M.S.

Oowise MBA (ECU Aus),

MSLIM, MIMSL, FIMS (U/K), CeMA, CPM (ASIA/PACIFIC)
1. Corporate strategies will be identified
through
- Ansoff Matrix
- Porters Generic Strategy Model
- Profit impact on Market Strategy (PIMS)

2. Product offering will be through (Portfolio

models)
- BCG Matrix
- Market Attractiveness – Business Position
Model
- Shell Directional Policy Matrix
 “Planning is deciding in the present what to
do in the future”. – Philip Kotler
 It involves both the determination of a desire

and the steps necessary to bring it about.

 Its about adapting its strenght and

weaknesses in order to take advantage of any

future opportunities.
• Would you tell me
please, which way I
ought to go from here?"

• "That depends a good

deal on where you want
to get to," said the Cat.

• "I don't much care

where-" said Alice

• "Then it doesn't much

matter which way you
go," said the Cat.
 What is strategy?

 Describe the strategy of your organisation

or of a competitor?

1-5
 Market
Positioning

Competitive Success
Advantage (Sustainability)

Resources
Base

1-6
 ◦ Benchmarking?
◦ Continuous improvement?
◦ TQM?
◦ Lean manufacture?
 Increases operational efficiencies
 Necessary, but not sufficient

1-7
 How does one achieve sustainable
competitive advantage?

◦ By preserving what is ‘unique’ (or distinctive)

about the company

 i.e performing different activities from rivals or

 Performing similar activities in different ways

 Firms must deliver ‘greater value’ or create

comparable value at ‘lower cost’

1-8
 Strategy ;
◦ Is creating a unique and valuable position,
involving a different set of activities- Scope &
Diversity
◦ Requires you to make ‘trade-offs’ in competing
(to chose what not to do)
◦ Involves creating a ‘fit’ among a company’s
activities

1-9
 Strategy ;
◦ A firm has/creates superior resources &
capabilities
◦ Industries are heterogeneous
◦ Sustainable competitive advantage achieved
through unique resources & capabilities – Core
competencies

1-10
 Establishing a
A specific
direction
manoeuvre
Plan intended to outwit a
competitor

Perspective Ploy
Shared norms &
values; Strategy
Personality/Character
Of the firm

Consistent
Position Pattern behaviour over
In the context of its time
competitive
environment
1-11
Strategy is the direction and scope of an
organisation over the long term, which
achieves advantage in a changing
environment through its configuration of
resources and competences with the aim
of fulfilling stakeholder expectations.

1-12
 Corporate or visionary planning – provides a
mission and structure for evaluating and
allocating resources.
 Business planning – long range for

positioning the company and its products to

best serve target markets.
 Functional planning – includes marketing

planning which is generally annual planning,

involves in specific goals and plans over one
year.
Corporate Planning Business Planning Functional level
Planning
Env. And business Marketing objectives Identify alternative
analysis and strategy plans and mixes
formulation
Devp. Mission Estimate expected Implementation
statement results
Marketing audit Review

Corporate objectives
and strategy
formulation
- Gillian & Fifield,
1997
External
- Nature of the competition, products on offer
- PEST pressures
- Needs and requirements of the buyers

- Changes in the environment

Internal
- Corporate objectives
- Size and power of the company

- Resource availability
- Stakeholder expectation
- Position of the firm in the market place

- Nature of the firms business (leader/follower)

 Competitive Advantage
Uniqueness Perceived by
Customers Low Cost Position

Industry Differentiating Overall Cost Leadership

wide Product/Service
Efficient scale facilities
Design/Brand image
Cost reductions from
Technology experience
Competitive
Unique Features Cost minimisation in;
Scope
Customer service R & D, Advt, Sales force
etc
Narrow Channel
High relative market share
Segment
Focus Differentiated Focused Cost Leader

6-17
 Cost Leadership –
- Will control the market as low cost
producer.
- Products is undifferentiated.
 Differentiation –
- Offers unique products, highly regarded
by the customers as valued.
- Uniqueness attracts loyalty, that will

protect from competition.

 Focus/Niche –
- Uses both above or one but serves a
small segment of un-served market.
 Seeks to provide products that offer
benefits that differ from those offered by
competitors
 Dependent upon
◦ Identifying and understanding strategic customer
needs
◦ Identifying key competitors’ strategies

6-19
 Seeks to provide high perceived product
benefits, justifying price premiums
 Key issues
◦ Choice between focus strategy and broad
differentiation
◦ Tensions between focus strategy and other
strategies
◦ Market changes

6-20
Price-based
Differentiation
strategies

Sustainable
competitive
advantage

Lock-in

6-21
 After positioning all products (SBU’s) on the BCG
matrix, the company must decide if it is
balanced.
 Then it must allocate objectives and strategies.

1. Build – (Question Marks) to increase share, even

if it means giving up short term profits.
2. Hold – (Strong Cash Cows) to preserve the share
3. Harvest – (Weak Cash Cows, QM’s or Dogs) to
increase short term cash flow, regardless the
long term implications.
4. Divest – (Dogs & QM’s) to sell off, liquidate and
SBU or product