business strategy for academic purpose only

1. 1
BUSINESS LEVEL
STRATEGIES…
(ENABLING COMPETITIVE ADVANTAGE)
(cont’d…)

2. TASKS
2
• I - QUICK RECAP
• II - BUSINESS STRATEGY (INTEGRATED)
• III - CASE STUDY
• IV - SUMMARY & CONCLUSION
• V - EXERCISE/ ASSIGNMENT

3. RECAP
■ WHY ???
■ WHEN ???
■ WHAT ???
STRATEGY
A methodology, to select
best option, from multiple
alternatives
3

4. WHY ???
STRATEGY
- IDENTIFY APPROPRIATE METHOD
- IMPART ADEQUATE TRAINING TO EACH ONE

5. 5
WHEN ???
Triggering
event
•New CEO
•External intervention
•Threat of change in
ownership
•Performance gap
•Strategic inflection/
turning point
Stimulus
for
change
in
strategy
INITIATION OF STRATEGY

6. WHAT ???

7. 7
BUSINESS LEVEL STRATEGY
• Firm-specific business model
• Generic strategies (Porter’s 3 strategies)
• Aims to achieve competitive advantage thru
company’s core competencies like:-
 Efficiency
 Quality
 Innovation
 Customer responsiveness
Cost,
Diffrn,
Focused
Strats
How we intend to compete in a specific industry

8. 8
Distinctive/Core Competencies
■ Firm specific strengths that allows a company to
differentiate its products and/or achieve substantially lower
costs than its rivals and thus gain a competitive advantage
■ They arise from two sources:
 Resources
 Capabilities

9. 9
RESOURCES
DISTINCTIVE
COMPETENCIES
CAPABILITIES
Achieve
Superior:
•Efficiency
•Quality
•Innovation
•Customer
responsiveness
Differentiation
Low cost
Value
creation
profitability
Build
Build
Focused

10. 10
BUSINESS STRATEGIES MATRIX

11. 11

12. 12
Effective Entry Barrier
RISKS Vs BENEFITS ANALYSIS :
FOCUSSED STRATEGIES
BENEFITS

13. 13
RISKS OF FOCUSSED STRATEGIES

14. INTEGRATED STRATEGY
(COST LEADERSHIP +
DIFFERENTIATION)

15. INTEGRATED STRATEGY
■ Also called hybrid/ mixed/ combination competitive strategy
■ Involves high level of emphasis on both cost-leadership
and differentiation strategies simultaneously
■ Seeks to achieve differentiation and low price relative to
competitors
■ Aims to deliver enhanced benefits to the customers with
low price while achieving sufficient margins to reinvest,
maintain and develop differentiatiable features

16. NEED ANALYSIS
16
 Due to increase in global competition
 Produce products with differentiated features or
characteristics that customers value
 Provide these differentiated products at a low cost,
compared to competitors’ products
 Improve ability to adapt quickly to environmental changes
 Learn new skills and technologies
 Optimize resources & capabilities
 Cater to different types of global markets

17. MARKET ANALYSIS
Saturated Market (in highly developed countries)
■ very high purchasing power of customers
■ sophisticated needs of customers (much more than the basic functionalities
of home appliances product)
■ strong competitive rivalry among competitors
■ Examples : North America, Europe, South Korea and Australia.
17

18. 18
MARKET ANALYSIS
Stable Market (in developed countries)
• high purchasing power of customers
• customers’ demand for high quality products (more than the basic
functionalities of home appliances product)
• high level quality products offered by competitors
• Examples : Malaysia, China and Taiwan.

19. 19
MARKET ANALYSIS
Emergent Market (in developing countries)
• low purchasing power of customers
• customers’ need basic functionalities home appliances product
• stiff competitive rivalry
• Examples : Indonesia, Philippines, India, Brazil, few African countries.

