Strategic Emphasis and Competitive

Strategy

Overview

Strategic Planning

Strategic planning is a process that helps organizations answer three specific questions that are critical for any company that are critical for any company that operates in a competitive business arena:

Who are we?

Where are we going?

How will we get there? Competitive Strategy

Strategic Emphasis

5 Potential Areas of Strategic Emphasis

Product / services

Competency

CustomerTechnology

Raw material

Product-Based Strategic Emphasis

New Product Development

Product Design

Input, conversion and output process

Product QualityContinual improvement of

process and product quality

Service quality

Product marketing

PR

O D

U C

T B

A S

E

Competency-Based Strategic Emphasis

Low cost relating

to competen

cies

Efficient input,

conversion and output process

(as applicabl

e)

High capacity relating to the

competencies

Strong substitu

te marketi

ng

Flexbility relating to the

application of the

competencies

Customer-Based Strategic Emphasis

Brand Loyalt

y

Customer

relation

Ongoing

customer

research

Ongoing

customer

communicati

on

Customer

needs analys

is

Response to changi

ng customer

needs

Customer

focus

Technology-Based Strategic Emphasis

Proprietary Rights to the technology

Applied Research

Application Marketing

Flexibility in the application of technology

Formation and Operation of Strategic Partnership

Raw Material-Based Strategic Emphasis

Access to & control

sufficient supply of

Raw Materials

Capability of securing

Raw material

Input, conversion, and output processes

Flexibility

Competitive Strategy

Strategic planning process answers three questions:

1. Who are we?

2. Where are we going?

3. How will we get there? Competitive Strategy

Strategic Emphasis

Selecting a Competitive Strategy

1. Low cost/broad scope

2. Differentiation/broad scope

3. Low-cost/narrow scope (niche)

4. Differentiation/narrow scope (niche)

Stuck in the

Middle