University Essay: Strategy Development Tools and Business Applications

This essay delves into the application of strategic tools in contemporary business organizations, emphasizing their utility in navigating complex market dynamics. It explores the practical use of PESTLE analysis for understanding external factors, five forces analysis for assessing industry competitiveness, SWOT analysis for identifying internal strengths and weaknesses, and generic strategies for achieving competitive advantages. The essay uses real-world examples such as Walmart, Apple, and Samsung to illustrate the application of these tools, providing a comprehensive overview of their benefits in designing effective strategic intents. The essay demonstrates how these tools aid in market analysis, competitive positioning, and the formulation of business strategies, thereby enhancing an organization's ability to adapt and succeed in a dynamic business environment.

Running head: COMPETITIVE STRATEGY
Competitive strategy
Name of the student
Name of the university
Author note

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Introduction
Strategic tools are having huge utilities for the contemporary business organizations. This
is due to the reason that in the current business state of affairs, there are number of factors be
considered by the organizations. However, on the other hand, it should also be noted that
different strategic tools are having different levels utilities and are applicable in different
business environments (Afonina, 2015). Thus, it is important for the business organizations to
have the fair understanding about the majorly used strategic tools in different external business
situations. This essay will discuss about the strategic tools such as PESTLE, SWOT, five forces
and generic strategies. In addition, the real world examples will be used for more effective
evaluation.
PESTLE analysis
In the current business scenario, it is much important for the business organizations to
have the fair understanding about the changing external business factors. Some of the major
external factors are political, social, economical and technological factors. In this case, pestle
analysis will be beneficial for the organizations. This tool helps in determining the political,
social, economical, technological, legal and environmental factors and will cover almost all the
major elements for the businesses (Kolios & Read, 2013). One of the major advantages of this
tool is simplicity in usage. This is due to the reason that pestle analysis can be used in any
business situations and thus is having alternate utilities. However, on the other hand, it should
also be noted that pestle is more static in nature and is ineffective in specific business situations.
Thus, the business organizations will have an overall and generalized view rather than having a
specific insight.

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For instance, Walmart is one of the leading retailers in the world. Initiation of the pestle
analysis will include determination of the political factors. Walmart is facing diverse political
scenarios due to the reason that different countries are having different political environments. In
addition, the diplomatic issues between the different governments are also posing challenges for
Walmart in their global trade. Determination of economical factors identified that Walmart is
benefiting from the rapid economic growth of the developing countries. However, with the time,
competition is increasing and is affecting the profitability of Walmart (Zalengera et al., 2014).
Determination of the social environment includes diverse taste and preference patterns of the
customers. It is important for Walmart to change their product strategy in accordance to the
change in the market trend. Determination of the technological factors identified the change and
evolution of the technology that will have impact on the business profile of Walmart.
Determination of the legal factors will further help in identifying the impact of the regulations
and legislations for the business operation (Islam & Mamun, 2017). Lastly, environmental
factors will helps in identifying the impacts of the green standards and initiatives in the business
operations. Thus, it can be concluded that pestle analysis will be beneficial for the business
organizations in determining this overall external factors.
Five forces analysis
Five forces analysis is being used in determining the industry competitiveness for the
particular sector. In the current business scenario, it is also important for to determine the
competitive scenario due to the reason the level of the competition is high in the current time.
This model is having major five elements that will help to determine the organizations in
identifying the intensity of different forces (Zhao et al., 2016). Apple will be used for
determining the utility of the five forces model. The first element of this model is the bargaining

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power of the buyers. This refers to the extent to which the buyers are having influence on the
pricing and other decisions of Apple. In this case, it is high due to the fact that buyers are having
larger options to choose from. In addition, end customers are the only way of revenue for Apple.
The second element is the bargaining power of the suppliers. This refers to the extent to which
the suppliers are having the influence on the decision process of Apple. They are heavily
depended on the suppliers for components and thus pricing of the components will determine the
pricing of Apple products (Yunna & Yisheng, 2014).
The next element is threat of new entrants, which denotes the extent to which Apple is
facing the threat of new entrants in the industry. This is low for them due to the reason that new
entrants will require huge investments and branding to match Apple (Indiatsy et al., 2014).
Threat of substitute is another element, which denotes the extent to which substitute products
will pose challenge for Apple. This is high for Apple due to the reason that there are number of
brands offering smartphones in the market. The last element is competitive rivalry that denotes
level of competition among the players. This is also high for Apple due to the reason that almost
all the brands are offering different offers to attract more customers.
SWOT analysis
Swot analysis is one of the most popular tools being used in the current time. This tool is
having four elements, which helps the business organizations in identifying the positive and
negative elements of the business (Yuan, 2013). Coles will be used for determining its utility.
The first element of this tool is strength, which refers to the advantages, Coles is having over
their competitors. Huge market coverage in Australia is one of the major strengths for them. The
next element is weakness, which determines the areas where Coles is trailing behind its

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competitors. Coles is having the weakness of limited global reach. The next element is
opportunities, which refers to the potential positive factors for Coles (Bohari, Hin & Fuad, 2017).
Entering in the developing countries will pose opportunities for Coles in increasing their
revenue. The last element is threat, which refers to the potential negative factors for Coles.
Emergence of economic recession will pose threat for Coles in the long term.
Generic strategies
The major utilities of using the Porter’s generic strategies are to identify the sources of
gaining competitive advantages and gaining more market share and revenue. According to the
Porter’s generic strategies, there are majorly three sources of gaining competitive advantages
available for the business organizations (Tanwar, 2013). Thus, this strategic tool is important for
the contemporary business organizations determining their sources of competitive advantages.
The three available sources are cost leadership, differentiation and market focus. Samsung will
be used as the example in evaluating this tool. Cost leadership refers to the strategy of reducing
the cost of operation and offering the products in minimal price possible. Samsung follows this
strategy for their mass market products and it helps them to further penetrate in the market and
cover larger market. Product differentiation strategy refers to the process of initiating distinctive
features to stay unique from the competitors (Teeratansirikool et al., 2013). With the help of this
strategy, the user experience of the products such as Samsung mobile phone is different from
their competitors. Market focus refers to the strategy of targeting a niche market and catering
only to them by offering according to their choice and requirements. Samsung do not follow this
approach as they are larger and extended target market.
Conclusion

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Thus it can be concluded that different strategic tools are having different set of utilities
for the business organizations. In this essay, the use of the real world examples helped in
identifies the benefits possessed by these tools. It is also identified that these tools can help the
business organizations in designing their strategic intent effectively for the future.

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