#COMPITITIVE STRATEGY#

 Introduction 

This 21st century, there exists a high rate of competition between every individual company to achieve the first position. Thus, there are some tools which can help to show the weakness and opportunities as well as the competitors those are SWOT, PESTEL and Porters five forces. Thus, the application of this model will highlight within the three chosen companies those are Tesla, DHL and Walmart. In 

PESTEL 

 

As per the view of Bismark et al, (2018), the PESTEL analysis is mainly denoted as the strategic management tool which determines the industry's macro factors. 

 

Tesla 

Political factor 

It can be seen that Tesla is highly profitable with the use of political factors because the Government has taken a stance for improving the development of hybrid engines.

Economic factor 

In UK, the sales rate of electric cars has increased to a wide extent. Moreover, in automotive industry, there seems to be a fair trade between the UK and US which seems to be beneficial for Tesla as a result of Brexit (Allan, 2017). 

Social factor 

In UK, there is seems to be a high rate of popularity with the increase of the low-carbon lifestyle which is an opportunity. Moreover, it can be seen that in UK, there is an increasing preference in terms of renewable energy within the market.

Technological factors 

The incrase technological change can be an opportunity as well as a threat to the organisation. In order to enhance the products in terms of technological way is an opportunity but it can threaten the organisation in terms of obsolescence of ecologies (Mintel, 2017). 

Environmental factor 

The organisation has an opportunity to promote electric vehicle based on climate change. Moreover, the organisation electric vehicles and solar panels were directly linking business sustainability. 

Legal factor 

Tesla has an opportunity to expand its business in the overseas market with patent protection. Moreover, the organisation has an opportunity for growth through direct sales which are allowed in different states like USA. 

Walmart

Political factor 

Walmart seems to have high stability of politics which is an opportunity in the competitive field. The political support for Walarmet is high which can make an impact on the globalisation.  

Economic factor 

Walmart can simply expand their organization due to the stability of the major economies and continued growth of developing countries.  

Social factor 

Walmart can simply increase their array of healthful products and they can also increase the variety of their products for satisfying the cultural preference (Wal-Mart Stores, Inc., 2019). 

Technological factors 

Walmart has an increase in business automation which is an opportunity for the competitive advantage. It can be seen that Walmart can increase their revenue by simply doing online marketing and online selling as well. 

Environmental factor 

Walmart is in need the urge of improving operational efficiency to attain business sustainability. Walmart can strengthen the ecological factors by improving the standards and policies of sold products. 

Legal factor 

Tax reform is the major threat for the organisation which can lead to a high tax rate. Hence, Walmart can implement food safety regulations to improve quality standards.

DHL

Political factor 

The organization gets political support because they are highly expanded in the overall area. Moreover, there are some restrictions in terms of import and export (Company portrait, 2019). 

Economic factor 

Economic crisis can directly impact on the DHL business by causing financial loss. 

Social factor 

The perception of people can directly impact on the sales rate of DHL. 

Technological factors 

The use of advanced technology within the organization is providing a boost within the competitive field (Technology, 2019). 

Environmental factor 

The DHL uses a vehicle which causes air pollution and it can hamper the brand image. Hence, it can result in the loss of customers and show low sales rate (Envirosolution, 2019). 

Legal factor 

DHL expanding in some companies has a wide range of legal factors which can impact on them directly. Moreover, by fulfilling all legal requirements can manage them to put a good brand image. 

SWOT 

 

As per Phadermrod et al, (2019), the SWOT analysis is a traditionally used form in the brainstorming. In here it highlights the SWOT of Tesla, DHL and Walmart.

 

TESLA

Strength (S)

Tesla has a major advantage in case of excellence position within the brand and it is growing much faster. Moreover, the organisation-wide range of good quality products and they are the supplier of bug companies. 

Weakness (W)

It can be seen that they have a limited market share as their shares are low as well as they have a low production capacity (Mintel, 2017). 

Threat (T)

The major threat Tesla can face is from getting capital to run their financial activity. Moreover, they have a decrease production rate as well as capacity in terms of distribution. 

Opportunities (O)

Tesla has a major opportunity in terms of global expansion to reach a wide range of new markets. 

