Professional Documents
Culture Documents
Types of Strategies
Forward
Integration
Vertical Backward
Integration Integration
Strategies
Horizontal
Integration
VERTICAL INTEGRATION
STRATEGIES
INCREASING RISK
Sell more in existing
Sell new products in
Markets
existing markets
MARKETS
MARKET
EXTENSION DIVERSIFICATION
Market
Penetration
Intensive Market
Strategies Development
Product
Development
INTENSIVE STRATEGIES
Related
Diversification
Diversification
Strategies
Unrelated
Diversification
DIVERSIFICATION STRATEGIES
Unrelated
Adding new, unrelated products
Diversification or services
Types of Strategies
Retrenchment
Defensive Divestiture
Strategies
Liquidation
DEFENSIVE STRATEGIES
Differentiation
Focus
TYPE 1 COST LEADERSHIP
STRATEGY CONDITIONS
Vigorous price competition
Plentiful supply of identical products
differentiation approach
Fast paced technological change and
evolving product features
TYPE 3 FOCUS STRATEGY
CONDITIONS
Large, profitable, and growing target
market niche
Industry leaders do not consider the niche
crucial to their success
Industry leaders consider it costly or
difficult to meet the needs of this niche
Industry has many niches and segments
Few rivals are specializing on this target
segment
MEANS FOR ACHIEVING
STRATEGIES
Cooperation among competitors
Joint venture / partnering
Merger / acquisition
Outsourcing
STRATEGY ANALYSIS & CHOICE
COMPREHENSIVE STRATEGY-
FORMULATION FRAMEWORK
Stage 1 - Input Stage
EFE Matrix
IFE matrix
CPM
Stage 2 - Matching Stage
TOWS
SPACE matrix
BCG matrix
IE Matrix
Grand strategy matrix
Stage 3 - Decision Stage
QSPM
Stage 2: The Matching
Stage
TOWS Matrix
Strengths
Weaknesses
Opportunities
Threats
TOWS Matrix
Four Types of
Strategies
Strengths-Opportunities (SO)
Weaknesses-Opportunities (WO)
Strengths-Threats (ST)
Weaknesses-Threats (WT)
TWOS MATRIX
SO strategies use a firms internal
strengths to take advantage of external
opportunities
WO strategies improve internal weaknesses
SPACE Matrix
IE Matrix
Build
Harvest Divest
Strategy-Formulation Analytical
Framework
Stage 3:
The Decision Stage
Quantitative Strategic
Planning Matrix
(QSPM)
QSPM
Technique designed to
determine the relative
attractiveness of feasible
alternative actions
QSPM Strategic Alternatives
Key External Factors Weight S1 S2 S3
Economy
Political/Legal/Governmental
Social/Cultural/Demographic/
Environmental
Technological
Competitive