Popular strategy diagrams

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Popular strategy diagrams

  1. 1. Fig. 8-4: Grand Strategy Selection Matrix Overcome Weakness Maximize Strengths Vertical integration Conglomerate diversification Horizontal integration Concentric diversification Joint venture Turnaround or retrenchment Divesture Liquidation Concentrated growth Market development Product development Innovation Internal (redirected resources within the firm) External (acquisition or merger for resource capability) I IV III II
  2. 2. Fig. 8-5: Model of Grand Strategy Clusters Rapid Market Growth Slow Market Growth <ul><li>Reformulation of concentrated growth </li></ul><ul><li>Horizontal integration </li></ul><ul><li>Divestiture </li></ul><ul><li>Liquidation </li></ul><ul><li>Turnaround or retrenchment </li></ul><ul><li>Concentric diversification </li></ul><ul><li>Conglomerate diversification </li></ul><ul><li>Divestiture </li></ul><ul><li>Liquidation </li></ul><ul><li>C oncentrated growth </li></ul><ul><li>Vertical integration </li></ul><ul><li>Concentric diversification </li></ul><ul><li>Concentric diversification </li></ul><ul><li>Conglomerate diversification </li></ul><ul><li>Joint ventures </li></ul>Strong Competitive Forces Weak Competitive Forces I II III IV
  3. 3. Fig. 9-1: The BCG Growth-Share Matrix Cash Generation (market share) High Low High Low Cash Use (growth rate)
  4. 4. Fig. 8-5: BDC’s Growth/Share Matrix
  5. 5. Fig. 9-1: The BCG Growth-Share Matrix <ul><li>Market Share </li></ul><ul><li>Sales relative to those of other competitors in the market (dividing point is usually selected to have only the two-three largest competitors in any market fall into the high market share region) </li></ul><ul><li>Growth Rate </li></ul><ul><li>Industry growth rate in constant dollars (dividing point is typically the GNP’s growth rate) </li></ul>Description of Dimensions
  6. 6. Fig. 9-3: Industry Attractiveness-Business Strength Matrix Industry Attractiveness High Low Medium High Medium Low Business Strength
  7. 7. Fig. 9-3: Industry Attractiveness-Business Strength Matrix Industry Attractiveness Subjective assessment based on broadest possible range of external opportunities & threats beyond the strict control of management Business Strength Subjective assessment of how strong a competitive advantage is created by a broad range of the firm’s internal strengths & weaknesses Description of Dimensions
  8. 8. Fig. 9-4: The Market Life-Cycle Competitive Strength Matrix Stage of Market Life Cycle Introduction Growth Maturity Decline Low Moderate High Competitive Strength Push: Invest Aggressively Caution: Invest Selectively Danger: Harvest
  9. 9. Fig. 9-4: The Market Life Cycle - Competitive Strength Matrix Stage of Market Life Cycle See page 197 Competitive Strength Overall subjective rating, based on a wide range of factors regarding the likelihood of gaining & maintaining a competitive advantage Description of Dimensions
  10. 10. The business unit competitive position Strong Average Weak Fig. 8-10: The Life-Cycle Portfolio Matrix Development Growth Competitive shakeout Maturity Decline Saturation Th e Industry’s stage in the evolutionary life cycle
  11. 11. Fig. 8-7: The GE Nine-Cell Planning Grid

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