The document discusses various strategic planning concepts including SWOT analysis, TOWS matrix, competitive strategies, cooperative strategies, and competitive tactics. It provides examples of each using Nokia corporation. It defines key terms and analyzes Nokia's internal strengths and weaknesses as well as external opportunities and threats. Strategies are proposed to take advantage of opportunities and address weaknesses and threats. Criticisms of SWOT analysis are outlined. The importance of adjusting strategies based on performance is discussed.

1. Strategy Formulation Situation
Analysis and Business Strategy
The supervisor Dr.Radwan
ALkharabsheh
By: Samya Mahmood Alghazo
26/oct/2014

3. The strategic planning or long range planning, is
concerned with developing a corporation mission,
objective, strategies, and policies.
Is an acronym used to describe the particular
Strengths, Weaknesses, Opportunities, and
Threats, that are a strategic factors for a specific
company.
Strategy
formulation:
SWOT
analysis:
TOWS
Matrix:
Which is another way of saying SWOT,
illustrates how the external Opportunities and
Threats, can be matched with the company’s
internal Strengths and Weaknesses.
•Definitions

4. •TOWS analysis
WO Strategies attempt to
take advantage of
Opportunities by
overcoming weaknesses.
SO Strategies are
generated when the
company uses its
strengths to take
advantage of
opportunities.
WT Strategies are
basically defensive and
act to minimize
Weaknesses and avoid
Threats.
ST Strategies are
when the company’s or
unit’s uses Strengths
as a way to avoid
threats.

5. 1. Strong research and
development.
2. Creative and known for
its innovation,durability
and reliability.
3. Is the globe’s biggest
producer of mobile
phones.
4. the biggest network of
distribution .
1. In 2010 profits had
dropped by 40%.
2. Weak presence in USA’
and Japan’s cellular
market.
3. Higher prices as
compared to China
mobiles.
INTERNAL
WEAKNESSES
• SWOT analysis for Nokia corporation
As an
example
from
www.mba-
lectures.com
INTERNAL
STRENGTHS

6. 1. Nokia has 50-50 joint
venture with Siemens in
Germany.
2. Has enormous demand
potential in new
developing markets like
India and China.
3. In 2010 the global growth
was 14.6.
1. Strong price pressure.
2. Loosing after the arrival
of several Chinese
manufacturers .
3. In the Asia/Pacific The
five competitive forces are
emerged.
4. Difficult to differentiate
products.
• SWOT analysis for Nokia corporation
EXTERNAL
OPPORTUNITIES
EXTERNAL
THREATS

7. • Increase presence in
Germany by offering
innovative and reliable
products/(o1,s1,s2,s3).
• increase presence in Asia
Pacific by being customer
driven/ (o2,o3,s1,s2,s3,
s4).
• Increase profit by penetrating in
different markets by offering
customer driven product/
(w1,o1,o3).
• Focus on USA market s with
joint venture and new products/
( w2,o3).
• Improve position in Japan
with partnership/(w1,o2,o3)
• TOWS analysis for Nokia corporation
SO STRATEGIES WO STRATEGIES

8. • Make low overall cost/
(t1,s1,s2,s3,s4).
• Focus on customer-oriented
products/(t2,s1,s2,s3).
• Offering cost-efficient
products and brand image/
(t3,t4,s1,s2,s3,s4)
• Offering customer specific
products and giving
periodical discounts/(t1,
t3,t4,w1,w2,w3).
• Use brand image/(t2,w2).
• TOWS analysis for Nokia corporation
ST STRATEGIES WT STRATEGIES

9. 1. It generates lengthy lists.
2. It uses no weights to reflect
priorities.
3. It uses ambiguous words and
phrases.
4. The same factor can be
used in two categories.
5. There is no obligation to
verify opinions with data or
analysis.
6. It requires only a single level
of analysis.
7. There is no logical link to
strategy implementation.
•Primary criticisms of SWOT analysis

10. • Reexamination of an organization’s mission and
objectives must be made before alternative
strategies can be generated and evaluated
• When there is a gap between planned and
achieved objectives; the strategies have to be
changed to improve performance, or objectives
need to be adjusted to be more realistic.
• Finding a propitious niche (which is a need in the
market place that is currently unsatisfied) by the
Strategic Window which is a unique market
opportunity that is available only for a particular
time.

