Strategic Management

Presentation
PRESENTERS

1. FALON NYONI R192101Y

2. KUDAKWASHE NDOKANGA R192098Z
3. LEONA KWESHA R192095C
4. DIANA CHIFAMBA R192049S
5. PROSPER SITHOLE R186236R
QUESTIONS
10. With the aid of examples, explain the characteristics of the following market situations and
the strategic options that can be adopted in these market situations:
A. Fragmented Markets

17. Discuss strategies that can be put in place by an organisation of your choice so as to adjust to
the growing and changing needs of the environment.

27. Distinguish between offensive strategies and defensive options and highlight situations under
which these strategic moves can be taken.
Question 10b.
 Fragmented markets are markets where no single company or organization has
adequate influence to move the industry in a specific direction.

 Characteristics:
• Characterized by many small to medium businesses eg the take away industry, grocery
• No one business has enough influence to move the industry
• Low entry barriers
• High level of unlicensed product e.g. food being sold in the streets(uz gate),
clothes(mabhero)
• Low level of production innovation
• No real economies of scale
 Strategic options that can be adopted in this market
• Branding e.g. KFC, RocoMamas, e.t.c. in the take away industry
• Niche strategy e.g. a hotel may focus on only tourists i.e. rather than mass
marketing
• Focusing on limited geographical area e.g. super markets, convenience
stores , shoe repairs
• Low cost strategy e.g. bakers inn
• Operating standardized outlets in many cities e.g. Enbee
Question 17
A company like Coca Cola implements strategies to adjust to the changing needs of the
environment. Such strategies help the organization to adapt quickly once changes start
occurring. Such strategies can be to:

 Continuously innovate
By doing so, an organization is able to stay prepared for future changes which can lead to
increase in revenue if changes support the new products. This also encourages adaptability to
change as innovation would come easily to the organization.
On top of the first coke drink variety, Coca Cola introduced diet coke, started Coke Studio and
made mobile vending machines.

 Possess transferable skills

Such skills make adaptation to change easier since you will be able to pass them to the team
quickly which may lead to handling of the change in a more efficient way.
• Provide the team with context
By keeping the team updated as to the aims of the organization, the team is able to
implement changes more efficiently as they will be making informed decisions.

• Over-communicate
By increasing communication with all members of the supply chain, the organization is
able to stay up-to-date with most changes occurring in its environment which can help it
to adjust.
Coca Cola employs extensive advertisement to increase awareness of its products to its
customers and other stakeholders.

• Take a wider perspective

The organization can invest into knowing more about its stakeholders and the changes
which are occurring in their environments. Such investigations can lead to better
adjustment and preparation for changes which can spread to its own environment.
• Encourage upskilling
This helps the workforce to acquire more skills which in turn can increase adaptability to
changes which occur in the business’ environment.
Coca Cola joined with Upskill to improve the skills of its employees.

• Make plans in advance

This helps to be better prepared for changes than can occur in the future. Such a strategy
helps to be solution-focused which can lead to better adjustment to future changes.

• Adopt an agile mindset

This is a thought process that involves understanding, collaborating, learning and staying
flexible to achieve high-performing results. Such a mindset can be adopted at a strategic
level by preparing multiple plans in advance, at a tactical level by being situationally
oriented and at an operational level by training for multi-skills.
Question 27
 Offensive strategy
• An offensive strategy is when a business takes certain steps against the market leader
to get competitive in order to secure its market position. It is a type of corporate
strategy that consists of actively trying to pursue the market. Companies that are
managed as offensive competitive generally invest heavily in technology and Research
and Development (R&D) in an effort to stay ahead of the competition. For example, a
company using an offensive marketing strategy may seek to target an established
industry leader’s shaky product safety record by emphasizing the safety of its own
products.
 Objectives of offensive strategies:
• To maximize the sales
• To destabilize the current market leader
• To acquire market share
 Types of Offensive strategy
• Frontal attack – attacking a competitor with similar products, prices, promotion
and distribution.
• Flank attack – attacking the competitor at the weak point or blind spot.
• Encirclement attack – combination of frontal and flank attack. Involves
surrounding with various brands to make competitor difficult to defend.
• Bypass attack – also called leapfrog strategy and it involves overtaking
competitors by introducing new technology, for instance PepsiCo.
• Guerilla attack – attacks take several times to destabilize the competitor.
 Defensive strategy
• Whereas, defensive strategy can be defined as a marketing tool that helps companies
to retain valuable customers that can be taken away by competitors. In other words,
offensive strategy is focused on achieving competitive advantage whereas defensive
strategy is focused on responding to competitors in order to take him off. An
organization protects its market share in order to satisfy customers and stabilize
profits. Defending your business strategy is about knowing the market an organization
is best equipped to operate in and when to widen your appeal to enter into new
markets. The established company simply uses its defensive marketing to reinforce
customer confidence in its products and swat the newcomer away.
• Objectives of Defensive strategies:
• To maintain the existing market share and to maximize profitability
• To safeguard the existing levels of competitive advantage
• To keep up top position in local and existing markets.
 Types of Defensive Strategies
• Position defense – trying to hold current position in the market.
• Mobile defense – making constant changes in the business.
• Flanking defense – defending the market share by entering new markets and diversification.
• Counter offensive defense – is a retaliatory defense whereby when a competitor attacks an
organization, it strikes back with its own attack.

 Differences
• Companies pursuing offensive strategies directly target competitors from which they want
to capture market share. In contrast to offensive strategies, which are aimed to attack your
market competitive advantage to keep competitors at bay. Defensive strategies are used to
discourage or turn back an offensive strategy on the part of the competitor.
• Objectives of offensive are to gain more market share, maximize sales and to destabilize
competitors so as to gain competitive advantage. Whereas the objectives of defensive
strategies are to maintain the existing markets, safeguard the existing levels of competitive
advantage, keep up top position in local and existing markets and maximize profitability.
 Situations for Offensive strategies
• When a firm wants to attack market competition, in a competitive industry.
• When the player wants to dominate the market ie to increase market share.

 Situations for Defensive strategies

• When a player wants to defends its business from potential rivals, by entering new
markets and diversification.
• Reinforce customer confidence in its products and swat the newcomer away.