Académique Documents
Professionnel Documents
Culture Documents
Or
SWOT Criticism
Generates lengthy lists
No weighted priorities
Ambiguous wording
Same factor can be in two categories
No supporting data
Single level analysis
No link to strategy implementation
IFAS Maytag as Example
EFAS Maytag as Example
SFAS Matrix
Situational Analysis
Niche
Need in the marketplace that is currently
unsatisfied
Corporate Goal
Find propitious niche market segment big
enough for only one company
Business Strategy
Focuses on improving competitive position of
companys products or services within the
specific industry or market segment
Porters Competitive Strategies
Competitive Strategy
Lower Cost strategy
Greater efficiencies than competitors
Differentiation strategy
Unique/superior value, quality, features, service
Competitive Scope -
Direct competition
Focus on niche
Porters Competitive Strategies
Porters Competitive Strategies
Cost Leadership
Low-cost competitive strategy
Broad mass market
Efficient-scale facilities
Cost reductions
Cost minimization
Potential Outcome
Barriers to entry
Higher ROI
Porters Competitive Strategies
Differentiation
Broad mass market
Unique product/service
Premiums charged
Less price sensitivity
Potential Outcome
Increase Market Share
Higher Profit
Brand as barrier to entry
Porters Competitive Strategies
Cost-Focus
Differentiation Focus
Specific group or geographic market focus
Differentiation in target market
Special needs of narrow target market
Porters Competitive Strategies
No competitive advantage
Below-average performance
Risks of Generic Strategies
Industry Structure
Fragmented Industry
Focus
Consolidated Industry
Cost/Differentiation through service
Move toward commoditization
Competitive Strategy
Tactics
A specific operating plan that details how a
strategy is to be implemented in terms of when
and where it is to be put into action. (Narrower
in scope and shorter time horizons than
strategies)
Competitive Tactics
Timing Tactics
First mover advantages
Reputation for industry leadership
Cost leadership as product matures
Temporary high profits
10 years for CPG
12 years for Industrial
Late movers advantages
Imitate technology advances
Lower R&D costs
Lower risk
Market segmentation opportunities
Competitive Tactics
Collusion
active cooperation of firms within an industry to
reduce output and raise prices to get around the
economic laws of supply and demand
Implicit or explicit
Generally illegal
Cooperative Strategies
Product Design
Procure raw material
Make the Production
Product
Pricing
Sell the Selling
Product
Advertising & Promotion
Distribution
Services
Provide the Communicate
Choose the value the value
value
Customer Segmentation
Product development
Provide the
value Pricing
Distribution