Course Title: Strategic Marketing

Course Code: MKT 501

Generic Business Strategies: Combination of 3 investment strategy (such as1. invest, 2. Maintain 3. Harvest) options with the 3types of changes (1.
Competitive position 2. Investment 3. Political position) that a business can
make in its competitive position.
Six generic types of business strategy identify as follows1. Share Increasing Strategy
2. Growth Strategy
3. Profit Strategy
4. Market Concentration & Asset Reduction Strategy
5. Turn Around Strategy
6. Liquidation & Divestiture Strategy
1.

Share Increasing Strategy:

Increases the market share anyhow to transfer a weak business into a average
competitors & average competitors to market leader. Almost needed 50% of
market share target.
Here three stages are found
a) Development stage
b) Shake out stage
c) Other strategy
a) Development stage:
Service development
Product design change
Product positioning & product quality through this share
increasing.
b) Shake out stage:
Product features
Market segmentation
Pricing & distribution
Service effectiveness
c) Other strategy:
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If the sale situation becomes decline then company take this type of
other strategy.

3 decisions have to be taken for share increasing strategy

What type of product, featuring decided by the market.
Do not apply to all market segments.
Adjust with the possible changes in the market.
2. Growth Strategy:
Growth strategy is designed to maintain the firms existing
competitive position in very rapidly expanding market.
Two important features
a) Resources acquisition:
Needed large resources to maintain its current position specially
production sector & marketing sector.
b) Competitive weapons:
Company always tries to develop new types of competitive weapons to
maintain its existing position in the present market.
Growth Strategy Needs:
High business skill.
Physical facilities, i.e. new plant, spending warehouse, sell
personnel & so on.
Cash flow: High investment.
Two alternatives can be consider for growth strategy
I. When resources are not available then single product line or
substitute product line can be taken.
II. By hiring functional areas skills like distribution sector &
marketing sector who have had experience with firms.
3.

Profit Strategy
Business always seeks profit so why should we consider separate
type of strategy whose aim is to improving profitability. Some industry wants
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to seek profit by share increasing & growth. Profit strategy is the separate
strategy. The main aim is improving existing situation. e.g. General Motor vs.
Toyota.
General Motor failed because poor marketing & no diversification
but Toyota introduce small cars & attractive marketing strategy. It has been
done for taking profit strategy.
To achieve the objective 3 analysis can be used
a) Sensitivity analysis.
b) Gap analysis.
c) Return on Investment.
The most appropriate situation profit strategy
Market leader become failure to maintain the market.
When major technologies break through.
Advantages of brand loyalty.
Finding the serious week point of the competitors.
4.

Market Concentration & Asset Reduction Strategy

Especially there are two types of circumstances when such strategies are
appropriate.
When a week competitive position exist in the market.
As the decline stage of product life cycle.
The situations are
First target to a small market or niche.
Acquiring some similar firm.
Work under large multinational firm.
Liquidating the business.

5.

Turn Around Strategy:

When the performance of the company is decline, situation is
failure immediate question of the existence the company that the reason a
turnaround is needed. The company situation is continuously decreasing &
the question can be business be profitable over long term? The goal of this

strategy is to reveres the declining fortune of the business involves as rapidly

as possible.
There are 4 options that can be perused
Revenue increasing strategy.
Cost decreasing strategy.
Assets reduction strategy.
Combination strategy.

The special Turn around Strategies are:

o Collecting receivables.
o Cutting inventories.
o Increasing price.
o Changing sales mix.
o Increasing labor productivity.
o Increasing advertising.
o
Under what circumstances one should suggest Turn Around
Strategy?
o When the performance of the company has declined.
o Situation is failing immediately.
o Question of the existence of the company.
o When the question occurs: Can the business become profitable
over long term?
6. Liquidation & divestiture Strategy
When a company cannot run his business then take this
policy. e.g. Adamji Jute mills are one of the largest industry in Asia , when it
is running condition its losses become higher then its fall into closing
condition .In such situation there is no alternative of liquidation.
There are 2 ways a firm can withdraw successfully from a market:
I. Milking the business by withdrawal all no invest, product simplification,
close everything phase by phase.
II. Early withdrawal: close the operation.
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