Formulation of strategic options in the matrix AODF Matrix AODF Tool Set (between external and internal factors

) that helps staff to develop fou r types of strategies: FOR, DO, FA, DA

FOR Strategies: Use strengths to try to seize the opportunities Strategies OJ: T hey want to overcome the weaknesses opportunities. FA Strategies: Enjoy the stre ngths to avoid or reduce the repercussions of the threats. DA Strategy: These ar e defensive tactics that aim at minimizing the weaknesses and avoid threats.

AODF Matrix used to generate viable strategies. Not necessarily identify what st rategies are best. Not all the strategies identified will be finally selected. Matrix AODF SWOT ANALYSIS OPPORTUNITIES external factor that can benefit the organization if known advanta ge STRENGTHS positive internal feature that enables a competitive advantage Negative internal characteristic weakness can lead to a competitive disadvantage How can ANALYSIS FOR Fortress used to take advantage and seize the opportunity? FA ANALYSIS How can the Fortress used to counteract the effects of the threat th at may undermine the achievement of the objectives? DO ANALYSIS How can overcome the weakness to take advantage and take the chance? DA ANALYSIS How can you beat the weak to counteract the effects of the threat t hat may undermine the achievement of the objectives? THREATS external factor that may affect the organization if not properly prepare d Generic Strategy Formulation · Leadership in costs · the differentiation · Focus Three Generic Strategies Faced with the five competitive forces, there are three potentially successful g eneric strategies to outperform other companies in the industrial sector: General Leadership Differentiation Cost or High Segmentation Approach The Three Generic Strategies STRATEGIC ADVANTAGE STRATEGIC OBJECTIVE

PERCEIVED BY THE CUSTOMER EXCLUSIVE POSITION OF LOW COST ALL INDUSTRIAL SECTORS DIFFERENTIATION GENERAL LEADERSHIP IN COSTS JUST A CLIP IN PARTICULAR O HIGH SEGMENTATION APPROACH Cost Leadership

The company works to achieve the lowest costs of production and distribution, so that allows you to set lower prices than their competitors and win a share of t he market. The key is the concept of "Experience Curve" (unit cost reduction). I t needs to build facilities capable of producing large volumes efficiently, redu ce costs based on experience, rigid cost controls and overhead The low cost comp ared to competitors is the theme that dominates the strategy, although the quali ty , service and other areas may NOT be Differentiation

The company focuses on achieving superior performance in any area important cust omer benefits, valued by the market as a whole. You must create something that i s perceived by the market as unique. Often prevented from achieving a high marke t share. Approach

In this type of business strategy focuses on one or more narrow market segments rather than go after the entire market. The business gets to know the needs of t hese segments and will implement a cost leadership or some form of differentiati on within the target segment. It also prevents obtaining a total market share. Generic Risk Strategies Cost Leadership

Relying heavily on the economy of scale and the experience as "barriers to entry ." Major technological changes may occur to nullify the experience or past learn ing. May neglect innovation by excessive focus on cost. Another competitor is su ccessful in cost leadership and be able to customers. Another competitor mimics the characteristics of the products or services and cancels the effect of differ entiation. the same differentiation and competitors are submarkets within the ta rget segment and develop.

Differentiation

Or High Segmentation Approach