STRATEGY

&
COMPETIVENESS
 WHAT IS STRATEGY?
Generalship. . .
Planning, development and projection of
organizational resources over time,
towards particular objectives, and in the
face of opposition.
. . .Management
 “Military analogy ignores the customer
entirely.”
 “Is customer the booty from the war?”
 “Panders to the machismo image of “go-
getter” managers.”
“A strategy is the pattern or plan that
integrates an organization’s major goals,
policies, and action sequences into a
cohesive whole.

A well-formulated strategy helps to marshal

and allocate an organization’s resources
into a unique and viable posture, based on
its relative internal competencies and
shortcomings, anticipated changes in the
environment, and contingent moves by
intelligent opponents.”
STRATEGY

 Relatively long term

 Senior
 Complex
 Implications for ‘many’ parts of the
organization
 SOME TIPS ON ORGANIZATIONAL STRATEGY

 Strategy is concerned with the overall direction of the

organization. Its business, its goals and general means.
 It is important that the organization is in harmony with
its environment.
 Shareholders can have an important role in
formulating organizational strategy.
 Managers make things happen: some hope things will
happen; some wonder what happened.
 Important to have good internal marketing as well as
external marketing.
LEVELS OF STRATEGY
Enterprise Strategy
What is the mission of our business in the
society?
Corporate Strategy
What business do we want to be in?
Business Unit Strategy
How do we want to compete?
Functional Strategy
Marketing, Finance, Manufacturing, R&D,
Procurement and HR departmental strategies.
POSITIONAL ADVANTAGE
Value Proposition
Unique way of delivering value to customers.

Why should the customer prefer us to

competition?

Competitiveness
The ability to achieve contested objectives over
time.
MARKETING MANAGEMENT
PROCESS
 Analysis/Audit - where are we now?

 Objectives - where do we want to be?

 Strategies - which way is best?

 Tactics - how do we get there?

 Implementation - Getting there

 Control - Ensuring arrival

 EIGHT FEATURES OF
EXCELLENT COMPANIES
(Peterson & Waterman)

1. Bias for action

2. Close to the customer
3. Autonomy and entrepreneurship
4. Productivity through people
5. Hands on, value driven
6. Stick to the knitting
7. Simple form, lean staff
8. Simultaneous loose – tight properties
TYPES OF COMPETITION
What
Whatdesire
desiredo
do What
Whatdo
doI I What
Whattype
typeof
of What
Whatbrand
branddo
do
I Iwant
wantto
to want
wantto
toeat?
eat? candy?
candy? I Iwant?
want?
satisfy?
satisfy?

Desire
Desire Generic Form Brand
Generic Form Brand
Competitors
Competitors Competitors Competitors Competitors
Competitors Competitors Competitors

Socializing Potato
Socializing Potatochips
chips Chocolate
Chocolatebar
bar Hershey
Hershey

Exercising
Exercising Candy Mints Nestle
Candy Mints Nestle

Eating Soft
Eating Softdrink
drink Sugar
Sugardrops
drops Mars
Mars
.. .. .. ..
. . . .
COMPETITIVE COMPETITION
STRATEGIES ANALYSIS
 Leaders  Identifying
 Objective setting
 Challengers  Strategic
grouping
 Followers  Competitors’
SWOT
 Reaction
 Nichers
patterns
 Selection
ALTERNATIVES TO
COMPETITION

 Collaboration

 Collusion

 Co-operation

 Co-existence