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STRATEGY

&
COMPETIVENESS
WHAT IS STRATEGY?
Generalship. . .
Planning, development and projection of
organizational resources over time,
towards particular objectives, and in the
face of opposition.
. . .Management
Military analogy ignores the customer
entirely.
Is customer the booty from the war?
Panders to the machismo image of go-getter
managers.
A strategy is the pattern or plan that
integrates an organizations major goals,
policies, and action sequences into a
cohesive whole.

A well-formulated strategy helps to marshal


and allocate an organizations resources
into a unique and viable posture, based on
its relative internal competencies and
shortcomings, anticipated changes in the
environment, and contingent moves by
intelligent opponents.
STRATEGY

Relatively long term


Senior
Complex
Implications for many parts of the
organization
SOME TIPS ON ORGANIZATIONAL
STRATEGY

Strategy is concerned with the overall direction of the


organization. Its business, its goals and general means.
It is important that the organization is in harmony with
its environment.
Shareholders can have an important role in formulating
organizational strategy.
Managers make things happen: some hope things will
happen; some wonder what happened.
Important to have good internal marketing as well as
external marketing.
LEVELS OF STRATEGY
Enterprise Strategy
What is the mission of our business in the
society?
Corporate Strategy
What business do we want to be in?
Business Unit Strategy
How do we want to compete?
Functional Strategy
Marketing, Finance, Manufacturing, R&D,
Procurement and HR departmental strategies.
POSITIONAL
ADVANTAGE
Value Proposition
Unique way of delivering value to customers.

Why should the customer prefer us to


competition?

Competitiveness
The ability to achieve contested objectives over
time.
MARKETING MANAGEMENT
PROCESS
Analysis/Audit - where are we now?

Objectives - where do we want to be?

Strategies - which way is best?

Tactics - how do we get there?

Implementation - Getting there

Control - Ensuring arrival


EIGHT FEATURES OF
EXCELLENT COMPANIES
(Peterson & Waterman)

1. Bias for action


2. Close to the customer
3. Autonomy and entrepreneurship
4. Productivity through people
5. Hands on, value driven
6. Stick to the knitting
7. Simple form, lean staff
8. Simultaneous loose tight properties
TYPES OF COMPETITION
What
Whatdesire
desire What
Whatdo
doI I What
Whattype
typeof
of What
Whatbrand
brand
do
doI Iwant
wantto
to want
wantto
toeat?
eat? candy?
candy? do
doI Iwant?
want?
satisfy?
satisfy?

Desire
Desire Generic Form Brand
Generic Form Brand
Competitors
Competitors Competitors Competitors Competitors
Competitors Competitors Competitors

Socializing Potato
Socializing Potatochips
chips Chocolate
Chocolatebar
bar Hershey
Hershey

Exercising
Exercising Candy Mints Nestle
Candy Mints Nestle

Eating Soft
Eating Softdrink
drink Sugar
Sugardrops
drops Mars
Mars
.. .. .. ..
. . . .
COMPETITIVE COMPETITION
STRATEGIES ANALYSIS

Leaders Identifying
Objective setting

Strategic
Challengers
grouping
Competitors
Followers SWOT
Reaction
Nichers patterns
Selection
ALTERNATIVES TO
COMPETITION

Collaboration

Collusion

Co-operation

Co-existence

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