Write an essay of explaining the main strategy development tools and how they are used 1200 words;
In this paper, various strategic development tools have been discussed. In order to stay competitive and ahead in the market marketer used to analyze the market situation and its strength and weakness and accordingly marketer take a decision. Tools which are used by the marketer to analyze the micro and macro environment are SWOT Analysis, PESTLE Analysis, and Five Fore Model Analysis, Gap Analysis etc. This paper covers strategic tools used by marketers such as SWOT Analysis, PESTLE Analysis, and Five Force Analysis.
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It can be used for various purposes. Some of them are as follows
For the purpose of business planning, for conducting strategic planning, outsourcing a service, resource or activity, a method of sales distribution and so on. SWOT Analysis is the techniques which are very useful for understanding all types of situations in organization and business.
There is various software which an organization can use to develop it SWOT Analysis Chart such as Gliffy. Gliffy is the tools which are web-based which help in creating the Charts showing the Strength, weakness, opportunity, and threats.
FIVE FORCE Analysis
In order to use Porter's five force organization need to work with the following question.
• The threat of new entry- This includes a question such as it is easy to start the new business, what are regulation and rules, what and how financed is required and so on.
• Buyer power? - This includes a question such as how powerful buyers are, numbers of buyers, and so on.
• Supplier’s power? - This includes a question such as a number of suppliers, is supplier hold power etc.
• The threat of substitute? - This includes is it easy to avail alternatives, whether it can be automated or outsourced etc.
• Competitive rivalry? - This includes the level of competition in the sector, a situation of the competitors etc.
This analysis helps the organization in determining the decision related to make the entry into particular industry or not. It also in determining the bargaining power of the suppliers and buyers. If the bargaining power of buyer is low then it is good for the organization whereas as if the bargaining power of supplier is low it is also good for the organization. But if the bargaining power of supplier or buyer is high then it will guide the management in taking corrective measure and step to reduce the bargaining power of both.
The organization uses Pestle Analysis in order to determine the political, legal, social, technological and economic factors. For using this tool organization uses to follows some step to analyze their business environment and their threats, opportunities available.
The first step for using Pestle Analysis is considering all the political, legal, economic, technological and social factors.
2. Brainstorm opportunities
The second step is identifying the changes that are taking place in the business organization environment. Here management needs to look at each change and try to brainstorm the opportunities that are available to avail. For example, if organization find that developing a new product is fruitful with new technology and considering the social factor of the customer then organization need to develop the product to earn more profit.
3. Brainstorm threats
The third step is brainstorming the threat which may affect the business performance. This will enable the organization in avoiding the negative impact of threat. For example, if conducting the pestle analysis organization found that there may be a decrease in demographic then organization may take the decision to open their market in other regions also.
4. Take Action
At the end take the final action, for example, the opportunities which are identified should be availed, and the threat is minimized by taking an effective decision. Here organization needs to make new business plan through observing its analysis report.
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