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
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