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The Forces that  Shape Company Strategy
<ul><li>You know that to sustain long-term Success and Profitability you must respond strategically to competition </li></...
<ul><li>According to Porter, there are 04 competitive forces that can harm our company success:  </li></ul><ul><ul><li>Sav...
<ul><li>Definition of Savvy Customer: </li></ul><ul><ul><li>Well informed and perceptive Customer. </li></ul></ul><ul><li>...
<ul><li>Definition of Supplier: </li></ul><ul><ul><li>Someone whose business is to supply a particular service or commodit...
<ul><li>Definition of Aspiring: </li></ul><ul><ul><li>To have a great ambition or ultimate goal; desire strongly </li></ul...
<ul><li>New products and services can lure customers away with new: </li></ul><ul><ul><li>Opportunities, </li></ul></ul><u...
Forces that Shape Strategy  Ways to deal and overcome the Forces <ul><li>We need to reshape the forces in our favor, based...
Forces that Shape Strategy  Ways to deal with the Forces Main Goal Action Neutralize  the Supplier Power Standardize speci...
Forces that Shape Strategy  Ways to deal with the Forces Main Goal Action To counter  customer power Expand your services ...
Forces that Shape Strategy  Ways to deal with the Forces Main Goal Action To scare off new entrants Elevate the fixed cost...
Author  Roberto Lico Jr. www.licoreis.com [email_address] [email_address] Linkedin: http://goo.gl/UgCKE Twitter: @licoreis
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Forces that Shape our Company Strategy

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Forces that Shape our Company Strategy

  1. 1. The Forces that Shape Company Strategy
  2. 2. <ul><li>You know that to sustain long-term Success and Profitability you must respond strategically to competition </li></ul><ul><li>You need to be aware of all the elements that are affecting the: </li></ul><ul><ul><li>Market, </li></ul></ul><ul><ul><li>The Production Line and </li></ul></ul><ul><ul><li>Customers. </li></ul></ul>Forces that Shape Strategy Introduction
  3. 3. <ul><li>According to Porter, there are 04 competitive forces that can harm our company success: </li></ul><ul><ul><li>Savvy Customers, </li></ul></ul><ul><ul><li>Powerful Suppliers, </li></ul></ul><ul><ul><li>Aspiring Entrants and </li></ul></ul><ul><ul><li>Substitute Offerings. </li></ul></ul>Forces that Shape Strategy Introduction
  4. 4. <ul><li>Definition of Savvy Customer: </li></ul><ul><ul><li>Well informed and perceptive Customer. </li></ul></ul><ul><li>Savvy customers can force down prices by playing you and your rivals against one another. </li></ul>Forces that Shape Strategy Competitive Forces – Savvy Customers
  5. 5. <ul><li>Definition of Supplier: </li></ul><ul><ul><li>Someone whose business is to supply a particular service or commodity </li></ul></ul><ul><li>Powerful suppliers may constrain your profits if they charge higher prices. </li></ul>Forces that Shape Strategy Competitive Forces – Powerful Suppliers
  6. 6. <ul><li>Definition of Aspiring: </li></ul><ul><ul><li>To have a great ambition or ultimate goal; desire strongly </li></ul></ul><ul><li>Definition of Entrants: </li></ul><ul><ul><li>One that enters, especially one that enters a competition. </li></ul></ul><ul><li>They are armed with new capacity and hungry for market share. </li></ul>Forces that Shape Strategy Competitive Forces – Aspiring Entrants
  7. 7. <ul><li>New products and services can lure customers away with new: </li></ul><ul><ul><li>Opportunities, </li></ul></ul><ul><ul><li>Benefits, </li></ul></ul><ul><ul><li>Advantages, </li></ul></ul><ul><ul><li>Low Price, </li></ul></ul><ul><ul><li>Feeling of well-being, </li></ul></ul><ul><ul><li>Illusions. </li></ul></ul>Forces that Shape Strategy Competitive Forces – Substitute Offerings
  8. 8. Forces that Shape Strategy Ways to deal and overcome the Forces <ul><li>We need to reshape the forces in our favor, based on new tactics to reduce the impact of profit leaking. </li></ul>
  9. 9. Forces that Shape Strategy Ways to deal with the Forces Main Goal Action Neutralize the Supplier Power Standardize specifications for parts so your company can switch more easily among vendors.
  10. 10. Forces that Shape Strategy Ways to deal with the Forces Main Goal Action To counter customer power Expand your services so it’s harder for customers to leave you for a rival. Main Goal Action To temper price wars initiated by established rivals Invest more heavily in products that differ significantly from competitors’ offerings.
  11. 11. Forces that Shape Strategy Ways to deal with the Forces Main Goal Action To scare off new entrants Elevate the fixed costs of competing; for instance, by escalating your R&D expenditures. Main Goal Action To limit the threat of substitutes Offer better value through wider product accessibility.
  12. 12. Author Roberto Lico Jr. www.licoreis.com [email_address] [email_address] Linkedin: http://goo.gl/UgCKE Twitter: @licoreis

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