Walmart 

Strength (S)

Walmart brand name can be recognised in the entire world and they are the largest retailer with high revenue and stores. The major advantage of Walmart is their advanced technology for inventory and customer relationship management. 

Weakness (W)

The major weakness of employee is their high rate of employee turnover and lacks motivation. Moreover, they have some products which are sold in terms of inferior quality which shows a poor brand image. 

Threat (T)

Walmart seems to be facing threats from the competitors which includes TESCO, Carrefour and Amazon. There is another threat which is a high rise in products because of the high amount of increased labour cost. 

Opportunities (O)

Walmart has the opportunity to provide western goods to developing countries. Moreover, a high increase of healthy eating can simply tend towards Walmart introducing special products. 

DHL

Strength (S)

The major strength present within the organization is the large networks because they cover 220 countries. Moreover, they have strong brand equity which makes them rank 77 in the global perspective. 

Weakness (W)

DHL has the weakness of limited market share growth and they needed heavy investment for setting up or to expand. 

Threat (T)

The main threat faced by DHL is the economic slowdown as well as competition. 

Opportunities (O)

DHL can get the opportunity in terms of inorganic growth because they are a big name in the industry. Moreover, their presence in electronic shopping is an opportunity for them.

 

 

Porter's five forces 

The porter's five forces help to identify as well as analyse the five competitive forces to share the industry and identify their weakness and strength (Takata, 2016). 

TESLA

The threat of new entrants (Low)

The main threat of the new entrants is related to a considerable cost of brand development. Moreover, there is a high capital requirement where there is a need o economy of scale. 

The threat of new substitutes (Low)

The main substitute is public transport hence, there is a threat from the new substitutes is much lower. Moreover, Tesla customers seem to be found not using any public transport due to increase economic level (Allan, 2017). 

Bargaining power of customers (Moderate)

It can be found that the switching cost is much lower and due to the high price rate the customers do not buy this kind of products.

Bargaining power of suppliers (Moderate)

Tesla has a powerful vertical integration with very few suppliers. Moreover, those few suppliers have strong bargaining power.

Competitive rivalry (High)

The major rivalry forms the high rate of innovation and promoting the powers of companies. Apart from this, some companies are a high rate of distribution channel (Mintel, 2017). 

Walmart 

The threat of new entrants (high)

It can be seen that new entrants brand development is costly. Moreover, in retail firms, there is a low cost of doing some business in the retail sector. 

The threat of new substitutes (Low)

It can be seen some of the Walmart substitutes are easily available where the decrease in the rate of substitutes is becoming tough for buyers to move from their existing products (Wal-Mart Stores, Inc., 2019). 

Bargaining power of customers (low)

The large population of customers can provide a low force of Walmart and they have a negligible impact on the company's revenue. 

Bargaining power of suppliers (low)

It can be seen that Walmart's large population of suppliers are seen to be weak potential in terms of impacting the company. 

Competitive rivalry (High)

There are different firm in the retail market which can provide high competition. Hence, it can result in the lowering of the revenue within the competitive environment. 

DHL

The threat of new entrants (low)

The sale economy is hard to achieve in this industry and it makes the production much costlier for new entrants. The product differentiation seems to be strong in the industry where it can be seen that industry sells differentiated products. 

The threat of new substitutes (Low)

In this industry, there are very few substitutes present for the products which are produced within the industry where DHL operates. Moreover, some of the substitutes are present for good quality but they are much expensive (Company portrait, 2019). 

Bargaining power of customers (low)

The product differentiation is much high in this industry where it denotes buyers are not able to find the alternative products in the industry. Moreover, the buyer's income is much lower in this industry. 

Bargaining power of suppliers (low)

The supplier within the industry where DHL operates is higher than the buyers. Hence, it denotes less control over the prices from the suppliers.  

Competitive rivalry (high)

In this industry, the number of competitors is much less as compared to other fields. Moreover, the fixed cost in the companies has a high cost which makes the organization top push further for fill capacity (Envirosolution, 2019). 

Conclusion 

 

From the above study, it can be found that these models will benefit the organization by showing their strength which can hamper their growth. It is also found all the models also show the rivals where they can maintain their strategy.