20. • Harder to implement than single competitive strategies
• Must simultaneously reduce costs relative to competitor’s
cost, while increasing differentiation
• Can get ‘stuck in the middle’ resulting in no advantages and
poor performance
RISKS
RISK VS BENEFIT ANALYSIS

21. BENEFITS (As compared to single competitive strategies)
22
• Ability to generate superior incremental performance
• Much greater economies of scale
• Brand/ customer loyalty
• Achieve a low-cost position by emphasizing efficiency in
their value creating activities, thereby further strengthening
their competitive position vis-a-vis their rivals
• Used as an Entry strategy
RISK VS BENEFIT ANALYSIS

22. 23

23. 24

24. 25

25. 26
BOWMAN’S STRATEGY CLOCK

26. 27
Focused
cost
BLS APPLICABILITY ANALYSIS

27. 28
CASE STUDY & ANALYSIS :
AUTOMOBILES INDUSTRY
SL
NO
SURVEY PARAMETERS TOYOTA SUZUKI
1. Supply chain mgmt 30 % reduction in supply chain
costs
Cost Leadership
Reduced costs thru efficient
inventory mgmt
Cost Leadership
2. Quality of Customer Service Differentiation Cost Leadership
3. Innovation mgmt Fuel efficient engines, higher
volumes
Low cost
Hybrid engine
Differentiation
4. Human Resource Mgmt offers incentives - single apts，
home loans, paid vacation, dental
care，sport areas, insurances
Differentiation
Data not avl
5. Customer Responsiveness Prompt and efficient
Differentiation
Nexa outlets
Differentiation
6. Efficiency TPS - Kaizen, Low maint cost
Low cost
Low maint cost
Ref : Research paper by C Muller (2011), company reports, open source data

28. SUMMARY OF APPLICATION
29
Business
Strategy
Where has the
strategy been applied
Example of Products/Services
Cost Leadership Developing, transition and
developed economies
(Worldwide)
Cars industry (Toyota),
Airline (Air Asia),
Retail business (D-Mart)
Differentiation Developing, transition and
developed economies
(Worldwide)
Cars and bikes (RR, Mercedes Benz
and Harley Davidson - by Brand)
Watches (Titan Watches - by design)
Domino Pizza (by positioning)
Apple Computers (by technology)
3M (by Innovation)
Hybrid Developing, transition and
developed economies
(Worldwide)
Car Industry (Toyota, Honda)
Furniture Industry (IKEA)

29. CONCLUSION
30
• Will the hybrid strategy become a new trend of
competitive strategy in the business world? ? ?
• This needs further research and investigation into the
theory of hybrid strategy and its implementation
strategies for process and system development in the
business companies.

30. • 2 nd INTERNATIONAL CONFERENCE ON BUSINESS AND
ECONOMIC RESEARCH (2nd ICBER 2011) PROCEEDING
• International Journal of Business and Management; Vol. 7, No. 20;
2012 ISSN 1833-3850 E-ISSN 1833-8119 Published by Canadian
Center of Science and Education
• Acquaah, M. & Yasai-Ardekani, M. (2006) - Does the
implementation of a combination competitive strategy yield
incremental performance benefit? Journal of Business Research
61, 346 – 354.
• Daan Assen’s Learning, (2010) - Hybrid strategy: sustainable
competitive advantage. http://www.daanassen.com/hybrid-strategy-
sustainable-competitive-advantage (3 Jan, 2011).
• Gopalakrishna P. & Subramanian, R. (2001) - Revisiting the Pure
versus Hybrid Dilemma: Porter’s Generic Strategies in Developing
Economy. Journal of Global Marketing Vol.15 (2), 61-79.
• Miller, D. (1992). Generic strategies - classification, combination
and context.
REFERENCES

32. ASSIGNMENT
33
• You are the coach of this ‘Pune Warriors’ football team that
participated in Subroto Mukherjee Cup-2022.
• The coach, no 1 seed & other players were bought by the
team owner @ Rs 1.0 Cr.
• Team reached finals for the first time ever.
• Contained defending champs from scoring any goal and
then scored a goal at the last moment to record a maiden
victory, winning Rs 2.0 Cr prize money.
Q. As a Coach, pl explain the generic strategy you adopted
for your team, with suitable justification, to achieve maiden win.

33. 36
A 2. As a coach(Business Mgr), to accomplish mission,
Objectives
More emphasis on physical & mental fitness levels
Increase field trg for better endurance
team building exercises to identify best combination of players
for offensive play
SWOT analysis of own and rival teams to formulate a game
plan.
Strategy Differentiation thru
quality of players
Rigorous training towards team building

34. 37
JAI HIND