Strategic Management

Abhishek Pandey 140002

Kumar Shivam 140017

Priyanka Srivastava 140028

Supriya Jaiswal 140042

Anish Kumar 140052

Pooja Kumari 140067 Under the Guidance of:

Vishal Kumar 140084 Prof. Sayan Banerjee

Contents
• Agency Transaction Theory
• Structure conduct performance
• Porter’s five forces
• Product life cycle
• Porter’s value chain
• 3A
.
• Corporate strategy
• 3D
Agency Transaction Cost

Principle Agent
 Agency Transaction Cost

Symmetric Asymmetric
Information Information
 STRUCTURE CONDUCT PARADIGM

Structure Conduct

Categorization

On the basis of market On the basis of product

PORTER’S FIVE FORCES
 PRODUCT LIFE CYCLE
EVOLUTION OF THE PRODUCT IN
THREE STAGES:
 FLUID STAGE:-
• Focus on product innovation.
• In this stage, the price of the product increases.
• Frequently, new product innovation occurs.
• Sunrise industry increases.
• Small manufacturer.
 TRANSITIONAL STAGE:-
• Demand for the product increases.
• Product variation.
 SPECIFIC STAGE:-
• Focus on process innovation.
• Cost is reduced.
• Increase in scale of production.
• Large manufacturer.
• Technological complexity is high.
PORTER’S VALUE CHAIN

8
 AAA Framework
• The AAA Framework offers three approaches to global value creation-
Adaptation, Aggregation, and Arbitrage.
AAA
ADAPTATION AGGREGATION
 Opposite of
economic of scale  Attaining Economic of scale
 Diversification of
 Lesser diversification
product
 Do not go for  Producing more of the same of
similarity
 Mass manufacturing the product
 Focus on R&D, Large
customer market per capital
value capture is very less.
ARBITRAGE
 Exploitation of
differences between
National and regional
markets, often by
locating separate
parts of the supply
chain in different
places.
 Ex- Wage
differentiation
 Outsourcing
 CORPORATE STRATEGY

SOC WTP
Dual Competitive Advantage

SOC WTP
Dual Competitive Disadvantage
 3D’s
The way in which company are differentiated when they
trying to market their product in different countries

Deployer
Developer Deepener

• Constant value capture

• Understand the difference among
• Based on the economic of scale
the customer .
• No product differentiation . • High product differentiation .
• It take place when changes occurs
• Deployer find similarity among • Intense competition
in typical market and atypical
market . • Dynamic link
market.
• It basically focus on the • Value capture
• Increase in value capture after
aggregation economic of • Have to sell more to get profit .
intervention .
scale ,R&D ,Product variety
• Value capture is contingents
Thank you!