Integration

Strategies

Intensive
Strategies

Diversification
Strategies

Defensive
Strategies

Integration Strategies

Forward
Integration

Backward
Integration

Horizontal
Integration

Intensive strategies

Market
Penetration

Market
Development

Product
Development

Diversification Strategies

Concentric
Diversification

Horizontal
Diversification

Conglomerate
Diversification

Defensive Strategies

Joint
Venture

Retrenchment

Divestiture

Liquidation

Combination

Fundamental Competitive forces

:

Michael Porter

Entry of new competitors

Threat of substitutes
Bargaining powers of buyers
Bargaining power of suppliers
Rivalry among existing competitors

Traditional sources of success:

Product and Process technology

Protected and regulated market

Access to financial resources

Economies of scale

Potential
Entrants
Threat of New Entrants

Bargaining power
Of Suppliers

Suppliers

Industry
Competitors

Bargaining Power
Of Buyers

Rivalry Among
Existing Firms

Buyers

Threat of Substitute
Product/ Services

Substitutes
The Five Competitive forces that determine Industry Competition and Profitability*
* Michael Porter

Michael Porters Generic Strategies

Cost
Leadership

Differentiation

Focus Strategies

Porters Typologies of Competitive Strategies

C
O

Lower Cost

Differentiation

E
T

Broad

I
T

Cost Leadership

Differentiation

Focus:
Cost Leadership

Focus:
Differentiation

Target

I
V
E

S
C
O
P
E

Narrow
Target

Cost Leadership Strategies

Cost leadership emphasizes producing standardized products at

very low unit cost for consumers who are price sensitive.

Differentiation Strategies
Differentiation is a strategy aimed at producing products and
services considered unique industry wide and directed at
consumers who are relatively price insensitive.

Focus Strategies
Focus means producing products and services that fulfill the
needs of small groups of consumers.

Mission Statement

Define what the organization is and what the organization

aspires to be.
Be limited enough to exclude some ventures and broad
enough to allow for creative growth.
Distinguish a given organization from all others.
Serve as a framework for evaluating both current a nd
prospective activities.
Be stated in terms sufficiently clear to be widely
understood throughout the organization.

Components of a Mission statement

Customers

Who are the firms customers

Products or services

What are the firms major products or services

Markets

Geographically, where does the firm compete?

Technology

Is the firm technologically current?

Concern for survival,

Is the firm committed to growth and financial

soundness?

growth and profitability

Philosophy

What are the basic beliefs, values, aspirations

and ethical priorities of the firm?

Self concept

What is the firms distinctive competence or

major competitive advantage?

Concern for Public

image

Is the firm responsive to social, community and

environmental concerns?

Concern for employees

Are employees a valuable asset of the firm?

Vision Vs. Mission

Vision statement answers the question What do we want
to become
Amoco will be a global business enterprise, recognized
throughout the world as preeminent by employees, customers,
competitors, investors and public. We will be the standard by
which other businesses measure their performance. Our hallmarks
will be the innovation, initiative and teamwork of our people and
our ability to anticipate and effectively respond to change and to
create opportunity.
Mission statement answers the question What is our
business
Amoco is a worldwide integrated petroleum and chemical
company. We find and develop petroleum resources and provide
quality products and services for our customers. We conduct our
business responsibly to achieve a superior financial return
balanced with our long term growth, benefiting shareholders and
fulfilling our commitment to the community and environment.

Exxon Mobil
Exxon Mobil Corporation is committed to being the world's
premier petroleum and petrochemical company. To that
end, we must continuously achieve superior financial and
operating results while adhering to the highest standards
of business conduct. These unwavering expectations
provide the foundation for our commitments to those with
whom we interact:
Being a business leader requires us to constantly seek
new and better ways of working that help us grow our
company reliably and responsibly. So we can continue to
improve our stakeholders' quality of lifeand fulfill our
promise to our customers.

Ford Motor Company

Mission
Ford Motor Company is a worldwide leader in automotive and
automotive-related products and services as well as in newer

industries such as aerospace, communications and financial

services. Our mission is to improve continually our products and
services to meet our customers needs, allowing us to prosper as
a

business

and

to

provide

reasonable

stockholders, the owners of our business.

return

for

our

Procter & Gamble

We will provide branded products and services of

superior quality and value that improve the lives of the
world's consumers. As a result, consumers will reward
us with leadership sales, profit, and value creation,
allowing

our

people,

our

shareholders,

and

the

communities in which we live and work to prosper.

Infosys

Infosys' Vision:
"To be a globally respected corporation that provides best-ofbreed business solutions, leveraging technology, delivered by
best-in-class people."

Infosys' Mission Statement :

"To achieve our objectives in an environment of fairness,
honesty, and courtesy towards our clients, employees, vendors
and society at large."

Citigroup

Goal for Citigroup is to be the most respected global

financial services

company.

Like any

other public

company, were obligated to deliver profits and growth

to our shareholders. Of equal importance is to deliver

those

profits

and

generate

growth

responsibly.