KEY STRATEGY DEVELOPMENT TOOLS

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 Executive summary
Strategy development tools are important for fundamental running and creating a
business with setting specific objectives and goals in shifting marketing dynamics. In
this essay, key strategic development tools SWOT analysis, PESTLE analysis, Ansoff
matrix, and Porter's five forces were discussed with respect to four companies
Woolworths Group, Qantas, Telstra, and Coca Cola Amatil. The four companies have
been from the four different industries like retail, aviation, telecommunication and
beverage respectively from Australia. The aim is to analyses the aspects of the
companies with the strategic tools to evaluate their fundamental position in their
respective industries. Further, the dynamic position with its competition in the Australian
market is studied to target their goals and objectives. It was further concluded that,
Woolworths has a large market force, which it has achieved through use of SWOT
strategy tool. Further, PESTLE analysis was done, revealing the use of 5G technology
at Qantas to adapt with the technical developments in airlines industry. Similarly,
strategies were undertaken by Telstra and Coca Coca Amatil respectively.

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 Table of Contents
Introduction........................................................................................................................4
Key Strategic Development Tools......................................................................................4
SWOT analysis..................................................................................................................4
PESTLE analysis...............................................................................................................5
Ansoff matrix......................................................................................................................6
Porter’s five forces.............................................................................................................7
Conclusion.........................................................................................................................8
References.........................................................................................................................9

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Introduction
Strategy development tools are important for fundamental running and creating a
business with setting specific objectives and goals in shifting marketing dynamics. This
essay has highlighted the key strategies tools like SWOT analysis, PESTLE analysis,
Ansoff matrix, and Porter's five forces used by Woolworths Group, Qantas, Telstra, and
coca cola Amatil.

Key Strategic Development Tools

SWOT analysis
As mentioned by Bull et al. (2016, p.100), SWOT analysis helps to identify the
strengths, weaknesses, opportunities, and threats based on project planning or
business competition. The application of such a tool enables a company to analyze the
internal and external environment of the organization. In the opportunity, it had earned
0.2% growth in 2015 with the growth in retail sector (Woolworthsgroup.com.au, 2019). It
has the weakness of low presences in international markets with lateral entry. It has
been faced threat by Coles for the discount offers.
For example, strength of the Woolworths includes a large market share in Australia of
39% with 931 supermarkets and 198000 employees. The strength of Woolworths is that
it governs about 80% of Australian market. Woolworths has the strength of strong cash
flow in the new project. The strength of the Woolworths is that it has dominant market
present withholding 50% stake in Australian market (Woolworthsgroup.com.au, 2019).
The weakness of Woolworths is it has non-core assets with low-cost base. In the
weakness, part of market gets confused with the multiple income segments with the
same products. A further, partial behavior into the market as Woolworth’s only targets
the higher income segments with better services and products.
Opportunity obtained by Woolworths is it has ventured into international markets such
as Asia Pacific and China. The opportunities it gets that it has low inflation rate and new
environmental policies. The opportunity Woolworths gets is that it has digital marketing
and loyalty program. On the other hand, opportunities it gets, the experiences in order
to penetrate into the supermarket with the inclusion of loyalty schemes and
personalized services.

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Threat of Woolworths is the biggest competitors which are Coles or online retailers like
Amazon. The said company has been found to suffer from latency problems as
compared to its competitors like Coles and Amazon. The threat of Woolworths is the
regulatory problem for hindering business expansion. In Australia, the threat it faces is
that it has saturated mobile market. The threats to Woolworths include the new entrants
into the market and low product demand (Woolworthsgroup.com.au, 2019). The threat
Woolworths faces is that it has lower skilled workforce with non-innovative product.

PESTLE analysis
As opined by Nandonde (2019, p.58), PESTLE analysis is done for defining the macro
environmental factors framework in the environment strategic component of strategic
management. The application of such a tool enables the company to analyze the
external environment for better strategic application in business. For example, in the
technological view, Qantas has implemented merchandising system based on SAP
(Quantas.com.au, 2019). It has legal battle with the ACCC (Australian Competition and
Consumer Commission). For the environmental factor, high investment in carbon
initiatives and energy efficiency has seen.
In the aspect of political views, Qantas has warm relationship with China and has
declared the Australia-China Year of Tourism in 2017 (Quantas.com.au, 2019). Mainly
the government supports the Qantas as an important part in the airline industry
cyclically. In economical aspects, the decline in oil prices occurs that affects the
profitability of airlines. The liberal aviation policy has affected the growth of airline
industry in Australia. Further, decline in price of oil had adversely increases the
profitability whereas the volatility remains a big issue still. In the social relationship, the
domestic partnership has been boosted customer base of Qantas in Australia.
Moreover, being a national carrier of Australia, Qantas enjoys the public trust in wide
along with the local consumer base. In the technological aspects, investment in
innovation and technology can be resistance to success. It has stan and Wi-Fi
streaming for enriching customer experience. Further, in the legal view, it has norms of
following carbon tax by Australian Government. It gets 95% contribution by jet fuel.

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Furthermore, Qantas is a company which enjoys a cordial, global and diplomatic
political relationship with the Australian government. In the economic aspects, it has
fallen of GDP due to commodity price fall in New Zealand and Australia
(Quantas.com.au, 2019). It has emerging expatriate population for growth in aviation
services. It does the investment in technology for enhancing customer experience. In
the legal aspects, regulatory changes are made by ACCC. For sustainability,
environmental solutions have been enhanced.
Qantas has political factors in terms of changing policies with the current government in
Australia. It has high inflation rate occurred due to easy liquidity in 2018. In the social
aspect, the company has access to essential services to increase investment in
customer aviation experience. With use of 5G, company has enabled low cost in
service. Qantas has to do investment making the customer aviation experience flexible
(Quantas.com.au, 2019). Qantas follows health and safety norms and employment law
in Australia for the members.

