Introduction 2 Business Session

By
 Strategy

Strategy is the direction and scope of
an organisation over the long term :
ideally, which matches its resources to
its changing environment, and in
particular its markets, customers or
clients so as to meet stakeholder
The clear cut choices about how to
compete
The direction or path chosen to pursue
the goal

Strategy vs Tactic
Strategy is the path or choice made to Tactic is the rate or speed at which you
pursue the goal pursue the strategy
 The Two School of Thoughts on Strategy
Michael E. Porter Henry Mintzberg

Deliberate strategy Emergent strategy

Involves more of planning and
implementing those plans
When the past was quite helpful in
predicting the future
Strategy emerges over time as
intentions collide with and
accommodate a changing reality
Emergent strategy is a set of
actions, or behavior, consistent
over time, a realized pattern
[that] was not expressly intended
in the original planning of strategy

Reference: Porter or Mintzberg: Whose View of Strategy Is the Most Relevant Today?
-By Karl Moore
 Porters Five Forces Model
Economies of Scale
Potential Entrants Switching Cost
Access to distribution
Supplier Concentration channels
Importance of Volume Threat of New
Cost Disadvantages
Threat of forward Entrants
Government Policy
integration
Industry Competitors

Suppliers Buyers
Bargaining Power Bargaining Power
of Suppliers Rivalry among existing of Buyers
firms
Availability and performance Buyer to Supplier Ratio
of substitutes Buyers Purchase Volume
Switching Costs incurred by Threat of Substitute Threat of backward
the buyers integration
Propensity of buyer to
substitute Substitutes
Reference: Competitive Strategy
-By Michael E. Porter
BCG matrix or Growth share
matrix

10%

1.0X
STRATEGIC GROUP
MAPPING
Who is Our Competitor?
Suppliers, Complementors
Inner

Primary Maruti, Hyundai, BMW, Mercedes

Secondary Indian Railways, Buses, Airlines

Tertiary Cisco Video Conferencing

Strategic Group
A cluster of firms in an industry with similar competitive approaches
and market positions

Firms in same strategic group have at least two or more common

characteristics

Hunt coined the term strategic group in 1972 when he noticed sub-groups of businesses with similar characteristics in
the same market. Michael Porter then expanded the concept in the 1980s.
 Indian Retail Apparel Sector

Group D
Group C

Group A Group B

Importance of Perceptual Strategic Group Mapping Competition is in Mind of Customer Primary Research
ASSIGNMENT
Group Assignment
Perform Strategic Analysis
(Environmental, Industrial,
Competitor, and Firm level)
of the given firm.
Draw Strategic Roadmap for
the firm (1-3 years)
Deadline: July 7, 2016 9:00am
Compulsory
Max. 6 slides
Individual Assignment
Select one of the
Models/Frameworks in the
domain of strategy and write
about
How powerful the tool is
When to use the tool
How to use the tool (pre-
requisites)
Limitations of the tool
Example
Deadline: July 7, 2016 9:00am
Optional
Max. 2 pages
STAY SOLVED !!