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STRATEGIES
Reporters:
Kathlyn Joy Salazar
Almiralane Lising
Art Daniel Malong
CRAFTING STRATEGY
Crafting a strategy is the task that serves as
the fulcrum and determining factor that
separates the planning phase and the
evaluation phase.
- From the six major groups forming part of Porter’s business competition
model
Crafting strategy involves determining
whether or not to pursue any of the
following:
a. Concentrate on a single business or several
businesses (diversification)
b. Carter to broad range of customers or focus on a
particular niche
c. Develop a wide or narrow product line
d. Pursue a competitive advantage based on:
i. Low cost
ii. Product superiority
iii. Unique organizational capabilities
iv. Differentiated products
v. Service advantage
vi. Terms and conditions of payment
In a border context, Thompson and Strickland (1999)
identified several factors to consider in crafting
strategies.
What makes strategy difficult and challenging are the following basic
characteristics of strategy:
Efforts to
Actions to
Pursue new
strengthen
opportunities
resources &
or defend
capabilities
against
threats
How to
Actions functional
to activities
diversify are
Patterns of managed
Actions to
Responses to form
changing Actions to strategic
external merge or alliances and
circumstances acquire rival collaborative
companies partnerships
Timing in Crafting Strategies
Customer-needs and competitive conditions
a.)
change
b.)
New opportunities appear; technology advances;
any number of other outside developments occur
Refers to a Refers to a
strategy that was strategy that is
purposively developed as a
developed or reaction to or a
crafted regardless result of a certain
of the situation of factors that the
the business strategy needs to
organization respond to.
Company
experiences,
Know-how,
Resource,
Strengths and Actual
Weaknesses, Company
and Strategy
Competitive
Capabilities
Challenge fundamental
conventions by reconceiving a
product or service (e.g.,
creating a single-use of
disposable camera)
Rule
Redefining the marketplace
Breaking (e.g., detouring retailers by
selling online at the company’s
Strategy website)