Ansoff matrix
As highlighted by Schawel and Billing (2018, p.32), Ansoff Matrix helps to provide the
framework for the senior managers, executives, and marketers devise strategies for the
company’s future growth. The application of such a strategic tool leads companies to
devise strategies in marketing practice. For instance, in order to control the operating
expenses and the manufacturing cost, Coca-cola Amatil needs to continue its
penetration in Australian market. For the market development, company will emphasize
and target the whole market in terms of goods and services compared by its
competitors such as Fanta and Pepsico. It has diversification with the implementation of
three-year strategy to lower process for retaining customer (Ccamatil.com, 2019).
Coca-cola Amatil in terms of market penetration holds around 39.5% of beverage
market of Australia. It created product development such as VitaminWater and health
drink brand with rising of $1 billion to $2.5 billion costs (Ccamatil.com, 2019). With the
use of venture capital, the smart money has been emerged by the company with the
attractive distribution channel in beverage industry. In the perspective of market
development, it holds 6.25% of share in Australian market.

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Coca-cola Amatil has the strategy to use market penetration in order to maximize the
market share within the existing market. It uses the growth strategy in order to penetrate
into the market which is possible due to its brand name. Coca-cola Amatil launches
Cherry Coke in 1985 in order to compete in the market which is considered to be a first
extension (Ccamatil.com, 2019). Additionally, it launched Fanta Icy Lemon in the
existing market in order to increase sales. The market development strategy followed by
Coca-cola Amatil is the launch of Coke Zero in 2005. It started its journey from USA and
almost acquired its business in every country with the geographical market
development. Further, it has launched Vanilla Coke which is deciding to be launched
first at UK. It has diversification in the Australian market by spending $4.1 to get
Glaceau with health drink (Ccamatil.com, 2019). It mainly focuses on the occasion to
enter into the market for acquiring Glaceau which includes VitaminWater and health
drink brand. It gets collaged with the Nigeria based dairy and juice company in order to
get portfolio.
Further, Coca-cola Amatil has invested in new product to attract the customers in
existing market. With the market development strategy, engagement of potential
customer gained by giving good promotions and deals. Market penetration has been
achieved the offers which allows its business growth.

Porter’s five forces

As commented by Rothaermel (2015, p.255), Porter's five forces helps a company to
analyses its competition which determines the competitive intensity in terms of profit.
The application of such a strategic tool leads organization to analyze their rank
regarding the gain of competitive advantage in the market. For example, Telstra has a
threat of new entrants in telecommunication by lowering its pricing strategy like Capital
expenditure raises due to high Research and Development costs. (Telstra.com.au,
2019). Bargaining power of suppliers can lower its profitability with dominant position in
telecommunication sector. Bargaining power of buyers can reduce the existing customer
defection to its competitors. Threat can be seen by increasing customer cost regarding
the electronic components. Rivalry can be mitigated by building sustainable
differentiation in products. Bargaining of suppliers can be tackled by Telstra with the

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help of building supply chain among multiple suppliers that decrease the Telstra
Corporation Limited margin. On the other hand, Telstra can tackle the threat of new
entrants building innovative product in terms of telecommunication network and market
voice. Bargaining of suppliers can be tackled by making dedicated suppliers of
telecommunication network in Australia and has land-based market of 94.1%
(Telstra.com.au, 2019). Bargaining power of buyers can be tackled by launching new
products in terms of mobile, internet access, and pay television in order to reduce the
shift cost. Rivalry can lower the price and minimize profit level of company which is
capturing the market portion of 57%, 31% and 11% as of 2002 (Telstra.com.au, 2019).
Telstra builds low-cost telecommunication network in order to tackle its competitors like
Optus Vodafone or Virgin mobile. In aspect of entry barriers, Telstra has reputed
position in telecommunication industry with its new engineering and R & A, D
undertakings that will be entry barrier for new entrants.

Conclusion
It can be concluded that the key strategies tools have emerged in every field of industry
like retail, beverage, airlines, and telecommunication. It was further concluded that,
Woolworths has a large market force, which it has achieved through use of SWOT
strategy tool. Further, PESTLE analysis was done, revealing the use of 5G technology
at Qantas to adapt with the technical developments in airlines industry. Similarly,
strategies were undertaken by Telstra and Coca Cola Amatil respectively. Therefore, the
company can be beneficial by applying these strategic tools.

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References

Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb,
C., Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., (2016).
Strengths, Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem
services framework. Ecosystem services, 17, pp.99-111.
Ccamatil.com (2019). Annual Report 2018. [Online]. Available
at:https://www.ccamatil.com/-/media/Cca/Corporate/Files/Annual-Reports/2019/2018-
Annual-Report.ashx [Accessed on: 19.04.2019]
Nandonde, F.A., (2019). A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence, 38(4), pp.54-61.
Quantas.com.au (2019). Investor Centre. [Online]. Available
at: https://investor.qantas.com/Home/ [Accessed on: 19.04.2019]
Rothaermel, F.T., (2015). Strategic management. Melbourne: McGraw-Hill Education.
Schawel, C. and Billing, F., (2018). Ansoff-Matrix. In Top 100 Management Tools (pp.
31-33). Gabler, Wiesbaden: Springer.
Telstra.com.au (2019). Investors. [Online]. Available
at: https://www.telstra.com.au/aboutus/investors [Accessed on: 19.04.2019]
Woolworthsgroup.com.au (2019). Investors. [Online]. Available at:
https://www.woolworthsgroup.com.au/page/investors/ [Accessed on: 19.04.2019]