This document provides an overview of business strategy concepts. It defines strategy and outlines its key features and benefits. The document then discusses the strategic intent process, including vision, mission, objectives, formulation, implementation, and evaluation. It covers different types of strategies such as integration, intensive, diversification, and defensive strategies. The document also explains the three levels of strategy - corporate, business, and functional - and provides details on corporate and business-level strategies. Finally, it introduces the Boston Consulting Group (BCG) matrix model for portfolio analysis.

1. Submitted To:-
Dr. Anupama Paliwal
Submitted By:-
Vipul Rajpurohit
Surbhi Tiwari
Sunil Choudhary
Vaishali Tomar
Vaibhavi Sharma
Vedika Shukla

2. A method or plan chosen to bring about a desired
future, such as achievement of a goal or solution to a
problem.
The art and science of planning and marshalling
resources for their most efficient and effective use.
The term is derived from the Greek word for
generalship or leading an army.
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3. Features Of Strategy
 It is generally long-run in nature. It discounts the future to
analyse its impact on present activities.
 It is an action plan and more specific than objectives.
 It is a single-use plan made for non-repetitive activities. It
provides direction to goals.
 It is formulated by top-level managers and provide a guide for
middle and lower-level managers to make sub-strategies.
 It coordinates organization’s internal environment with the
external environment.
 It enables the firm to outperform the competitors.
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4. Benefits Of Strategy
Benefits of
strategy
Ressource
allocation
Competitive
advantage
Broad
improvement
Customer
focus
ConsistencyThinking
Opportunities
& threats
Change
ready
Improved
communication
Conflict
reduction
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5. Strategic Intent
• Vision
• Mission
• Objectives
Strategy
Formulation
• SWOT Analysis
• Corporate-
level strategy
• Business- level
strategy
• Strategic plan
Strategy
Implementation
• Project
• Procedural
• Resource
allocation
• Structural
• Behavioral
Strategic
Evaluation
• Analysis and
assessment
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6. TYPES OF STRATEGIES
Types of
Strategies
Integration
Strategies
Intensive
Strategies
Diversification
Strategies
Defensive
Strategies
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7. INTEGRATION
STRATEGIES
Integration
Strategy
Vertical
Integration
Forward
Backward
Horizontal
Integration
• Integration strategy is
also called
management control
strategy.
• Integration strategies
allow a firm to gain
control over
distributors, suppliers
or competitors.
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8. INTENSIVE
STRATEGIES Market
Penetration
Market
Development
Product
Development
Intensive
Strategies
The aim of intensive strategies is
to broaden the market share and
to increase the profit by making
the existing products more
effective and by introducing
new and various sets of products
in order to increase the market
share too.
The strategies require intensive
efforts if a firm’s competitive
position with existing products
is to improve.
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9. DIVERSIFICATION
STRATEGIES
A diversification strategy is the
strategy that an organization
adopts for the development of its
business. This strategy involves
widening the scope of the
organization across different
products and market sectors. The
strategy is to enter into a new
market or industry which the
organization is not currently in,
whilst also creating a new product
for the new market.
Diversification
Strategies
Related
Diversification
Unrelated
Diversification
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10. DEFENSIVE
STRATEGIES
Defensive
Strategies
Joint Venture
Divestiture
Liquidation
 Primary purpose is to
make possible attacks
unattractive or discourage
competitors.
 It is a strategy that can be
used to keep up top
position in local and
existing market.
 This strategy is mostly
successful to keep up the
customer’s confidence
which no new competitor
can disturb.
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11. 3 Levels of Strategy
Corporate
Business
Functional
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12. CORPORATE LEVEL
STRATEGIES
• The overall scope and direction of a corporation and the way in which
its various business operations work together to achieve particular
goals.
• Corporate level strategies are basically about decision related to:
 Allocating resources among the different businesses to others.
 Transferring resources from set of businesses to others.
 Managing and nurturing a portfolio of businesses.
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13. TYPES OF CORPORATE
STRATEGIES
Stability Strategies
Expansion Strategies
Retrenchment Strategies
Combination Strategies
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14. Characteristics Of Corporate Strategy
 It is formulated at the top level management, though middle and lower level
managers are associated in their formulation and in designing sub-strategies.
 It is generally meant to cope with a competitive and complex environment.
 It provides unified criteria to managers in the function of decision making.
 It is intended to handle complexity and reduce uncertainty of the environment.
 It is generally long range in nature, though it is valid for short-range situations.
 It is concerned with perceiving opportunities and threats and seizing initiatives
to cope with them.
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15. BUSINESS LEVEL STRATEGIES
 Business-level strategy focuses on how to attain and satisfy customers, offer
goods and services that meet their needs, and increase operating profits. To do
this, business-level strategy focuses on positioning itself against competitors
and staying up-to-date on market trends and technology changes.
 Customers are the foundation or essence of a organization’s business-level
strategies. Who will be served, what needs have to be met, and how those
needs will be satisfied are determined by the senior management.
 Who are the customers?
Demographic, geographic, lifestyle choices (tastes & values), personality
traits, consumption patterns (usage rate & brand loyalty).
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16.  What are the goods and services that potential customers need?
Knowing ones customers is very important in obtaining and sustaining a
competitive advantage . Being able to successfully predict and satisfy
future customer needs is important.
 How to satisfy customer needs?
Organizations must determine how to bundle resources and capabilities to
form core competencies and then use these core competencies to satisfy
customer needs by implementing value-crating strategies.
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BUSINESS LEVEL STRATEGIES

