Development tools are considered as an important tool that help to achieve success in the market. In the competitive market, it is important for the company to consider these developmental tools so that profits and growth can be achieved effectively. The development tools which will be considered are Porter five force models, Resource-based view, and PESTLE and SWOT analysis.
Pestle analysis is considered as a framework that is considered in the early stages of strategy development to elaborate the landscape and environment in which the company can easily operate. This framework focuses on various factors related to political, economic, social, technological, environmental and legal. This tool is considered at the time of starting the business. It is considered as the tool considered in collaborating with analytical tools of the business so that proper understanding can be made of the situation and also focus is given on the factors related to internal and external (Hurlbert and Gupta, 2015).
These tools are considered by the managers so that risks arising in the environment can be analyzed and also the overall market situation is taken into consideration so that business can give tough competition to the other firms in the market (Geisler and Wickramasinghe, 2015).
Nestle is one of the biggest company that consider the policies which are implemented by the companies so that it can be simple to achieve competitive advantage prevailing in the market. The economic factor of the company focuses on the overall sale of the products and services and also on the consumption pattern of the employees. This factor helps in evaluating the market ranking of the company.
Through this company can easily know the actual position in the market. In social factor the company focuses on analyzing the taste of the customers so that demand can be considered. In technological factor the latest technologies is considered so that production can take place smoothly. Through this tool it can be easy for the management of the company to analyze the demand and achieve growth in the market (Jarzabkowski and Kaplan, 2015).
This framework emphasizes on the overall level of competition in context to a particular industry. It is beneficial at the time of starting a new business or at the time of entering into the new market. By focusing on this framework, it has been evaluated that competitiveness it not only concerned with the competitors but it is a competition in the industry. In this framework there are five forces which are considered. First is related with threat of new entrants then bargaining power of suppliers, power of buyers and threats of substitute products and industry rivalry. This tool is considered by the sales department so that activities can be managed in a proper manner. It is important for the companies to consider this tool so that it can be simple for them to achieve their objectives and goals in a proper manner. It will also help to accomplish proper management in the workplace (Sakas, Vlachos and Nasiopoulos, 2014).
The threat of substitute is high as customers are focused towards availing the products and services. The competition level is also high in the market which gives impact on the other competitors prevailing in the market. Also the power of suppliers is low as the competition level is so high that it gives impact on the sales of the company. Next is related with the power of buyers which is high as customers purchase the products on routine basis. Also the threat of entrants in the market is high as it has been seen that new units of similar product line are focusing on expansion which is giving impact on the overall sales of the company.
SWOT analysis is linked with strength, weakness, opportunities and threats. It is a structured method that assists in evaluating both internal as well as external aspects that directly impact the success of the company. This framework requires introduction as it has been considered and overused in a proper strategic planning discussion. It also requires to be combined with the TOWS matrix to consider additional insights. This tool is considered by the managers by analyzing the factors so that in right direction implementation of the activities can take place. It is important for the company to focus on this as it helps to consider proper marketing mix and also boost the overall productivity level of the company (Bull et al., 2016).
The company is one of the biggest companies on the online platform which focuses on selling the products and services through online booking. This is considered as the strength of the company. The weakness which is analyzed in the company is related with the customer’s satisfaction as it has been seen that company is not able to satisfy its customers in a proper manner. Threat of the organization emphasizes on the competitor present in the market. The major competitors of the company are Amazon and Flip kart. The competition level is high which also affect the overall growth and profits of the company. Opportunities that can be grabbed by the company are related with market share that should be grabbed. The company can easily grab the large market share that can directly impact the overall profitability. It has been seen that opportunities that can be considered is related with the market share and also growth of the company (Bailey et al., 2018).
This tool is considered for business evaluation that assists in searching the internal sources of the sustainable competitive advantage and it is considered as a resource based view. In this model the resources and capabilities are considered and it should have four attributes that can help to achieve competitive advantage. It has been seen that resources should be valuable, rare, inimitable and also supported by the company (Morden, 2016). This tool is beneficial as it helps to consider the competitive advantage. It is important for the company to consider this so that overall profits can be achieved. This tool is considered by the top management of the company so that proper competitive advantage can be availed. This model emphasizes on the tangible and intangible resources. The resources which are tangible are land; building and also other physical products and intangible assets are related with the goodwill of the company. It is important for the company to focus on this strategy so that activities can be conducted smoothly (Somsuk and Laosirihongthong, 2014).
It is important to focus on the resources so that activities can take place in proper way. To attain large market share it is essential to consider competitive strategy so that demand of the products can be enhanced. In this concept, differentiation is also the factor which is considered so that company can easily achieve the market share. Also focus is given on achieving the competitive advantage which will assist in maximizing the profits of the company. In the market it is important to control the competition so that growth can take place in right manner. The company also create good image in the mind of the customers with the help of this tool.
So, these tools are beneficial so that competition level can be controlled in a proper manner.
References:
Bailey, C., Mankin, D., Kelliher, C. and Garavan, T., 2018. Strategic human resource management. Oxford University Press.
Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services framework. Ecosystem Services, 17, pp.99-111.
Geisler, E. and Wickramasinghe, N., 2015. Principles of Knowledge Management: Theory, Practice, and Cases: Theory, Practice, and Cases. Routledge.
Hurlbert, M. and Gupta, J., 2015. The split ladder of participation: a diagnostic, strategic, and evaluation tool to assess when participation is necessary. Environmental Science & Policy, 50, pp.100-113.
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.
Morden, T., 2016. Principles of strategic management. Routledge.
Sakas, D., Vlachos, D. and Nasiopoulos, D., 2014. Modelling strategic management for the development of competitive advantage, based on technology. Journal of Systems and Information Technology, 16(3), pp.187-209.
Somsuk, N. and Laosirihongthong, T., 2014. A fuzzy AHP to prioritize enabling factors for strategic management of university business incubators: Resource-based view. Technological Forecasting and Social Change, 85, pp.198-210.
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