

9ORGANIZATIONAL BEHAVIOR
Karadag, H., 2015. Financial management challenges in small and medium-sized enterprises:
A strategic management approach. EMAJ: Emerging Markets Journal, 5(1), pp.26-40.
Korableva, O.N. and Kalimullina, O.V., 2016, September. Strategic approach to the
optimization of organization based on BSC-SWOT matrix. In 2016 IEEE International
Conference on Knowledge Engineering and Applications (ICKEA) (pp. 212-215). IEEE.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Nike.com 2019 Nike. Just Do It. Nike.com (online) Retrieved from https://www.nike.com/
[Accessed on 25th April 2019]
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.