Dr. T.K.

Vijay Kumar
Dr. T.K. Vijay Kumar
Things are always Different
the art is figuring out which
differences matter.
Laszlo Birinyi

Dr. T.K. Vijay Kumar
Industry and Competitive Analysis
Strategy and Competitive Advantage
Company Situation and Analysis
Dr. T.K. Vijay Kumar

Four Basic Elements
Strategic management is the process of moving where you are
to where you want to be in future through
sustainable competitive advantages
Options on
Competitive
Positioning
Learning
points from
deviations
Dr. T.K. Vijay Kumar
Two Considerations:
Companys External or
Macro-Environment
Industry and Competitive conditions

Companys I nternal or
Micro-Environment
Competencies, Capabilities, Resources
Strengths and Weaknesses, and
Competitiveness
Dr. T.K. Vijay Kumar
Dr. T.K. Vijay Kumar
Scanning the Environment ~ STEEEPL
Internal,
External,
Domestic and
Global environment,

Macro Environmental Factors
Demographic, Socio-Cultural, Economic, Political, Natural, Technological,
Legal, Govt. Policies..


Dr. T.K. Vijay Kumar
1. What are the industrys strategy-shaping economic features?
2. What kinds of competitive forces are industry members
facing, and how strong is each force?
3. What forces are driving changes in the industry, and what
impact will these changes have?
4. What market positions do industry rivals occupy?
5. What strategic moves are rivals likely to make next?
6. What are the key factors for future success?
7. Does the outlook for the industry present the company with
sufficiently attractive prospects for profitability?

Ref: STEEEPL
Dr. T.K. Vijay Kumar
By studying the firms
(internal) capabilities &
resources, firms identify
what they can do (over time)
Unique Resources,
Capabilities, and
Competencies
(Sustainable Competitive
Advantage)
Dr. T.K. Vijay Kumar
How do we effectively manage current core
competencies while simultaneously developing
new ones? (Exploit/ Explore)

How do we assemble bundles of resources,
capabilities and core competencies to create
value for customers?

How do we learn to change rapidly?
Dr. T.K. Vijay Kumar
Assessing the firms capabilities/strengths & weaknesses in
the various areas:

Finance / Marketing/ Human Resources / Operations/ R & D /
General Management
Developing the strength-weakness profile
Appraising the individual businesses/strategic business units
(SBUs) of the firm
Identifying the competitive advantages and core competencies
and developing the competitive advantage profile (CAP)
Examining the capability gap (gap between existing
capabilities and the ones needed for pursuing the spotted
opportunities)


Dr. T.K. Vijay Kumar
Identifying Core
Competencies
Resources
Tangible
Intangible
Capabilities
Core
Competencies
Identify
sustainable
competitive
advantages
Strategic
Competitiveness
Four Criteria
of Sustainable
Advantage
Valuable
Rare
Imitation/Substitutes = costly
Organized properly
Value
Chain
Analysis
In/Outsource
decisions
* Value-Add Info.
Dr. T.K. Vijay Kumar
Discovering Core
Competencies
Resources
Tangible
Intangible
Tangible
Financial
Physical
Labor

Intangible
Technological
Innovation
Reputation
Organizational activity systems
Knowledge
Dr. T.K. Vijay Kumar
Discovering Core
Competencies
Competitive
Capabilities
Competitive Capabilities describe the firms ability to
Create, Deploy, Modify, Reconfigure, and Leverage
resources.
Valuable capabilities permit resources to be combined
in unique ways to create Core Competencies
Dr. T.K. Vijay Kumar
Environmental Factors specific
to the business concerned :~

Industry & Competition / Market/Customer / Technology
Supplier Factors / Govt. Policies
Spotting the opportunities & threats
Checking the attractiveness and probability position of
these opportunities
Highlighting those opportunities the pursuit of which will help
the firm bridge its strategic planning gap
Developing the opportunities-threats profile (OTP)


Dr. T.K. Vijay Kumar

Dr. T.K. Vijay Kumar

Dr. T.K. Vijay Kumar Dr. TK Vijay Kumar
Dr. T.K. Vijay Kumar
* Value-Add Info.
Dr. T.K. Vijay Kumar
* Value-Add Info.
Dr. T.K. Vijay Kumar
BCG Matrix can help understand a frequently made strategy
mistake: having a one-size-fits-all-approach to strategy,
* Value-Add Info.
Dr. T.K. Vijay Kumar
* Value-Add Info.
Dr. T.K. Vijay Kumar