GRAND STRATEGIES

WILBUR DALMEIDA

DEFINITION
It is often called as master or business strategies , are intended to provide basic direction for strategic action.
DRAW BACKS

Decision makers do not recognize the range of alternative grand strategies available. Decision makers may generate lists of promising grand strategies but lack a logical and sytematic approach to selecting an alternative.

12 GRAND STRATEGIES
1. Concentration: The firm directs its resources to the
profitable growth of a single product, in a single market and with a single technology. This strategy is easy to understand. It is typically lowest in risk and in additional resources required. This strategies succeed for so many businesses, a firm can gain competitive advantages over its more competitors in production skill, marketing knowhow, sensitivity and reputation.

2. Market development: it consists of marketing

present products, often with only cosmetic modifications, to customers in related market areas by adding different channels of distribution or by changing the content of advertising or the promotional media.

3. Product development : It involve substantial

modification of existing products or creation of new but related items that can be marketed to current customers through established channels. The product development strategy is often adopted either to prolong the life cycle of current products or to take advantage of favorable reputation and brand name.

4. Innovation : In many industries it is increasingly risky

not to innovate. Some industries find it profitable to base their grand strategy on innovation. They seek to reap the initially high profits associated with customer acceptance of a new or greatly improved product. Rather than face stiffening competition as the basis of profitability shifts from innovation to production or marketing competence.

5. Horizontal

integration : when the long term strategy of

a firm based on growth through the acquisition of one or more similar businesses operating at the same stage of the production marketing chain is called horizontal integration. Such acquisitions provide access to new markets for the acquiring firm and eliminate competitors. 6. Vertical integration : when the grand strategy of a firm involves the acquisition of businesses that either supply the firm with inputs for the firms outputs , vertical integration is involved.