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Introduction 2 Business Session

By

Strategy
Strategy is the direction and scope of
an organisation over the long term :
ideally, which matches its resources to
its changing environment, and in
particular its markets, customers or
clients so as to meet stakeholder

The clear cut choices about how to


compete

The direction or path chosen to pursue


the goal

Strategy vs Tactic
Strategy is the path or choice made to
pursue the goal

Tactic is the rate or speed at which you


pursue the strategy

The Two School of Thoughts on Strategy


Michael E. Porter
Deliberate strategy
Involves more of planning and
implementing those plans
When the past was quite helpful in
predicting the future

Henry Mintzberg
Emergent strategy
Strategy emerges over time as
intentions collide with and
accommodate a changing reality
Emergent strategy is a set of
actions, or behavior, consistent
over time, a realized pattern
[that] was not expressly intended
in the original planning of strategy
Reference: Porter or Mintzberg: Whose View of Strategy Is the Most Relevant Today?
-By Karl Moore

Porters Five Forces Model


Potential Entrants

Supplier Concentration
Importance of Volume
Threat of forward
integration

Threat of New
Entrants

Economies of Scale
Switching Cost
Access to distribution
channels
Cost Disadvantages
Government Policy

Industry Competitors
Suppliers

Buyers
Bargaining Power
of Suppliers

Availability and performance


of substitutes
Switching Costs incurred by
the buyers
Propensity of buyer to
substitute

Rivalry among existing


firms

Bargaining Power
of Buyers

Threat of Substitute

Substitutes

Buyer to Supplier Ratio


Buyers Purchase Volume
Threat of backward
integration

Reference: Competitive Strategy


-By Michael E. Porter

BCG matrix or Growth share


matrix

10%

1.0X

STRATEGIC GROUP
MAPPING

Who is Our Competitor?


Inner
Primary
Secondary
Tertiary

Suppliers, Complementors

Maruti, Hyundai, BMW, Mercedes

Indian Railways, Buses, Airlines

Cisco Video Conferencing

Strategic Group
A cluster of firms in an industry with similar competitive approaches
and market positions
Firms in same strategic group have at least two or more common
characteristics

Hunt coined the term strategic group in 1972 when he noticed sub-groups of businesses with similar characteristics in
the same market. Michael Porter then expanded the concept in the 1980s.

Indian Retail Apparel Sector

Group C
Group A

Group D

Group B

Importance of Perceptual Strategic Group Mapping Competition is in Mind of Customer

Primary Research

ASSIGNMENT
Group Assignment
Perform Strategic Analysis
(Environmental, Industrial,
Competitor, and Firm level)
of the given firm.
Draw Strategic Roadmap for
the firm (1-3 years)
Deadline: July 7, 2016 9:00am
Compulsory
Max. 6 slides

Individual Assignment
Select one of the
Models/Frameworks in the
domain of strategy and write
about
How powerful the tool is
When to use the tool
How to use the tool (prerequisites)
Limitations of the tool
Example

Deadline: July 7, 2016 9:00am


Optional
Max. 2 pages

STAY SOLVED !!