Competitive Strategy for Commonwealth Bank - myassignmenthelp

Question: Discuss about theCompetitive Strategy for Coca Cola and Commonwealth Bank. Answer: Introduction A well defined competitive strategy offers guide to the business to perform efficiently in both the external and internal environment. Strategy is highly important for the business to identify the opportunities and trends in the future (Wolf and Floyd 2017). The broader changes in the market such as political, technological and consumer changes are identified. Moreover, help the business to develop and modify to suit these future changes. The essay describes the use of three major competitive strategies. This includes resource based view strategy, PESTEL analysis and Porters five forces model. In industries such as Dominos pizza, Coca cola and Commonwealth bank the strategies will be applied. These strategies identify the future risks and helps in overcoming obstacles by developing tactful ways. These important three strategy tools will be used to analyze different industry and obtain maximum result. The competitive strategy helps in creating a vision that provides adequate direction for the overall organization. It enables the company to generate a competitive advantage and also understand the important mission and vision of the organization (Albert and Grzeda 2015). In the recent times, the organization must have effective analytical tools to identify the factors that would affect the business environment. In addition to this, competitive advantages enable an organization to make proper planning and coordination among their departments. Resource based view Strategy Resource based view is a method of obtaining competitive advantage by reviewing effectively its internal organization (Bromiley and Rau 2016). An organizations performance is mostly known by its resources, which is at its disposal. These resources are helpful in facilitating a distinct competitive advantage. Dominos pizza has a broad customer base and market. The company uses strategic positioning procedures to rapidly develop and become a great influence on the strategic thinking procedure. Dominos pizzas core competencies enable the firm to gain competitive advantage in various markets, where they can benefit from the products. The material resources of the organization are its food resources, which is very easy for the competitors to achieve (Dominos.co.in. 2018). This therefore increases the suppliers bargaining power. The organization has well trained and highly talented human resources to support their franchised training services. The other intangible resources include its largest business scale and consumer oriented corporate culture. With the help of resource based view, Dominos pizza low price strategy is still the viable strategy to gain profit in the present fierce market condition. Through product differentiation the company will be able to obtain maximum growth rate in the future (Jensen 2016). Dominos pizza had enhanced its core competencies to increase the companys intangible assets that are difficult for its rival to copy. PESTEL analysis PESTEL analysis is a competitive strategic tool that is mainly used to acknowledge all the macro environmental forces that faces an organization (Gans and Ryall 2017). The factors include political, economical, technological, social, environmental and legal factors. All the firms that successful monitors and respond to existing changes in the macro environment enables to create competitive advantage and differentiate itself from the competition. Coco cola uses PESTEL analysis to analyze its business environment. Political factors if coco cola involves the regulation of the government. The products of Coca-cola are currently at the mercy of FDA. Changes in the established laws prevent the organization from distributing drinks. Economical factors plays a major role in assessing the companys worth and value (Shah et al. 2015). Coca-cola has updated and changes its techniques to handle their products and customers by creating new innovative flavors to accommodate its customers. Coca-cola is generally distributed in majority of countries. The company successfully meets the demands of their customers. The technological factor of the company has ensured it in delivering the products easily with quality product development. The company has also used social media technology to connect with their audiences. Coca cola retains all the legal rights that are concerned with the business by including future and past products that is developed through a patented process (Coca-colacompany.com. 2018). Coca-cola has to adhere with various environmental laws to manufacture their products. Coca-cola is primarily affected by water accessibility and any change in the environmental condition creates a negative impact on the business. Porters five forces Model Porters five forces model is a strategic management tool that is used in analyzing their industry and clearly understanding the underlying levers for industry profitability. Porters five forces are used to clearly understand the five competitive forces that influence the business profitability and developing strategy to enhance the Commonwealth Bank of Australia. Threats of new entrants put a huge pressure on the Australia common wealth bank. Through reduced costs, lower pricing strategy and helping the customers with new value based propositions, the bank safeguard its competitive edge (Commbank.com.au. 2018). The bargaining power of suppliers leads to decrease the banks margin in Australia. Powerful suppliers in the banking sectors use its negotiating power to obtain increased prices from the firms. Moreover, it leads to lower down the banks profitability. The bargaining powers of the buyers are also very high. Commonwealth bank can survive the threats from its substitute products by increasing the customers switching costs (Goncharuk 2016). There is huge rivalry among the competitors and it takes a toll on the Commonwealth bank long term goals and profitability. Conclusion The competitive tools are highly beneficial to analyze the competitive environment and get a clear knowledge about the business environment. PESTEL analysis is useful in identifying the environmental condition of Coca-cola. PESTEL analysis is very simple and involves cross-functional expertise and skills. It enables the organization to exploit and identify new opportunities. The process should be conducted in a continuous manner for being effective and the organization does not make this investment. Resource based view of Dominos pizza helps the firm to acknowledge its own strength instead of focusing on the organizations external condition. This strategy enabled the firm to utilize its resources and therefore adding value to the firm. The Porters five forces model is used to ascertain the effectiveness of Common wealth bank. The model helps the management to assess and evaluate their current market environment. Though Porters five forces model have difficulty in integrating the market complexities as the non-market forces are not considered. References Albert, S. and Grzeda, M., 2015. Reflection in strategic management education.Journal of Management Education,39(5), pp.650-669. Bromiley, P. and Rau, D., 2016. Operations management and the resource based view: Another view.Journal of Operations Management,41, pp.95-106. Coca-colacompany.com. 2018.Coca-Cola Journey Homepage. [online] The Coca-Cola Company. Available at: https://www.coca-colacompany.com/ [Accessed 20 Apr. 2018]. 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