Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
2,131
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
53
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Summary Slide
    • Chapter 5
    • Situational Analysis
    • Situational Analysis
    • Situational Analysis
    • Situational Analysis
    • TOWS Matrix
    • Resource-Based Approach
    • Business Strategies
  • 2. Summary Slide (cont.)
    • Porter’s Competitive Strategies
    • Porter’s Competitive Strategies
    • Porter’s Competitive Strategies
    • Porter’s Generic Competitive Strategies
    • Porter’s Competitive Strategies
    • Porter’s Competitive Strategies
    • Porter’s Competitive Strategies
    • Porter’s Competitive Strategies
  • 3. Summary Slide (cont.)
    • Porter’s Competitive Strategies
    • Competitive Strategy
    • Competitive Strategy
    • Dimensions of Quality
    • Competitive Strategy
    • Competitive Strategy
    • Competitive Tactics
    • Competitive Tactics
  • 4. Summary Slide (cont.)
    • Competitive Tactics
    • Competitive Tactics
    • Cooperative Strategies
    • Cooperative Strategies
    • Cooperative Strategies
  • 5. Chapter 5 Strategy Formulation: Situation Analysis and Business Strategy
  • 6. Situational Analysis
    • Strategy formulation:
      • Strategic planning or long-range planning
        • Develops mission, objectives, strategies and policies
  • 7. Situational Analysis
    • Situational Analysis:
      • Process of finding a strategic fit between external opportunities and internal strengths while working around external threats and internal weaknesses.
  • 8. 5 1 2 3 4 Strategic Factor Analysis Summary (SFAS) Strategic Factors (Select the most important opportunities/threats from EFAS, Table 3.4 and the most important strengths and weaknesses from IFAS, Table 4.2) Total Score Weight Rating Weighted Score Comments SHORT INTERMEDIATE LONG Duration 6
  • 9. Strategic Factors (Select the most important opportunities/threats from EFAS, Table 3.4 and the most important strengths and weaknesses from IFAS, Table 4.2) S1 Quality Maytag culture (S) S3 Hoover’s international orientation (S) W3 Financial position (W) W4 Global positioning (W) O1 Economic integration of European Community (O) O2 Demographics favor quality (O) O5 Trend to super stores (O + T) T3 Whirlpool and Electrolux (T) T5 Japanese appliance companies (T) Total Score Weight Rating Weighted Score Comments 1.00 SHORT INTERMEDIATE LONG Duration 3.05 .10 .10 .10 .15 .10 .10 .10 .15 .10 Quality key to success Name recognition High debt Only in N.A., U.K., and Australia Acquisition of Hoover Maytag quality Weak in this channel Dominate industry Asian presence 5 3 2 2 4 5 2 3 2 .50 .30 .20 .30 .40 .50 .20 .45 .20 Strategic Factor Analysis Summary (SFAS): Maytag as Example X X X X X X X X X
  • 10. Situational Analysis
    • Niche:
      • A need in the marketplace that is currently unsatisfied.
    • Goal for the Corporation
      • Find a propitious niche
        • An extremely favorable niche
      • Strategic window
        • Unique market opportunity available for a limited time
  • 11. Situational Analysis
    • SWOT analysis:
      • Internal
        • Strengths
        • Weaknesses
      • External
        • Opportunities
        • Threats
  • 12. TOWS Matrix
  • 13. Resource-Based Approach
    • Resource:
    • An asset, competency, process, skill, or knowledge controlled by the corporation.
  • 14. Business Strategies
    • Business Strategy :
    • Focuses on improving the competitive position of a company’s or business unit’s products or services within the specific industry or market segment that the firm serves.
  • 15. Porter’s Competitive Strategies
    • Competitive Strategy:
      • Low cost?
      • Differentiation?
      • Compete head to head in large market?
      • Focus on niche?
