guidance.We gratefully acknowledge the Inspiration.We are grateful to the IILM institution. The project report entitled. help and the valuable suggestions received from the faculty of this course. especially to abhijit mukhopadt.Acknowledgement We express our deep sense of gratitude to all those who have helped us in making this project.We would also like to thank our classmates and friends who motivated and supported us throughout the report making process. who have not only guided us but also provided necessary information regarding the completion of the Report. ³Sharks in the Water ± Case Analysis´ is a result of extensive efforts made byof Section C . We also extend heartfelt thanks to our family and well . encouragement.

Threats new entrants. There would be no need for choice and thus no need for strategy . According to the unique activity strategy is a creation of unique and valuable position.not just few ± and integrating among them. The problem with competitive effectiveness is that best practices are easily emulated. operational effectiveness means performing the business activities better than that of the rivals.WHAT IS STRATEGY? Michael porter argues that the competitive strategies all about being different. management. given the . As all the competitors in an industry adopt them. 3. 5. The essence of strategic positioning is to choosing what not to do. uniqueness. fits.Now strategy is creating fit among a company¶s activities. trade off. Companies can reap enormous advantages as Japanese firms demonstrated in 1970¶s and 1980¶s with such practices as total quality management and continuous improvement. Also. Barganing power of buyers. 2. there would be no strategy. Barganing powers of supply. the productivity frontierthe maximum value that a company can deliver at a given cost. Porter as a combination of the ends( goals) for which the firm is striving and the means( policies) by which it is seeking to get there. Without trade off. Rivarly among exsisting competitors. Threats of substitute products or services. strategy based on operational efficiency. If there were only one ideal position. In short porter argues that strategy is all about competitive position about differentiating yourself in the eyes of customer about adding values through a mix of activities different from those use by competitors. He adds different set of activities to deliver unique mix of value. involving different sets of activities. The success of a strategy depends on doing many things well. 4. There are FIVE forces that shape strategy 1.

The more benchmarking the companies do. skills and management techniques. Trade off arise from restrictions on internal co-ordination and control because companies that try to be all things to all customers usually end up being nothing. Key principles The key three principles underline strategic positioning are Strategy is the creation of a unique and valuable position. involving a different set of activities: strategic positioning emerges from three distinct sources: 1. It is the creation of a unique and valuable position involving a different set of activities. Serving broad needs of few customers 3. A trade off means that more of one thing necessitates less of another and it creates the need for choice thus protecting against repositioners.best available technology. but a strategic position is not sustainable until and unless there are trade offs with other positions. Serving few needs of many customers 2.that is the more indistinguishable companies are from one another. It means performing different activities from rivals or performing similar activities in different ways. Serving broad needs of many customers . the more competitive convergence you have. Thus OE means doing which porter is trying to focus on is that operational effectiveness is important to achieve superior profitability but is not sufficient because it can be imitated by rivals quickly in a short span of time.shift outward. lowering costs and improving values at the same time. STRATEGIC POSITIONING: DIFFENENT FROM OE Strategic positioning attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company.

Neutrogena soap is positioned more as a medicinal product that as a cleansing agent. The CORE COMPETENCE C. prahalad and gary hamel article ³the core competence of the corporation is an excellent attempt to present the meaning and importance of core competencies. integrated system that reinforces fit among the firm¶s diverse production and technology skills which becomes a systematic advantage that can¶t be imitated by the competitors. The example of GTE and NEC has helped in explaining the benefits of understanding core competencies. competitors can¶t easily imitate. Strategy involves creating ³fit´ among a company¶s activities: fit has with the ways a company¶s activities interact and reinforce one another. Some companies activities are in compatible. .K. Many companies today. For example.Strategy requires you to make trade off in competing to choose what not to do: if deciding what the wants to do is important so is to decide upon what the company chooses not to do at all. after a decade of re ± structuring and cost cutting are focusing on profitable growth but growth imperative is hazardous to strategy because growth such changes that lead to imitation and ultimately kill core completive advantage. Diversified giant NEC competed in seemingly disparate business semi. Fit derives both competitive advantage and sustainability: when activities mutually reinforce each other. The authors clarify that when a company focuses on creating core competencies it creates a unique .conductors. thus gain on one area can be achieved only at the expenses of another area.

This became possible because NEC considered itself not a collection of strategic business units. CLARIFYING THE CORE COMPETENCIES Define your company and its market: this is important so as to know what are the core products of the company. the trunk and major limbs as core products. smaller branches as business units .telecommunications. exploit emerging ones. Customers are also important to the organization and identification of core competencies is also important to know if the customer satisfaction also revolves around the core competence. For this the company can take following steps: . and consumer electronics and dominated them all. Nourishing and stabilization everything is the root system : core competencies. NEC used it core competencies to achieve what most companies only attempt invent new market . Building of core competencies: after the company has identified its core competencies. They have to choose a group of customers as the center of the product or service Identification of core competencies: the company has to find out how long the company could dominate the business if they didn¶t control their competencies. They want their readers to think of a diversified company as a tree. but a portfolio of core competencies ± the companyµs collective knowledge about how to co-ordinate diverse production skills and technologies. leaves and fruits as end products. it has to build its core competencies and improve on them. what the company is trying to provide to their customers can¶t serve all the customers. computing. Authors used the example of tree to explain the importance of core competencies. delight customers with products they hadn¶t even imagined ± but definitely needed. This is also important to know the future opportunities would they lose without the core competence.

customer loyalty and access to distribution channels for all their business Forge strategic alliances: NEC¶s collaboration with partners like Honeywell gave it access to the mainframe and semi conductors technologies it needed to build core competencies Cultivating a a core competence mind set: To execute the aforesaid steps. Through this organization builds image. it is important to cultivate a mind set which helps the managers to willingly share resources and think long term. For example : Citicorp trumped rivals by adopting an OS that leveraged its competencies.Invest in invest technologies: it is important to invest in new technologies for every business today so as to keep pace with the ever changing business environment. And made it is participation in the world market 24 hours a day. 3M and Honda won races for global dominance by creating wide varieties of products from their core competencies. Optimal allocation of resource : it is important for the organization to optimally allocate the resources to outpace rivals in new business development. They have to identify projects and people and people who embody the firm¶s core competencies. Sometimes even a slight change in the technology might lead to multiple level operational efficiencies. managers have to stop thinking of business units as sacrosanct. To encourage this mind set . .

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