Essay: Main Strategy Development Tools In Business.

Write an essay explaining what the main strategy development tools are and how they are used in business.

Your essay must contain a comprehensive discussion of 4 of the following:  PESTEL, Five Forces, Resource-Based View, PROFIT, Input/Output, SWOT Analysis (you may include Cross Impact Analysis), Generic Strategies, Ansoff, Ghemawat, with reference to academic journals and practical examples from industry. 

In the business world, there are various strategy development tools which are necessary to be considered so that activities of the company can be completed with efficiency. These tools help the company to attain the competitive advantage and also growth in the market. The issues are one of the common factors which are analyzed in the workplace but by considering these tools it can be easy for the company to minimize the issues.  So, the four strategy development tools which will be discussed in the paper are SWOT ANALYSIS, PESTLE, FIVE FORCE Analysis and Ansoff strategy.

This is a tool which should be considered by the company so that the factors related to strength, weakness, opportunities and threats can be evaluated. The SWOT analysis is a method that can assist the company in considering the right decisions which are beneficial for the company in the competitive market.  Strength and weakness are considered as the internal aspect of the company and threats and opportunities are related with external factors (Shabanova et al., 2015).

With the help of these tools it can be simple to control the entire resources of the company. It is a tool that can also help in maintaining the overall productivity level of the company.  It is important for the company to emphasize on these factors in the strategy tool as it can help in considering the right direction (Elmes and Barry, 2017).

The strength of the company is related with large market share. By having large market share it can be easy to maintain the brand image and also the quality of the products offered in the competitive market. The weakness which is related with the company is distribution channel. There are many parts offered by the company which are not available in the market and it also affects the overall growth of the company in the market.

The preference is not given by the customers as the products are not easily available in the market. So, it affects the growth of the company.  Lack of communication is also one of the aspects which impact the competition level prevailing in the market. The company can also grab the opportunity prevailing in the market like large market share can be maintained by offering discounts.  The competition level is high is one of the threats of the company in the competitive market (Steffen, 2017).

In the recent era, this tool is considered by the many companies. With the help of this tool it can be simple for the company to achieve the desired targets and also it showcases the right path to achieve success. This tool emphasizes on the five aspects which is taken into consideration by the company so that external environment of the company can be evaluated. The major factor that can be analyzed with the help of this tool is related with the competition level prevailing in the market (Johnson, 2016).

This tool is useful for the marketers to analyze the overall competitive factors of the market.

Blackberry Example

High rate of bargaining power is there as the buyers have the chance to buy the similar products from their nearby outlets or stores.

It has been analyzed that the rate of the suppliers are low as there are various small stores who are providing similar products in the market and the customers can easily purchase the products from the stores.

It is high as small companies are entering into the market and providing similar products.  Also, by offering similar products the companies are not able to achieve the large market share.

                                                                                                         Figure 1

                                                                                    (Source: Research Methodology, 2018).

High substitution rate as the companies who are entering in the market are offering similar products to the customers in the market.

The rivalries of the company are Wal Mart, Target and Woolworths.

It is considered as one of the best strategy development tool that helps to focus on in-depth analysis of the factors prevailing in the external market. With this tool it can be simple for the marketers to analyze the macro environmental aspects. There are six factors according to this tool: political, economic, social, technological, legal and environmental analysis.

These factors focus on the laws, inflation and deflation, rules and regulations of the government, manufacturing cost and also the environmental factor (Jarzabkowski and Kaplan, 2015).

At the time of managing the overall activities the company focuses on considering the rules and regulations. Like the company is found to be involved in the political scandals in South Korea. Lee Kwang Jae and Uri party representative were working for the South Korean president.

South Korean currency is one of the aspects of this factor which has impacted the overall revenue of the company. Like Samsung operating profits halved in 2008 and it is one of the consequence of the global economic and financial crisis.

The company considered the Glocal strategy so that preferences can be changed of the customers in the niche market.

Company considered various approaches related to innovation by considering the technology so that design of the products can be unique (Research Methodology, 2018).

The company faced various challenges in context to the heavy penalties for the alleged imitation of the products of Apple. Like IPAD and also IPHONE has focused on beating the perception of the customers at the time of taking approval of the strategies.  Also, company considered various lawsuits to manage the activities.

This is also called as the corporate growth strategies which can help the organization to emphasize on the products and services.  With the help of this strategy it can be easy for the company to boost the market share. There are four elements like market penetration, product development, diversification and also market development (Gamble  and Thompson, 2014).

In context to Cadbury, market penetration is also one of the essential tools. With the help of this tool it can be easy to capture the wide market share.

There are various flavors introduced by the company in the category of chocolate like Bubbly chocolate.  

In relation to diversification the company emphasized on considering various new categories that is related with the portfolio of the company and enhanced the market share in many countries. Like gums and Cadbury bytes are the product diversification. Cadbury also focused on penetration and enhanced the revenue and the products which come under this category are perks, bournvita and Cadbury dairy milk. 

It has been seen that to consider the diversification strategy is one of the clear idea that focus on enhancing the market share and also the risks are minimized if the company focuses on this strategy.

Conclusion

So, it can be concluded that by considering these tools it can be easy to offer the cutting edge to the company. With these strategies the companies can easily evaluate the overall market share and also the position in the competitive market. So, these tools should be considered so that growth and profits can be enhanced of the company. Like SWOT, PESTLE AND PORTER boost the overall market share of the company and also it helps in attaining the profits in the highly competitive market. So, these tools are necessary to be considered as it can help in managing all the factors in the competitive market

References

Elmes, M. and Barry, D., 2017. Strategy retold: Toward a narrative view of strategic discourse. In The Aesthetic Turn in Management (pp. 39-62). Routledge.

Gamble, J. and Thompson, A.A., 2014. Essentials of strategic management. Irwin Mcgraw-Hill.

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.

Research Methodology., 2018a. Five force  analysis. [Online]. Available at: https://research-methodology.net/apple-porters-five-forces-analysis-3/. [Accessed on13 December, 2018].

Research Methodology., 2018b.Pestle analysis. [Online]. Available at: https://research-methodology.net/samsung-pestel-analysis-2-2/. [Accessed on13 December, 2018].

Shabanova, L.B., Ismagilova, G.N., Salimov, L.N. and Akhmadeev, M.G., 2015. PEST-Analysis and SWOT-Analysis as the most important tools to strengthen the competitive advantages of commercial enterprises. Mediterranean Journal of Social Sciences, 6(3), p.705.

Steffen, B., 2017. The physics of software tools: SWOT analysis and vision. International Journal on Software Tools for Technology Transfer, 19(1), pp.1-7.