Module -3

Generic Strategies
Company could use Generic Strategy to gain Competitive advantage.
Cost Leadership Strategy
Reducing cost in every area of production, Marketing, Wastage .example: Toyota (JIT – Just in Time)
Differentiation Strategy
Differential Products for different segments.
Focus Strategy
Niche Segment – Focusing on a narrow segment. Example – Luxurious Car

Grand Strategies
It involves the decision of choosing the long term plans from the set of available alternatives.
1. Stability Strategy – Attempts to maintain current position.
2. Expansion Strategy – Aims to grow.
3. