Examples of market penetration strategy

1. Encourange current cust- Colgate, increase the diameter of nosal

2. Attract new customers-HUL, toothpaste forehand
3. Encourage non user- colgate dental cream, dental camps in school age 9-11 (class 4,5,6).
Donated a brush and paste

Market development

1. Current mkt in retail: Hero motos- Splenda- workshop and tieup with ntpc
2. Add distribution channels- Army, airforce canteens – approval for rates- DGSND rate contact,
products is 30-40% cheaper
3. Geog markets- Sayagee group hospitalities- Barbeque nations

Product development

1. Develop optional features- CDV- Customer delivered value(Same as CPV), used by

autmobiles company eg alloy wheels or normal wheels
2. Categorize customers- Segmentaion- HUL- Dove
3. Technology- Telecom companies

Integrative growth

1. Backward
2. Forward
3. Horizontal

Diversification

1. Concentric- Trucks
2. Horizontal- Maruti cars and Maruti finance (Provides finance to customers to buy car)-
Caters to the same customers but business is totally different
3. Conglomerate- Tata sons- Tata steels tata motots, TCS

Corporate and divisional strategic planning

Downsizing

1. Pruning- Cut off some SKUs or prdouc or brands if u have many

2. Harvesting- Don’t invest
3. Divesting- Sell the business

Business strategic planning (SBU Level)

Business mission

External environment (OT)

Internal Environment (SW)

Goal formulation

Strategy formulation

Program formulation
Implementation

Feedback and control

Swot- resource prioritization tool

Opportunity- A business opportunity is an area of customer need in which a firm may perform
profitably. A business oppo is analysed like this- opportunity grid (ss)

Payoff Payoff
High Low
Success High Exploit Discuss
Probability Low Discuss Ignore

Threat- A buss threat is a change in the external environment which in the absence of defensive
action by the firm would lead to a reduction in the firm’s revenues or profits.

Impact seriousness Impact seriousness

High Low
Probability of High Contingency plan Discuss
occurrence
Probability of Low Discuss Ignore
occurrence

OS- is an internal resource, process or situation which enables us to exploit an opportunity

OW- is an internal inadequacy or hurdle which prevents us from exploiting an opportunity fully.

TS- is an internal strength which protects us from a threat in case the threat materializes.

TW- A TW is an internal inadequacy which makes us vulnerable to a threat in case the threat occurs.

In business, we first survive and then we thrive. First is survival then prosperity

1st priority- TW

2nd – TS

3rd- OS

4th- OW
Class 9,10

1. Threat of new entrants:

Barriers to entry

1. Economies of scale- If Economies of scale are high, it acts as an entry barriers, therefore
threat from new entrants are low. If economies of scale are low, Then entry barrier is low,
therefore threat from new entrants Is high.
2. Product differentiation: If PD is high, then new entrants may not enter and vice versa
3. Capital requirements- If CR is high, entry barrier is high
4. Switching costs- if existing customer can switch to new entrant easily, than threat is high
5. Access to distribution channels- if access is major factor and a constraint then entry barrier is
high and threat is low, if access is a major factor but is not a constraint, entry barrier is low
and threat is high. If access is not a major factor, then this aspect is not relevant
6. Cost disadvantages independent of scale: if cost disadvantages are there threat is low
7. Government of policy- reducing taxes- threat is high, higher tariffs threat is low
8. Expected retaliation- expected response from existing players is weak threat is high, if
response from existing player is strong threat is low

Developing a strategy

 Position your company when the forces are weakest

 Exploit changes in the forces
 Reshape the forces in your favor
o Supplier power
o Buyer/ customer power
o Within segment competition
o New entrants
o Threat of substitutes

Sectoral analysis/Placements:

 Vision- Core values, core purpose

 B hag
 Overall strategy:
o Part A- Differentiated positioning, trade off and activity fir
o Part B: Hambricks diamond
 Resource allocation
o BCG/GE
 Product level/line-
o Swot analysis
o Porters
Project

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