Strategic

Management
Mariyam Shahudha
Introduction
 The Maldives National University (MNU) is the oldest and most outstanding
academic institution in the Maldives
 The main campus is located in Male’
 They have four more campuses across the nation;
 Kulhudhufushi Campus
 Gan Campus
 Hithadhoo Campus
 Thinadhoo Campus
Concept of Strategy
 Strategic management seeks to coordinate and integrate the activities of the various
functional areas of a business in order to achieve long-term organizational objectives
(Amason, 2011).
 Strategic management involves analysis of the firm’s external and internal
environments towards making strategic decisions and drawing out comprehensive
action-plan for achieving long-term organizational goals.
 The strategic management framework is based on the firm’s vision and mission.
 Vision and mission also help in the formulation of long-term organizational goals.
Cost Leadership Strategy
 This is Porter's generic strategies known as cost leadership. It focuses on gaining
competitive advantage by having the lowest cost in the industry (Porter, 1980).
 For an effective cost leadership strategy, a business must have a large market share
(Porter, 1980).
 Lower prices lead to higher demand and, therefore, to a larger market share.
 As a low-cost leader, an organization can present barriers against new market
entrants who would need large amounts of capital to enter the market.
Market Development Strategy
 The market development strategy consists of marketing present products, often with
only cosmetic modifications, to customers in related market areas by adding
channels of distribution or by changing the content of advertising or promotion.
 Firms that open branch offices in new cities, states or countries are practicing market
development.
Horizontal and Vertical Integration Strategy
 Horizontal integration is used when a firm’s long-term strategy is based on growth
through the acquisition of one or more similar firms operating at the same stage of
the production-marketing chain.
 Vertical integration involves the firm expanding the firm’s range of activities
backward into sources of supply or forward toward end users.
 The main reason for choosing a vertical integration strategy is the desire to increase
the dependability of the supply or quality of the raw materials used as production
inputs.
Summary and Conclusion
 From the findings on the competitive strategies employed by MNU to remain
competitive in the market, the study revealed the competitive strategies are;
 cost leadership strategy
 market development strategy
 vertical and horizontal integration
Summary and Conclusion
 They also use product development such as;
 introduction of new courses
 concentrated growth such as concentrating on one key area of expertise
 diversification either in related or unrelated areas
 market development such as opening new campuses in new cities and islands
 strategic partnership with international Universities.
Thank You