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Strategy and

Strategic
decisions

GROUP 9
TEAM

Priyanka Rohit Roy Parvataneni Jitesh Nallamothu Rajratna


Sharma Nishant Thakur Jagannath Wankhade
MBA06111 MBA06121 MBA06100 MBA06073 MBA06087 MBA06202
A Strategy captures just enough of the big
picture to help all decisions fit together.

What makes something a


strategy

A way to see what strategy is by looking


where strategy is missing to understand its
importance. A strategy is a framework for
making decisions about how you will play
the game of business.
The strategy is defined as the smallest
set of choices to optimally guide (or
force) other choices towards sustained
superior performance.
Guidance
Threefold Identify decisions that are included and excluded from the

Strategy Test strategy.


Identify decisions that are critical for the strategy.
It should make clear how the decisions need to be taken.

Specificity
The strategy implemented by the company needs to be a
differentiating factor.
Check whether it is clear, how the strategy does not apply to the
competitor.

Conciseness
It should be the smallest set of choices.
The strategy should be concise. People should be able to
remember it.
Conciseness should be balanced with clarity.
APPLE
Mission: To bringing the best user experience to its customers through its
innovative hardware, software, and services.
Best user experience
Innovative hardware
Innovative software and services

Vision: We believe that we are on the face of the earth to make great products
and that’s not changing.
Making great products
Focusing on innovation
Simplicity in place of complexity
Controlling the primary technologies
Focus on a few key projects
The business strategy of the company leverages its remarkable ability to design and
build its own operating systems, hardware, application software, and services to provide
creative design, exceptional ease-of-use, and seamless functionality for its clients,
through its products and solutions.
Six Elements of Strategy
The Six Elements are divided into two catagories
The first group are the levers for Competitive Advantages

Configuration of
Asset choice

Scope Scale
The second group consists of Value proposition and Cost Structure

Positioning VALUE PROPOSITION COST STRUCTURE


What makes a decision strategic ?

Three Characteristics:-

1) A central and high level choice

Example - IKEA'S focus on young minds.


2) Uncertain choices with clear implications.
Example - Organic retailers have businesses based on this strategy. Although the choice
of not being 'organic' is uncertain, it is based on clear implications.

3) Reliable and persistent choices.


Long-term objectives coupled with reliability and persistence are essential in forming a
good strategy.
Strategy and competition

Force a competitor to make


particular choices

Assess both likelihood and


consequences
Be careful about antitrust
The strategy of JIO
June 11, 2010: Reliance buys a 95 percent stake in Infotel to enter the
telecom business.
November 8, 2011: Infotel (later renamed as Reliance Jio)acquires stakes in
Extraminds, which focuses on digital marketing.
April 2, 2013: Announces Rs. 1200 crore deal with Reliance Communication
to use its pan-India optic fiber.
April 23, 2013: Partners with Bharti to use its submarine cable (which
connects India to Singapore).
June 7, 2013: Signs second deal with RCom to use 45,000 ground and roof-
top towers.
October 25, 2013: Becomes the first telecom operator to get pan-India
Unified Licence in 22 circles.
January 3, 2014: Showcases long-term-evaluation (LTE) technology at the
Techfest in IIT, Mumbai.
December 28, 2015: Launched Reliance Jio with a big event.
Strategy used
Use of new technology
Use of maximum coverage
Use of big-scale operation to drop
prices
The national roll-out of product

Effect on telecom market

Bharti Airtel : Up to 80% lower data tariffs


Idea Cellular: Up to 67% lower data tariffs
Vodafone: More data for the same price
When is the strategy most
important?

Interaction Across Decisions

1. Ability to create a movement


2. Products are visionary and life-changing.
Uncertainty
3. Amazingly advanced technologies.
4. Products to enhance people's lives in some way.
5. Part of something ultra-modern and ultra innovative.

Irreversibility
Thank you!

We are open to questions

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