Holmes Institute Competitive Strategy: Strategy Development Essay

This essay analyzes three key strategy development tools: Porter's Five Forces, Ansoff Matrix, and SWOT analysis, providing practical applications to current business examples. The essay begins by defining strategy development tools and their importance, followed by an in-depth examination of Porter's Five Forces, using Amazon as a case study to illustrate how the model helps analyze industry competition. The Ansoff Matrix is then explored, with Tesla as an example, showcasing how it aids in making strategic decisions regarding market penetration, product development, and diversification. Finally, the essay covers SWOT analysis, using Ford as a case study, to demonstrate how it helps companies assess their internal strengths and weaknesses, as well as external opportunities and threats, to formulate effective strategies. The essay concludes by summarizing the importance of these tools in helping companies understand their environments and develop competitive strategies for success.

Management
Competitive Advantage
Students name
8/13/2019

Competitive advantage 1
Strategy development tool mainly highlights about the various strategies techniques, which
mainly helps in facilitating, researching, analyzing and mapping the organizational competencies
or the abilities to achieve the future objectives (Berisha, et al, 2017). These processes mainly
highlight about the organizational processes, technologies, business development and the people
capabilities. Hence, this entire process fills the gap in between the strategic, tactical and
operational aspects of the organization (Ansoff, et al, 2018).
Five force model of Amazon-
Porter’s five-force model is an analytical framework, which mainly represents the five aspects
that helps the organization in shaping the overall competition of the industry.
Firstly, threat of the new entrant highlights about the industry entry barriers which portraits about
the potential new market entrant, on the bases of their competitive advantage, innovative
features, capabilities in features and service offerings majorly affects the industry entry barrier
and the absence of switching cost for the customers also increase the threat of the new entrant.
Amazon has a major threat of new entrant as with time the online shopping in much more trendy
(Jussani, et al, 2015).
Secondly, bargaining power of the buyers mainly highlights about the customers power as they
can anytime switch to the substitute products and services and such abilities of the buyer
generate the highly intense competition in the marketplace. Similarly, in Amazon case, certain
electronic devices such as fire tablets, fire TV having a higher substantial bargaining power due
to the high competition level among companies.
Bargaining power of the suppliers mainly highlights about the diversity of the business and the
companies diversity of the business and the companies exercising power within the marketplace.
In amazon context, the bargaining power of the amazon suppliers are low because the number of
suppliers are more, they need to follow the code of conduct and should generate the fair and the
ethical treatment. Hence, in this the suppliers’ forward integration is difficult. Therefore, this
proves that amazon can easily switch to the other suppliers as they have several options to
choose (Jussani, et al, 2015).
Threat of substitutes in terms of amazon is very high as there are numerous other brands which
also deals in the inline retail business, other than this, general people also buy various of

Competitive advantage 2
products from the physical stores or the retailers. The only major competitive advantage of
Amazon Company is very strong as they provide the excellent customers services apart from the
quality or the brand name. In this threat of substitute is high because the customers can mainly
switch from brand to other.
Lastly, rivalry among the industry mainly highlights about the number of other players, which
generates high competition among the companies. Rivalry is intensified in the retail industry by
many factors such as market share and creating competitive pressure. In term of amazon, Costco
and Wal-Mart the biggest rivalry companies which provide same services and product as
amazon. Hence, it is seen that in near future, the level of competition will keep on continuing for
amazon (Jussani, et al, 2015).
Ansoff Matrix
Another strategy development tool, highlights about the ansoff matrix mainly target the four
major aspects such as market penetration, product development, market development and lastly it
talk about the diversification aspect so that knowing about them, company can easily make the
strategic decisions (Bock, et al, 2016).
Market penetration is a strategy, which mainly highlights about the existing products in an
existing market. As such, the tesla company mainly applies strategy because they mainly focus
on selling their various models in their own country as well as other 29 countries too. Their
products lists mainly comprises of solar panels, racking, electric hardware and other monitoring
devices and much more.
Product development is another strategy, which highlight within ansoff matrix, which mainly
talks about development of new products, which would be sold in existing market. In this case,
tesla is less engrossed in this activity which highlights that tesla frequently make the new
products. This is all because of higher cost, which is charged in electric vehicles and power
storage sectors.
Market development is also one of the strategies of the ansoff matrix, which mainly highlights
about finding new market for the existing products. As, tesla is thinking of making a new market
entry in which they are targeting India on first number in which they are making various
strategies and accordingly the various appropriate decisions which will further benefit the