17. TYPES OF BUSINESS-LEVEL
STRATEGIES
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Cost Leadership Strategy
Differentiation Strategy
Focus Strategy
Focused Cost Leadership Strategy
Integrated Cost Leadership

18. Cost Leadership
Strategy
An integrated set of action
taken to produce goods or
services with features that are
acceptable to customers at the
lowest cost, relative to that of
competitors with features that
are acceptable to customers.
• Relatively standardized
products
• Features acceptable to many
customers
• Lowest competitive price
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19. Differentiation
Strategy
Objective
Incorporate differentiating
features that cause buyers to
prefer firm’s product or service
over the brand of rivals.
 Key to success
o Find ways to differentiate that
create value for buyers.
o Not easily matched or cheaply
copied by rivals.
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20. Focus Strategy
Objective
o Involves concentrated attention on a
narrow piece of the total market.
o Serve niche buyers better than rivals
 Characteristics
o Achieve LOWER COSTS than rivals in
serving the segment.
-- A low-cost strategy
o Offer niche buyers something
different from rivals.
-- A differentiation strategy
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21. Functional Level Strategies21

22. Boston Consulting Group (BCG)
Matrix is developed by Bruce Henderson of the
Boston Consulting Group in the early 1970’s.
According to these technique, business or
products are classified as low or high
performance depending upon their market
growth rate and relative market share.
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23. Relative Market share & market growth
To understand the Boston Matrix you need to understand
how market share and market growth are inter related
Market Share:- Market Share is the percentage of the total
market that is being serviced by your company measured either
in the revenue terms or unit volume terms.
Relative Market Share:-
Business Unit Sales This Year
Leading Rival Sales This Year
The higher your market share, the higher proportion of the market
you control.
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RMS =

24. Market Growth Rate
 Market Growth is used as a measure
of a markets attractiveness.
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MGR = Individual Sales this year – Individual Sales Last Year
Individual Sales Last Year

25. The BCG Growth- Share Matrix25

26. BCG Growth - Share Matrix
It is portfolio planning model which is based on the observation that
the company’s business unit can be classified in to four categories.
Question Marks
Stars
Cash Cows
Dog
It is based on the combination of market growth and market share
relative to the next based competitor.
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27. 27

28. Question Mark / Problem Children
{High Growth, Low Market Share}
 Most business start of as
Question Marks.
 They will absorb great amount
of cash if the market share
remains unchanged(low).
 Question Marks have potential
to become Star and evenly
Cash Cow but can also become
Dog.
 Investment should be high for
Question Marks.
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29. Stars
(High Growth, high market share)
 Stars are leader in
business.
 They also require heavy
investment to maintain its
large market share.
 It leads to large amount
of cash consumption and
cash generation.
 Attempts should be made
to hold the market share
otherwise The Star Wheel
become a Cash Cow.
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30. Cash cows
(low growth , high market share)
 They are foundation of the
companies and often the
Stars of yesterday.
 They generate more cash
than required.
 They extract the profits by
investing as little cash as
possible.
 They are located in an
industry that is mature, not
growing or declining.
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31. Dogs
(low growth , low market share)
Dogs are the cash
traps.
High Cost – Low
Quality
Business is situated
at a declining stage.
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32. Benefits of bcg matrix
BCG Matrix is simple and easy to understand.
It helps to quickly and simply screen the opportunity
open to you, and help you think about how you can make
the most of them.
It is used to identify how corporates cash resources can
best be used to maximizes company’s future growth and
profitability.
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33. limitations of bcg matrix
BCG Matrix uses only two dimensions :
 Relative Market Share
 Market Growth Rate
Problem of getting data on market share and market
growth.
High market share does not mean profits all time.
Business with market share can be profitable too.
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