-Strategy ASSIGNMENT

-Dania Mishref Al.Falah

-Related CH6
-Supervisor Dr. Ala’Adin Alrowad

Strategy formulation
- Strategic planning or long-range planning
 Develops mission, objectives, strategies, policies

 process of finding a strategic fit between external
opportunities and internal strengths while working around
external threats and internal weaknesses

IFAS – Maytag as Example

EFAS – Maytag as Example
SFAS Matrix

Situational Analysis

 Niche --
– Need in the marketplace that is currently
unsatisfied
  Corporate Goal --
– Find propitious niche
– Strategic window

SWOT --
– Internal
 Strengths/Weaknesses
– External
 Opportunities/Threats

TOWS Matrix
Business Strategy
Focuses on improving competitive position of
company’s products or services within the specific
industry or market segment

Porter’s Competitive Strategies: -

 Generic Competitive Strategies --
– Lower Cost strategy
 Greater efficiencies than competitors
– Differentiation strategy
 Unique/superior value, quality, features,
service

 Competitive Advantage --
– Determined by Competitive Scope
• Breadth of the target market
 Porter’s Competitive Strategies

Cost Leadership --
– Low-cost competitive strategy
– Broad mass market
– Efficient-scale facilities
 – Cost reductions
– Cost minimization

Differentiation –
– Broad mass market
– Unique product/service
– Premiums charged
– Less price sensitivity

Cost Focus –
– Low-cost competitive strategy
– Focus on market segment
– Niche focused
– Cost advantage in market segment

Differentiation Focus –
– Specific group or geographic market focus
– Differentiation in target market
– Special needs of narrow target market
Stuck in the middle –
– No competitive advantage
– Below-average performance

Competitive Strategies
 Best Cost Provider –
A company has an ability to incorporate attractive
or upscale attributes at a lower cost than rivals.

Competitive Tactics

 Timing Tactics --
– First mover
– Late movers

 Market Location Tactics --

 – Frontal Assault
– Flanking Maneuver
– Bypass Attack
– Encirclement
– Guerrilla Warfare

 Defensive Tactics --
– Raise structural barriers
– Increase expected retaliation
– Lower the inducement for attack

Cooperative Strategies
 Collusion
 Strategic Alliances
 Mutual service consortia
 Joint ventures
 Licensing arrangements
 Value-chain partnerships