Competitive advantage 3
company in longer run. Hence, all this will make India as the third-largest auto maker in the
world by 2020.
Lastly, the company mainly highlights about the diversification aspect, in which business thinks
of developing the products to launch them in the new market. In earlier times Tesla had applied
the diversification strategy but a minimally growth was seen. Hence, for more growth, tesla
mainly focused on the market penetration and product development strategies in order to grow its
automotive and energy solution businesses. Other than this, another strategic objective which
tesla is using these days for its continual growth is acquiring other firms or entering into joint
ventures to develop an entirely new product and generate success for the longer time (Cameron,
& Green, 2015).
SWOT Analysis
SWOT analysis is also one of the strategic tool to which company by using it gather information
about and from the market and later by applying them they make various strategic decisions
which helps the business houses to build strategies and generate the organization success for
longer run. This strategy mainly highlights about the strength, weaknesses, opportunities and
threats. As strength and the weaknesses defines about the internal aspects of the companies
which the company is facing and opportunities and threats are the external aspect which
companies grasp and work over it to reduce them (Lüttgens, & Diener, 2016).
Ford one of the well-known manufacturing companies, which mainly deals in automobile aspects
with the most profits earned through the North American segment. Hence, from this, we got to
know that it is the fifth largest automobile manufacturer in the world. Hence, SWOT of ford
highlights that-
Strength of ford highlights about the global recognition which states that it is one of the well-
known automobile company, this is all because of its success in marketing and due to its
advertisement feature. It brand value till date is $12.74 billion. Other than this, they also have
diverse offerings aspect in which according to the demographic aspects they provide various
diversified brands and car models. As they give more preferences to the customers’ needs, wants,
and work over providing more varieties in car and commercials vehicles (Diakaki,et al, 2015).

Competitive advantage 4
Other than this, company also carries a huge networking in terms of operations and distributions;
there are around 62 countries in the world where they sell their manufacturing items, along with
this, they also develops cars on standardized procedures. Lastly, adoption of the newer
technologies and boost and enhance the product quality every time.
Weaknesses of ford highlights that ford mainly depend on US and European market in which
they mainly limit its profits and revenues. Other than this, ford also have weak foothold in which
majorly lacks focus in performance and productivity. Hence, this highlights that Ford do not
have stronghold in emerging market like India. Lastly, due to the poor reputation as compared to
the European and Japanese rivals ford has lost it many customers, which has majorly affected
reputation at large (Candelo, 2019).
Ford opportunities mainly highlights about the increase customers base in which they are
practicing on penetration strategy through this, they are tapping India as well as china for their
financial growth as well as incrementing their reputation. Other than this, by making use of
digital marketing, ford has an opportunity to work on their digital marketing skills to grow its
customers and suppliers engagements. Lastly, they are trying to be technologically adaptive as
they are trying to produce the fuel efficient as well as commercial vehicles (Broman, & Robèrt,
2017).
Ford threats majorly talks about higher competition in which they face the cutthroat competition
from its rivalry companies like tesla, Honda and Tata. All these companies keep on innovative
something new in order to be on number one position in the market. Hence, competition is one of
the major threats, which Ford faces. Other than this, the increments in the prices of raw materials
are also a major threat, which mainly affects the companies, cost and the profits margins at large.
And lastly, regulation and compliances has also increased in last few years and in this case, ford
faces the serious challenges while complying the new rules and the regulations (Altaf, & Khalil,
2016).
Conclusion-
From the above essay, we can conclude that there are numerous ways through which many
companies can got to know about the environmental aspects and accordingly they can set the
various strategies for their success generation. This all can be done through the adoption of

Competitive advantage 5
pestle, porters five force model, SWOT analysis and ansoff matrix model. These all majorly
highlights about the internal as well as external market aspects and accordingly the companies
set their various competitive strategies in order to generate more success than its competitors did.
Similarly, amazon five forces helps them to know about the market such as suppliers, customers,
substitutes and much more. Then, Tesla through Ansoff matrix got to know about the strategies
which they can use for their success and lastly, ford applied SWOT to know about their internal
and external affairs and accordingly they can set various strategies to win over their competitors.

Competitive advantage 6
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