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Strategic Marketing, 3 Edition
Strategic Marketing, 3 Edition
© Douglas West, John Ford, and Essam Ibrahim, 2015. All rights reserved.
Structure
A. INTRODUCTION
Fundamental questions:
1. Should we expand, cut back, or continue our businesses unchanged?
2. Should we concentrate our activities within our industry boundaries or should
we diversify into other lines of business?
3. If we want to grow and expand nationally or internationally, should we do so
via self-development or through external acquisition, mergers, or strategic
alliances?
West, Ford, & Ibrahim: Strategic Marketing, 3rd edition
Corporate level: resource allocation
among SBUs
• Ovans (2011) compiled about 20 models that
changed the shape of strategy in the world.
• The Boston Consulting Group (BCG) matrix,
which focuses on market share and market
growth.
• General Electric’s (GE’s) business screen,
which places the SBUs in a nice-cell matrix
using the attractiveness of the industry and
the position of the business
High
Industry Attractiveness
Medium
Low
Most attractive: Investment for Growth Least attractive: Harvesting/Divesting Medium attractiveness: Selectivity
• What is an SBU?
• It is a single business or interrelated
businesses that can plan separately from the
rest of the corporation.
• It has a manager responsible for strategic
planning and profit performance.
• The key strategic decision at the SBU level
relates to the choice of a generic competitive
strategy.
COMPETITIVE ADVANTAGE
Uniqueness perceived Low cost
by customer position
Cost
STRATEGIC TARGET
Industry Differentiation
Leadership
-wide