STRATEGIC MANAGEMENT

LEVELS OF STRATEGY
 Corporate
 Functional
 Business
 CORPORATE STRATEGIES
 Grand Strategy
– Stability
– Growth
– Retrenchment
 Portfolio Matrix
 BCG MATRIX
Market Share
HIGH LOW

HIGH
STARS QUESTION
MARKS
??
Growth
CASH COWS DOGS

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

 S W O T represents the first letter in

– S trengths S W
– W eaknesses
– O pportunities
– T hreats O T
 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 Cost Leadership Differentiation
Scope
Cost Focus Differentiation
Narrow Focus
Target