Introduction to Strategic Management

Week 4

Crafting Successful Strategies

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 Introduction to Strategic Management

Crafting Successful Strategies Week 4

Successful Strategies looks at industry structure as well as positioning

Successful Strategists select unique positions
Each generic strategy positions the firm differently in its market & competitive environment.
Deciding which generic strategy is an imp. strategic commitment it tends to drive the rest of the
strategic actions.
Each entails differences in terms of product line, production emphasis, marketing emphasis, and means
for sustaining the strategy.
Caution against stuck in the middle strategies that represent compromises.

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 Introduction to Strategic Management
Week 4
Strategy Recommendations : Profitable company

Commitment : Stick to the current generic strategy

Consistency: Functional strategies should be consistent with

generic strategies
Continuous monitoring of:
Technology trends
Trends in consumer tastes
Changes in their competitors cost position,
image & reputation

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 Introduction to Strategic Management
Week 4

Strategy Recommendations : Unprofitable company

If the company has a reasonably large share of the overall market, then depending on its skills
and resources, it should move to become either an overall cost leader or differentiator.

If the company has a small share of the overall market, then depending on its resource position and
the targeted segment, it should choose to achieve either a low cost or a differentiated position in
that segment.

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