Strategic Development Tools


Strategic planning is the activity of management in the organizations in which the organization set priorities for further development by strengthening operations in order to achieve specific goals in future. It helps the organizations to define the goal which is needed to be achieved within a specific period of time. There is a number of strategic development tools that are used by the organizations. In this assignment, strategic planning tools are applied to analyse the Tourism industry of Australia. The detail of some of them is following


PESTEL is a framework used to analyse the macro environmental factors or the external marketing factors that can impact the organization (Rachet, 2014). PESTEL helps to evaluate how different factors of that company will influence the operations of the company. PESTEL analysis of tourism industry of Australia is carried out to investigate various factors that can influence the competitiveness of tourism industry.


In this step, the study of government intervention into a business is studied. This includes political stability, governmental policy, foreign trade policy, labour law, trade restrictions and many other things that are managed and imposed by the government of the country (Yüksel, 2012). The political conditions of Australia are favourable for the tourism. The revenues of tourism industry can be boosted by taking the advantage of relatively stable political environment. The stable political infrastructure of Australia gives the tourism industry of Australia a competitive advantage. Moreover, Australia has a positive foreign policy and it can provide favourable conditions for foreign tourists.


As the name suggests, the economic conditions of the country are analysed. Many factors of the economy are taken into consideration to find out how these factors can affect the business of organization in future. These factors include interest rates, economic growth, inflation, exchange rates and other terms related to the economy of the country. Australia has strong economy and people has high power of spending that can increases the probability of high revenues in tourism industry. However, the rough global economic conditions can influence the tourism industry of Australia. Contemporarily, many countries are in economic recession that is causing a decline in international tourism. This factor will also negatively influence the tourism industry of Australia.


This includes the analysis of social and cultural factors which includes the attitudes of the population and shared beliefs. The factor includes age distribution, population growth, health consciousness and other social and cultural factors that may impact the social conditions of the country. Social fabric of Australia favours the foreign tourists as the values of Australian society accepts diversity. The social factors of Australia are helpful in boosting the tourism industry.


In this factor, the changes in the technology are studied to find out how the organization can perform using new, advanced and improved technologies in future. Australia is a technologically advance country and invest a big proportion of its revenue in research and development. Technological advancement has reduced the cost structure for tourism industry which is favourable for the revenues of this industry.


The environmental factors are those which have a direct impact on our environment. This factor came under consideration just fifteen years ago when the world became conscious about the continuously destroying environment by the environmental pollution. The climate of Australia is moderate and it can attract the tourists from regions with harsh weather conditions. This factor can add value to the tourism industry of Australia.


The legal factors include equal opportunities, health and safety, consumer rights, advertising standards, product safety and other legal factors that the organization must have to abide by in order to remain a legal entity in the country. Australia has quite efficient law enforcement agencies that ensures the safety conditions for local residents as well as foreign tourists. Excellent security conditions and efficient legal system favours the growth and development of tourism industry in Australia.


The resource-based view is used to determine the resources that the tourism industry may use to achieve specific goals and comparative advantage in the future. It is the managerial framework which helps the industry to briefly study how the industry can use its potential resources which have not been used in a way to give maximum productivity (Lin & Wu, 2014).

The concept of resource-based view was first introduced by Barney in his article named, “Firm Resources and Sustained Competitive Advantage” in 1991. Resource-based view proposed that the organization usually rely on one or two type of resources without realizing that they have a number of different type of resources which they can use to achieve their specific aims and goals in future. As they have the diverse type of resources, they can have different types of strategies to discover the ways by which they can gain a competitive advantage in the market. These diverse strategies will help the organization to achieve its expected goals in the future.

The resource-based view cannot be conducted by anyone outside the organization. The managerial staff or the organization can conduct resource-based view to get a clear idea about the current resources, assets, competencies and the capabilities that the organization have which can use to potentially deliver competitive advantage in the future (Fraj, et al., 2013). In resource-based view, the organization selects which of the strategy will best exploit the resources and the capabilities of the organization in comparison to the external opportunities that the organization may avail. The classification of these strategies are

  1. Price positioning
  2. Innovation positioning
  3.  Quality positioning
  4. Service positioning
  5. Tailored positioning
  6. Benefit positioning

Once the organization selects which of the above strategies will best help them to exploit their internal capabilities, they start working toward it to achieve their goals. The resource-based view has also been highly criticized by many strategists. They claim that resource-based view is tautological. They think that the theory of RBV has limited perspective implications. This criticism opens the way for more research in the field so that more outcomes can be gained and the criticism can be stopped.


SWOT analysis is also a strategic technique which is used for analyses of internal environment of tourism industry. The internal factors like strengths, weaknesses, opportunities and threats are analysed to find out the current position of the company and how it can be improved in the future (Grant, 2016). The four parts of SWOT analysis are

  1. Strengths
  2. Weaknesses
  3. Opportunities
  4. Threats


The internal capabilities and strengths of the organization are assessed to find out where the organization currently stands and what the organization is capable of doing. The tourism spots in Australia are unique and appeal tourists across the globe. The epicurean tourist destinations of the Australia are the major strength strengths of this industry. The aviation sector of Australia provides low cost structure to tourist which gives competitive advantage to the industry and this factor add strength to tourism industry of Australia.


The internal weaknesses of the organization that lack it behind the success are assessed (Brooks, et al., 2014). These weak points are then used to strengthen the organization and make it more competitive in the market. The periodic recessions in global economy are decreasing the spending power of consumers. The dependency of tourism industry on global economic conditions is the weakness of this industry.


The areas where the organization may improve in future are analysed in this section. The opportunities for the organization using its current capabilities and assets are calculated to find out how the organization can improve (Machmud & Sidharta, 2014). The geographical location of Australia increase its proximity to Asia and low cost carriers have reduced the tourism cost. This situation open up new avenues for the tourism industry of Australia.


The internal and external threats that the organization may face are analysed in this section which helps the organization to strengthen in future.  A large number of tourist destinations are emerging across the globe and this is a potential threat for the tourism industry of Australia.


Summing up all, three important tools that can help a company to create its strategic plan especially when it comes to a fierce competition within the country as well as within the industry. An important phenomenon for any firm is to ensure long term stable strategic mission and goals. PESTEL analysis has covered the global strategic operations of tourism industry while SWOT analysis helped in the investigation of industrial challenges. At last, RBV discussed how tourism industry can utilize its resources.


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Fraj, E., Martínez, E. & Matute, J., 2013. Green marketing in B2B organisations: an empirical analysis from the natural-resource-based view of the firm.. Journal of Business & Industrial Marketing, , 28(5), pp. 396-410..

Grant, R., 2016. Contemporary strategy analysis: Text and cases edition.. s.l.:John Wiley & Sons..

Lin, Y. & Wu, L., 2014. Exploring the role of dynamic capabilities in firm performance under the resource-based view framework.. Journal of business research, , 67(3), pp. 407-413..

Machmud, S. & Sidharta, I., 2014. Business models for SMEs in Bandung: Swot analysis.. Jurnal Ekonomi, Bisnis & Entrepreneurship, , 8(1), pp. 51-61..

Rachet, B., 2014. PESTEL analysis and Porters Five Forces For Innocent Drinks Company.. s.l.:Docs..

Yüksel, İ., 2012. Developing a multi-criteria decision making model for PESTEL analysis.. International Journal of Business and Management, , 7(24), p. 52..