HI6006 Competitive Strategy Editing Service

Introduction

The assessment here discusses about the strategic management tools which can help the business to develop in the market and also achieve competitive advantage in the business. The discussion is about some of the strategic management tools which can help in the development of the business. PESTEL analysis, SWOT analysis and Porters Five Forces model will be discussed as a medium of strategic management tool.

Five Forces model is used by the company in order measure the level of success that is attained by the business. All the business activities are examined which is implemented by the business for achieving the competitive advantage. PESTEL analysis is conducted in order to examine the macro-economic factors. Macro-economic factors are considered in order to know the factors that can affect the business operations. On the hand, SWOT analysis is conducted in order to know the strengths and weakness of the business organization. The company can then analyse the opportunities and threats of the business. The strengths and the opportunities can be used to reduce the threats and the opportunities. The chosen organizations for the assessment are Fonterra, Rio Tinto and Nestle.

The tools are selected with a motive so that the business can easily manage the activities of the business. Other than this, the business also reduces the risks and issues which might affect the growth of the business in the market.

PESTEL analysis of Fonterra

PESTEL analysis helps the company to analyse the behaviour of the organization in the macro environment. The key features of PESTEL are-

1. Helps in knowing the business operation in the macro environment

2. Analysing how the company is working in the macro environment

3. Understanding the behaviour of the company towards political, social, environmental, economic, technological and legal factors (Lu, et.al, 2013).

PESTEL Analysis of Fonterra

1. Political- The level of political stability is moderate because the Australian economy is growing and fast growing. Other than this, corruption in Australia is moderate but can affect the business operations of Fonterra. Lower minimum wage is indicated to have higher profits for the business. This can lead higher chances for the survival of the business in the market. Trade barriers can also affect the shareholders fund and can also preventing some exports for the business (Phadermrod, et.al, 2019).

2. Economic- GDP growth of the country will affect the funds of the shareholders on Fonterra. Interest rates imposed by the company will also affect the customer’s will to pay and invest in the company. Also, the brand is in demand of the people; therefore, the company will earn profits which will help in achieving competitive advantage. Unemployment in the country will affect the business operations.

3. Social- Fonterra conducts proper research in the market to know the needs and preferences of the customers in the market. After the market research is conducted, the company is there to provide high quality of dairy products to the people. The distribution channel of the company is the best which helped the company to become one of the leading brands in the market. The class distribution is generally for the lower class people which affect the shareholder’s funds of the company.

4. Technological- All the products and goods made by the company are of high quality. The main reason behind the high quality production is the advanced technologies which have helped the business to achieve competitive advantage. But, the rapid change in the technology is affecting the business operations. This is impossible for the company to rapidly change the business operations according to the change in the technology.

5. Environmental- For the better services, Fonterra is also contributing in maintaining the sustainability of the business in the market. Climate change is directly affecting the business operations which are delaying the delivery dates of the business. Also, large amount of waste is being generated. Therefore, proper laws and policies should be followed for the maintenance of waste.

6. Legal- All the laws and policies are being followed by the company in order to manage the activities of the business. Other than this, Fonterra is not practising discrimination. Also, the customers are provided every information  needed by the company (Rivani, et.al, 2018).

SWOT Analysis of Rio Tinto

SWOT analysis is conducted in order to know the strengths, weakness, opportunities and threats of the business. The key features of SWOT analysis are-

A. Observe the positives and the negatives of the business

B. analyse the opportunities and threats

C. prepare strategies to reduce the threats and the weakness

D. helps in knowing the internal behaviour of the business (Lee, et.al, 2018)

SWOT analysis of Rio Tinto-

1. Strengths- Rio Tinto has the strong distribution which helps the company to reach maximum number of customers in the market. Also, the supply chain of the company is strong because of which, there is no delay in the delivery of the products. Automation has helped the company to work according to the needs of the people. Also, the company is tracking all the activities of the business (Lee, et.al, 2018).

2. Weakness- Rio cannot track the activities and the strategies which is being implemented by the new entries in the market which can affect the business activities of the business. Despite the company is receiving higher investment, Rio is lacking in competing with the competitors in the market. Rio is also lacking in providing the goods that are in demand of the customers. This is affecting the competition of Rio (Phadermrod, et.al, 2019).

3. Opportunities- New environment policies will help the company to manage the delivery of the products using the advanced technologies in the market. New taxation policy can help the business to enhance the working of the business. Proper tracking activities of the competitors will help Rio to achieve competitive advantage in the market. Lower inflation rate in the economy will enhance stability in the market (Delitheou & Georgakopoulou, 2019).

4. Threats- Fluctuation in the laws and policies of the company can also affect the company’s operations and functions of the business. Also, fluctuation in technological advancement can affect the business operations of the business. Other than this, if Rio does not launch new products in the market, the customers might switch the brands and the products (Nicelli & Chandra, 2013).

Porter’s Five Forces analysis of Coca-Cola

1. Threat of New entries- There is less chance for the customers to switch the products from Coca-Cola. Coca-Cola is a brand and not only a product, therefore, are the customers also loyal towards the brand. Therefore, the threat of new entries is moderate (Mathooko & Ogutu, 2015).

2. Threat of substitute products-The threat to substitute is medium to high because Coca-Cola is not manufacturing the drink in flavours, therefore, it is difficult for the customers to define the taste between Coca-Cola and Pepsi (Mathooko & Ogutu, 2015).

3. Bargaining Power of the Supplies- for preparing the soft drink, there is a requirement for carbonated water, phosphoric acid, sweetener and caffeine. Therefore, the suppliers of the company are not segmented. Anybody can provide these ingredients to the company. Also, the suppliers are more and Coca-Cola is also providing these ingredients to the people (Shahid, 2013).

4. Rivalry among the competitors- Right now, the main competition of Coca-Cola is with Pepsi. Pepsi has the wide range of products which can affect the business operations of Coca-Cola. Also, Pepsi is engaged in promotional activities and sponsoring the programmes which can distract the customers from Coca-Cola to Pepsi (Santos, et.al, 2018).

Conclusion

The assessment here discusses about the strategic development tools which can help the business to achieve competitive advantage in the business. Other than this, the assessment also discusses about the PESTEL, SWOT and Five Forces Model. The analysis is conducted on Fonterra, Rio Tinto and Coca-Cola respectively. Also, the assessment also discussed about the key features of the tools as well.

References

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