  • 16. Porter’s Competitive Strategies
    • Generic Competitive Strategies:
      • Lower cost strategy
        • Design, produce, market more efficiently than competitors
      • Differentiation strategy
        • Unique and superior value in terms of product quality, features, service
  • 17. Porter’s Competitive Strategies
    • Competitive Advantage:
      • Determined by Competitive Scope
        • Breadth of the company’s target market
  • 18. Porter’s Generic Competitive Strategies
  • 19. Porter’s Competitive Strategies
    • Cost Leadership:
      • Low-cost competitive strategy
      • Aimed at broad mass market
      • Aggressive construction of efficient-scale facilities
      • Cost reductions
      • Cost minimization
  • 20. Porter’s Competitive Strategies
    • Differentiation:
      • Broad mass market
      • Unique product or service
      • Charge premiums
      • Lower customer sensitivity to price
  • 21. Porter’s Competitive Strategies
    • Cost focus:
      • Low cost competitive strategy
      • Focus on particular buyer group or market
      • Niche focused
      • Seek cost advantage in target market
  • 22. Porter’s Competitive Strategies
    • Differentiation focus:
      • Focus on particular group or geographic market
      • Seek differentiation in targeted market segment
      • Serve special needs of narrow target market
  • 23. Porter’s Competitive Strategies
    • Stuck in the middle:
      • No competitive advantage
      • Below-average performance
  • 24. Risks of Generic Competitive Strategies Risks of Cost Leadership Cost leadership is not sustained: • Competitors imitate. • Technology changes. • Other bases for cost leadership erode. Proximity in differentiation is lost. Cost focusers achieve even lower cost in segments. Risks of Differentiation Differentiation is not sustained: • Competitors imitate. • Bases for differentiation become less important to buyers. Cost proximity is lost. Differentiation focusers achieve even greater differentiation in segments. Risks of Focus The focus strategy is imitated: The target segment becomes structurally unattractive: • Structure erodes. • Demand disappears. Broadly targeted competitors overwhelm the segment: • The segment’s differences from other segments narrow. • The advantages of a broad line increase. New focusers subsegment the industry.
  • 25. Competitive Strategy
    • Industry Structure:
      • Fragmented Industry
        • Many small and medium-sized local companies compete for small shares of total market
          • Focus strategies predominate
  • 26. Competitive Strategy
    • Industry Structure:
      • Consolidated industry
        • Mature industry dominated by a few large companies
          • Cost Leadership or Differentiation predominate
  • 27. Dimensions of Quality Quality
    • Performance
    • Features
    • Reliability
    • Conformance
    • Durability
    • Serviceability
    • Aesthetics
    • Perceived Quality
    Dimensions
  • 28. Competitive Strategy
    • Strategic rollup:
      • Quickly consolidate fragmented industry
      • Money from venture capital
      • Entrepreneur acquires hundreds of owner-operated firms
      • Creates large firm with economies of scale
  • 29. Competitive Strategy
    • Strategic rollup:
      • Differ from Conventional M&A’s
        • Large number of firms
        • Owner-operated firms
        • Goal to reinvent entire industry
  • 30. Competitive Tactics
    • Tactic:
      • Specific operating plan detailing how a strategy is to be implemented in terms of when and where it is to be put into action.
        • Timing tactics
        • Market location tactics
  • 31. Competitive Tactics
    • Timing Tactics:
      • First mover (pioneer)
        • Reputation as industry leader
        • High profits
        • Sets standards for subsequent products in the industry
      • Late mover
        • Able to imitate technological advances of others
          • Keeps R&D costs down
          • Keeps risks down
  • 32. Competitive Tactics
    • Market Location Tactics:
      • Offensive Tactics
        • Frontal assault
        • Flanking maneuver
        • Bypass attack
        • Encirclement
        • Guerrilla warfare
  • 33. Competitive Tactics
    • Market Location Tactics:
      • Defensive Tactics
        • Raise structural barriers
        • Increase expected retaliation
        • Lower the inducement for attack
  • 34. Cooperative Strategies
    • Cooperative Strategies:
      • Collusion
        • Active cooperation of firms to reduce output and raise prices
          • Explicit
          • Tacit
  • 35. Cooperative Strategies
    • Cooperative Strategies:
      • Strategic Alliance:
          • Partnership of two or more corporations or business units to achieve strategically significant objectives that are mutually beneficial.
  • 36. Cooperative Strategies Strategic Alliance Access to markets Achieve competitive advantage Obtain technology Reduce financial risk Reduce political risk
  • 37. Continuum of Strategic Alliances Mutual Service Consortia Joint Venture Licensing Arrangement Weak and Distant Value-Chain Partnership Strong and Close Source: Suggested by R. M. Kanter, “Collaborative Advantage: The Art of Alliances,” Harvard Business Review (July-August 1994), pp. 96–108.