Competitive Strategy for Pestel Analysis- myassignmenthelp.com

Question: Discuss about the Competitive Strategy for Pestel Analysis on IntroTravel. Answer: Introduction The strategic management tools are very important to analyse the business environment of an organisation. Several strategic management tools are available to analyse the situation of the companies and their current scenario. This study will provide a brief explanation on the three strategic management tools, namely PESTEL, SWOT and 5F. A comprehensive discussion will be presented on these tools and their importance on an organisation. The organisation selected for this study is IntroTravel, which is leading tourism company in Australia. The organisation is liked by the local citizens and its packages are very attractive. Pestel Analysis on IntroTravel Pestel analysis is one of the most important strategic tools to examine the external factors of an organisation. This tool helps an organisation to evaluate the external factors which impact the business (Hill et al., 2014). A company dont have any power over these factors and its impact the functions of the company. IntroTravel could utilise the Pestel framework to identify the external factors and the also the future trends in the business. This tool also helps in evaluating the external marketing situation and the macro-environmental factors. Political factors are vital for IntroTravel. It would help the association in recognising the threats and opportunities before extending its business tasks in another commercial place. Taking a gander at the foreign tax rules, trade guidelines and policies, society approaches may assist the company in extending its business (Hill et al., 2014). Understanding foreign legislations would help the concerned organisation to development its operations. Economic components would help IntroTravel in recognizing the money related arrangements (Ilevbare et al., 2016). Understanding the financial state of a locale is essential before venturing on it. The GDP, inflation rate, FDI and exchange rate, all affect the business functions of an organization. Distinguishing the fiscal arrangements would help the organization in making systems for development. Social factors are indispensable as it expresses the perspectives of the clients in a region. Before extending the business, it is imperative to perceive the discernments, perspectives and thinking about the clients (Ilevbare et al., 2016). It is imperative to break down whether the clients would go for quality or amount. A few social viewpoints, for example, proficiency rate, joblessness, wealth distribution and populace demographics are imperative to dissect. Technological factors are about the development of innovation. As IntroTravel is working in the tourism business, usage of advanced technology is essential (Rothaermel, 2015). The advancement of technology helps an association in streamlining the interior effectiveness of a product or service. By advancing the technologies, IntroTravel could enhance its product and service effectuality. Analysing the environmental factors would help the IntroTravel to identify its negative impact on the environment. The concerned organisation must evaluate that harming the environment would levies heavy tax penalty on them. Legal factors are the last factors PESTEL analysis framework. This analysis helps an organisation to understand the legal regulations in a country (Gamble and Thompson, 2014). The concerned organisation has to recognise the legal scenarios while operating in a forewing land. Pestel analysis assists a company in identifying the external factors which could influence the business operations of an organisation (Gillespie, 2007). It helps in getting the strategic and competitive advantage. Porters Five Forces analysis Porters five forces framework is a key management tool to distinguish the business and to appreciate the expressing levers of profitability (Moutinho and Vargas-Sanchez, 2018). IntroTravel, which is one the leading tourism organisation in Australia could use the concerned examination to perceive how the five forces affect the profitability of the business and could help in building up a system. Threat of new participants: new participants in business brings modernization which put weight on the IntroTravel with decreasing costs, lower net revenues and giving new facilities to the clients. The concerned organisation needs to deal with all these issues and need to fabricate an effective barrier to secure its aggressive edge. Suppliers bargaining power: IntroTravel needs to buy its raw materials from various providers, which keeps them in prevailing positions. As the competition level is very rigid in the tourism business, suppliers are in predominant position (Gumerov et al., 2015). Their strength could diminish the profit margins of the IntroTravel. It could be taken care of by building an effective supply chain with different suppliers. Buyers bargaining power: purchasers are requesting more than before which places them in a predominant position. High dealing powers look for expanding rebates and offers. The bargaining power could be handled by building a substantial clients base and advancing new products and services. Threats of substitutes: there are numerous multinational tourism companies willing to grow their business activities in Australia (Gumerov et al., 2015). As there are a few organizations offering a similar services, the threats of substitute is high. It could be handled by understanding the centre needs of the clients and by raising the switching cost of the buyers. Rivalry among existing business: the competition among the current business is exceptionally extreme and it has driven down the general productivity of the organization. For handling the exceptional contention, IntroTravel could construct sustainable differentiation and by teaming up with its rivals to grab a large market area. SWOT Analysis SWOT analysis is an aggressive and complete investigation tool. It distinguishes the strengths, weaknesses, opportunities and threats of an association. A proper SWOT investigation could help an establishment in recognizing the territories where it could enhance itself, where it fits its aggressive functions and what is going admirably (Moutinho and Vargas-Sanchez, 2018). Playing out a SWOT investigation helps an association by introducing a recognition and perspective of its capacities and activities from a different viewpoint. This investigation could be performed whenever at the business and it is basic for the organization's planning process. Here is a SWOT examination on IntroTravel: Strengths: Strengths stands for the variables which positively affect the organisation goals. The main strength of IntroTravel is its holdings in the Australian market (Jurevicius, 2013). The profit of the company has a significant growth rate. The holiday packages are sold directly to the customers and there are no mediators between it. The employees loyalty is another major strength of the company. Weaknesses: In SWOT examination, weaknesses are the elements which negatively affect the accomplishing organisational goals. The primary weakness of AIM is its gigantic reliance on the Australian market. There is intense competition among the existing tourism companies and this indicates limited brand loyalty. As the organisation has presence all over Australia, it has to face social and cultural issues in managing offices. Opportunities: In SWOT analysis, opportunities are the variables which are probably going to expedite positive effect on the organisational objectives (Jurevicius, 2013). IntroTravel has the opportunity to enact the volunteer community. It could introduce apps for reservation and booking holidays. It also has the opportunity in emerging markets to tap the potential. Threats: Threats in SWOT analysis are the exterior factors which are probably going to negatively affect the organisational destinations (Barney and Hesterly, 2010). It is the variables which make the objectives un-achievable. The main threats of the company are the risks involved in the interests risks, political and economic policies of countries. SWOT analysis encourages associations to break down its strength and weaknesses. It additionally features the opportunities and threats of the organization (Barney and Hesterly, 2010). It helps an association to centre on its qualities and to accomplish the accessible opportunities. Conclusion It could be said from above analysis that all the mentioned strategic management tools help an organisation to achieve its desired objectives. These tools are very helpful in outline the business scenarios and environment. References Barney, J.B. and Hesterly, W.S., 2010.Strategic management and competitive advantage: Concepts. Prentice hall. Gamble, J. and Thompson, A.A., 2014.Essentials of strategic management. Irwin Mcgraw-Hill. Gillespie, A., 2007. PESTEL analysis of the macro-environment.Foundations of Economics, Oxford University Press, USA. Gumerov, A.V., Kharisova, R.R., Pavlova, A.V., Litvin, I.Y., Nabiullina, K.R., Schepkina, N.K. and Sabirov, I.T., 2015. Improving strategic management of the business entities.Review of European Studies,7(1), p.23. Hill, C.W., Jones, G.R. and Schilling, M.A., 2014.Strategic management: theory: an integrated approach. Cengage Learning. Ilevbare, I., Dusch, B. and Templeton, P., 2016. A framework and methodology for creating business tools and processes.IfM, University of Cambrige, Cambridge. Jurevicius, O., 2013. Pest pestel analysis.Strategic Management Insight,13, p.2013. Moutinho, L. and Vargas-Sanchez, A. eds., 2018.Strategic Management in Tourism, CABI Tourism Texts. Cabi. Rothaermel, F.T., 2015.Strategic management. McGraw-Hill Education.