6-1
THOMAS L. WHEELEN J. DAVID HUNGER
CHAPTER 6Strategy Formulation: Situation Analysis & Business Strategy
6-2
Situational Analysis
Strategy formulation --
–Strategic planning or long-range planning
•Develops mission, objectives, strategies, policies
6-3
Situational Analysis
--process of finding a strategic fit between external opportunities and internal strengths while working around external threats and internal weaknesses
6-4
IFAS – Maytag as Example
6-5
EFAS – Maytag as Example
6-6
SFAS Matrix
6-7
Situational Analysis
Niche --
–Need in the marketplace that is currently unsatisfied
6-8
Situational Analysis
Corporate Goal --
–Find propitious niche
–Strategic window
6-9
Situational Analysis
SWOT --
–Internal
•Strengths/Weaknesses
–External
•Opportunities/Threats
6-10
TOWS Matrix
6-11
Business Strategy
Focuses on improving competitive position of company’s products or services within the specific industry or market segment
6-12
Porter’s Competitive Strategies
Generic Competitive Strategies --
–Lower Cost strategy
•Greater efficiencies than competitors
–Differentiation strategy
•Unique/superior value, quality, features, service
6-13
Porter’s Competitive Strategies
Competitive Advantage --
–Determined by Competitive Scope
•Breadth of the target market
6-14
Porter’s Competitive Strategies
6-15
Porter’s Competitive Strategies
Cost Leadership --
–Low-cost competitive strategy
–Broad mass market
–Efficient-scale facilities
–Cost reductions
–Cost minimization
6-16
Porter’s Competitive Strategies
Differentiation –
–Broad mass market
–Unique product/service
–Premiums charged
–Less price sensitivity
6-17
Porter’s Competitive Strategies
Cost Focus –
–Low-cost competitive strategy
–Focus on market segment
–Niche focused
–Cost advantage in market segment
6-18
Porter’s Competitive Strategies
Differentiation Focus –
–Specific group or geographic market focus
–Differentiation in target market
–Special needs of narrow target market
6-19
Porter’s Competitive Strategies
Stuck in the middle –
–No competitive advantage
–Below-average performance
6-20
Competitive Strategies
Best Cost Provider –A company has an ability to incorporate attractive or upscale attributes at a lower cost than rivals.
6-21
Competitive Tactics
Timing Tactics --
–First mover
–Late movers
6-22
Competitive Tactics
Market Location Tactics --
–Frontal Assault
–Flanking Maneuver
–Bypass Attack
–Encirclement
–Guerrilla Warfare
6-23
Competitive Tactics
Defensive Tactics --
–Raise structural barriers
–Increase expected retaliation
–Lower the inducement for attack
6-24
Cooperative Strategies
•Collusion
•Strategic Alliances
•Mutual service consortia
•Joint ventures
•Licensing arrangements
•Value-chain partnerships
Top Related