P.G. GOVT.

COLLEGE
DHARAMSHALA

• Assignment Of :- Strategy Alternatives

• Submitted To :- Dr. Madan Guleria
GROUP
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 STRATEGY
Strategy Formulation is an analytical process of
FORMULATION selection of the best suitable course of action to meet
the organizational objectives and vision.

CLASSIFICATION OF STATEGIES

On The Basis Of On The Basis Of On The Basis Of

Scope Level Direction

A. Cost Leadership A. Corporate Level A. Stability

Strategy B. Business Level B. Expansion
B. Differential C. Functional Level C. Diversification
Strategy D. retrenchment
C. Focus Strategy
 COST LEADERSHIP
STRATEGY
Cost leadership is a term used when a company projects itself as the
cheapest manufacturer or provider of a particular product or commodity in a
competition.
 DIFFERENTIAL STRATEGY
Differential Strategy attempts to become unique in the
industry, by offering those products and services, which
have value to the customers.
 FOCUS STRATEGY
Focus Strategy is selecting one or two segments in the total market to
meet the requirements of target group of Customer.

Maruti Suzuki Vs NEXA

LEVELS OF STRATEGY
 Corporate Level
Strategy

A corporate-level strategy is
when a business makes a decision
that affects the whole company.
The purpose of a corporate-level
strategy is to maximize its
profitability and maintain its
financial success in the future.
 Business Level
Strategy

 Business-level strategy is
concerned with a firm's position
in an industry, relative to
competitors and to the five
forces of competition.
 Functional Level
Strategy

Functional level strategies are the actions

and goals assigned to various departments
that support your business level strategy and
corporate level strategy.
These strategies specify the outcomes you
want to see achieved from the daily operations
of specific departments (or functions) of your
business.
DIRECTION A course of action that leads to the achievement of
OF the goals of an organization's strategy. It is
STATEGY a strategy that a business develops to set the
direction, for which human and material resources
will be applied.
STRATEGIC
ALTERNATIVES

STABILITY EXPANSION DIVESTMENT COMBINATION

INTERSIFICATION DIVERSIFICATION

Market Market Product

Differentiation Development Developmengt
 STABILITY OR STATUS
QUO STABILITY
STRATEGY
When a company feels it has captured enough
market share and focus on sustaining it rather
than trying to increase it be taking their Profit Proceed
No-Change
competitors head on, they maintain a status Strategy with Caution
quo by not trying to expand in other areas.

No-Change Profit Strategy Proceed with

Caution
Incremental
An incremental growth approach might
Growth
take the strategy of gradually building users,
Strategy
increasing by a small number daily.

Market
Concentration A strategic approach in which a business
Strategy focuses on a single market or product.

The objective of the firm under this

Pause strategy is to make the present factor of
Strategy production more productive to assure
future rapid growth.

Sustainable growth is the realistically

Sustainable
attainable growth that a company could
Growth
maintain without running into problems.
Strategy
 EXPANSION OR GROWTH
STARTEGY Features of Expansion Strategy

The method a company uses to expand its

business is mainly contingent upon its
financial position, the competition and even
government directive. 1. It is the mark of Exponential
Growth

2. It Involves Redefinition of the

Business

3. It is Highly Versatile Strategy

4. The Two Routes To

Expansion

5. It is a Generic Strategy
 This strategy can be implemented through
Market exportation licensing, joint ventures, or direct
Development investment.
Strategy

This strategy is based

Product on developing new products or modifying
Development existing products so they appear new, and
Strategy offering those products to current or new
markets.

An innovation strategy is a plan used by a

company to encourage advancements in
Innovation
technology or services, usually by investing
Strategy
money in research and development activities.
Integration Integration strategies allow a firm to gain
Strategy control over distributors, suppliers, and/or
competitors.

A horizontal acquisition is a
business strategy where one company takes
Horizontal &
over another that operates at the same level
Vertical
in an industry. 
Integration
Vertical integration involves
the acquisition of business operations within
the same production vertical.

Forward integration is when a company at

the beginning of the supply chain controls
Backward &
stages farther along.
Forward
Backward integration is when a business at
Integration
the end of the supply chain takes on activities
"upstream."
 DIVERSIFICATION RELATED
DIVERSIFICATION
STRATEGY
Diversification strategy involves
expansion into the new business or
businesses that are outside the current
businesses & market.

DIVERSIFICATION
STRATEGY UNRELATED
DIVERSIFICATION

Related Unrelated
Diversification Diversification
 RETRENCHMENT
STRATEGY
TURNAROUND

The Retrenchment Strategy is adopted when an

organization aims at reducing its one or more business
operations with the view to cut expenses and reach to a
more stable financial position.

DIVESTMENT

LIQUIDATION
 STRATEGIC ENTRY

EXPORTING

LICENCING

FRANCHISING

JOINT VENTURE
 CONCLUSION

Executives must select their firm’s source of competitive advantage by choosing to compete based on low-cost
versus more expensive features that differentiate their firm from competitors. In addition, targeting either a
narrow or broad market helps firms further understand their customer base. Based on these choices, firms will
follow cost leadership, differentiation, focused cost leadership, or focused differentiation strategies. Another
potentially viable business strategy, best cost, exists when firms offer relatively low prices while still
managing to differentiate their goods or services on some important value-added aspects.