STRATEGIC MANAGEMENT

LEVELS OF STRATEGY
• Corporate
• Functional
• Business
 CORPORATE STRATEGIES
• Grand Strategy
– Stability
– Growth
– Retrenchment
• Portfolio Matrix
 BCG MATRIX
Market
H Share LO
IGH W
H
IGH

Growt
h

LO
W
 BUSINESS-LEVEL STRATEGY
• 5 forces
• SWOT
• Generic Strategies
 Entry Barriers
Economies of Scale
Brand Identity
Capital Requirements Rivalry Determinants
Industry Growth
Fixed Costs
New Product Differences
Determinants of Supplier Power Entrants Brand Identity
Switching Costs Exit Barriers
Supplier Volume
Impact
Forward Integration
Industry
Competitor
s
Suppliers Buyers
Intensity
of Rivalry Determinants of Buyer Power
Buyer Concentration
Determinants of Buyer Volume
Substitution Threat Backward Integration
Relative Price
Performance
Switching Costs
Substitutes
 S.W.O.T. ANALYSIS
S W

O in
• S W O T represents the first letter T
– S trengths
– W eaknesses
– O pportunities
– T hreats
• Strategy-making must be well-matched
to both
– A firm’s resource strengths and weaknesses
– A firm’s best market opportunities and external threats to
its well-being
 4 GENERIC STRATEGIES

Lower Cost Differentiation

Broad
Target
Scope

Narrow
Target