How strategy shape structure

KAPIL ALANG (A06) SUKHMAN (A18) AMAN (A19) SACHIN (A20) ABHINAV (A23) NISHTHA (A24) PRIYA (A26)

Summary
y Corporate strategy created by analyzing the industry

and environment condition of the industry in which they operate. y Firm performance depend upon :

Basic structure factors (no. of buyers, suppliers, barriers to entry)

y Position is created by building a competitive

advantage in the market by choosing either differentiation from others or by giving low costs. y Blue ocean strategy is the part of reconstructurlist approach.

Three factors for developing right strategy

y Structure condition y Resources y Capabilities y Strategic mindset

Three strategic approaches

y Structure list approach
Attractive condition Resources and capabilities are good Structure create strategy in this approach

y Reconstruction approach
Structure condition are attractive Lac in resources and capabilities Strategy give rise to the structure

y Mindset approach  If you dont have resources capabilities strategic mindset give rise to good structure condition

3 strategy proposition
y Value proposition  By providing the benefits market attract the buyers and create the value y Profit proposition  By attracting more consumers market get the benefit of large profits in terms of money market share y People proposition  Culture  Incentives  Support system

Examples
y Dubai strategic proposition  Dubai adopt all three strategic proposition y Dubai comparison with china  Value proposition (tax free zone, import and export duties, language barrier is reduced, transparency of regulations)  Profit proposition (dependency on oil revenue, social liability cost, govt. invested in infrastructures through which market make profits)  People proposition (genuine social security system, promote foreign investment by providing less tax and export duties)

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