11. • Business strategy
focuses on improving the
competitive position of a
company’s products or
services within a specific
industry or market
segment.
• Competitive strategies:
battling against all competitors
for advantage.
• Lower cost :is the ability to
design, produce, and market
the product more efficiently
than its competitors.
• Differentiation: is the ability to
provide unique and superior
value to the buyers in terms of
product quality, special
features, or after sale service.
• Cooperative
strategies:
Is used to gain
competitive
advantage within an
industry by working
with other firms.
•Business strategies

12. Competitive strategies

13. Industry structure and competitive strategy
•Fragmented industry where many small and medium
sized local companies compete for relatively small
shares of the total market ,Focus strategies will likely
predominate. Ex: Indian Sugar Industry.
•Consolidated industry dominated by a few large
companies with large market share and has the ability
to achieve cost leadership or differentiation.

14. Competitive tactics
A tactic is a specific operating plan that details how a
strategy is to be implemented in terms of when and
where it is to be put into action.
By there nature Tactics are narrower in scope and
shorter in time horizon than are strategies.

15. Competitive Tactics
• Market location tactics :
2.Defensive tactic usually takes place in the firm’s
own current market position .
Where to compete and where the
company implements
a strategy.
1.Offensive tactics usually takes place in an
established competitor’s market location

16. • Frontal assault: the attacking firm goes head to head with its
competitor ,it matches the competitor in every category, from price
to promotion to distribution channels.
• Flanking maneuver: rather than going head to head, a firm may
attack a part of the market where the competitor is weak.
• Bypass attack: change the rule of the game, by offering a new type
of product that makes the competitor’s unnecessary.
• Encirclement: the firm has a greater product variety and/or serves
more markets.
• Guerrilla warfare: a new entrant or small firm can make some gains
without seriously threatening a large established competitor and
evoking some form of retaliation.
Offensive tactics

17. Raise structural barriers:
• Offer a full line of products in every profitable market segment to
close off any entry (ex:CocaCola).
• Block channel access by signing exclusive agreements with
distributors.
• Raise buyer switching costs by offering low-cost training to users.
• Raise the cost of gaining trial users by keeping prices low on items
new users are most likely to purchase.
• Increase scale economies to reduce unit costs.
• Foreclose alternative technologies through patenting or licensing.
Defensive tactics

18. • Limit outside access to facilities and personnel;
• Tie up suppliers by obtaining exclusive contracts or purchasing key
locations.
• Avoid suppliers that also serve competitors.
• Encourage the government to raise barriers, such as safety and
pollution standards or favorable trade policies.
 Increase expected retaliation:
this tactic is any action that increase the perceived threat
of retaliation for an attack.
Lower the inducement for attack:
Reduce a challenger's expectations of future profits in the industry.
Defensive tactics

19. Establish a reputation as an industry
leader
Move down the learning curve to
Assume the cost leader position
Earn temporarily high profits from
buyer who value the product or service
very highly.
A successful first mover can also set the
standard for all subsequent products in
the industry.
First mover or pioneer:
is the first company to
manufacture and sell a
new product or service .
The advantages:
•Competitive advantage
Timing tactics : deals with when to compete and when a company implements a strategy.

20. Keep risks down by waiting until a new
market is established.
Take advantage of the first mover’s
natural inclination to ignore market
segments.
Imitate the technological advances of
others .
Successful late movers tend to be large
firms with considerable resources and
related experiences.
Late mover :
The advantages:
•Competitive advantage
Timing tactics : deals with when to compete and when a company implements a strategy.

21. •Cooperative strategies
collusion
• Is the active
cooperation of
firms within the
industry to
reduce output
and raise prices
to get around
the normal
economic low of
supply and
demand .
Strategic
alliances
• Is a partnership
of two or more
corporations or
business units to
achieve
strategically
significant
objectives .
Mutual service
consortia
• Is a partnership
of similar
companies in
similar industries
that pool their
resources to gain
a benefit that is
too expensive to
develop alone.
Joint
ventures
• Formed by two
or more separate
organizations to
create an
independent
business entity
and allocate
ownership,
financial risks
and rewards to
each member.

22. •Cooperative strategies
Licensing arrangements
• Is an agreement in which
the licensing firm grants
rights to another firm in
another country or
market to produce and
sell a product.
Value chain
partnership
• Is a strong and close
alliances in which one
company or unit forms a
long term arrangement
with a key supplier or
distributor for mutual
advantage.

23. 3.To reduce financial risks.
Number of reasons to form Strategic Alliances
1.To obtain technology and/or manufacturing capabilities.
2.To obtain access to specific markets.
4.To reduce political risks.
5.To learn new capabilities.

24. Thank you
the reference :
Strategic
management and
Business Policy, 11th
Ed. Wheelen, Th. L.
and Hunger,