1.

2.
3.
4.
5.

*

*

*


1.
( Strategic Formulation )

2.
( Strategic Implementation )

3.
( Strategic Evaluation )


( Levels of Strategy )
3
1. Corporate Strategy
2. Business Strategy
3. Functional Strategy

Corporate
level

Business
level

Functional
level

1. Corporate Strategy
3
Growth Strategies
Stability Strategy
Retrenchment

 2
1.

(Concentration Growth Strategy)

2.

( Diversification Growth Strategy)


( Demand >Supply )


( Forward )/
( Backward )

1.
( Horizontal Growth Strategy )
2.
( Vertical Growth Strategy )

 (Horizontal Integration)

+
A
B

 (Vertical Integration)


(Input)
(Process)
(Output) 2

(Backward Integration)

 (Forward Integration)


(Concentric Diversification)

(Conglomerate Diversification)


(Concentric Diversification)

(Economy of Scale)

Concentric Diversification


(Conglomerate Diversification)

Conglomerate Diversification

1.
( Pause or Proceed
with Caution Strategy )
2.
( No Change Strategy )
3.
( Profit Strategy )

Pause or Proceed with Caution Strategy

No Change Strategy

Profit Strategy


1. (Turnaround Strategy)
2. /
(Self-out Divestment Strategy)

3.
(Bankruptcy or Liquidation Strategy)

 (Turnaround Strategy )
/

( Downsizing)

(Reengineering)

 /
(Self-out / Divestment Strategy )

/


( Harvest strategy )


( Bankruptcy or Liquidation Strategy )

 4
(Cost Leadership)

(Differentiation)
(Cost Focus)
(Focus
Differentiation )

Porters Generic Competitive Strategies

46

Porters Competitive Strategies

Cost Leadership:

47

Differentiation:

48


1. (Features)
2. (Performance Quality)
3.
(Conformance Quality)
4. (Durability)
5. (Repair ability)
6. (Style)

Differentiation:

(After-sales services)

(Desirable image)

(Technological innovation)

(Reputation of the firm)


(Manufacturing consistency)

(Status symbol)

Cost focus:

52

Differentiation focus:

53

3.1
3.2
3.3
3.4
3.5
3.6

(Marketing)
(Manufacturing)
(Logistic)
(Finance)
(Human Resource)
(General
Management)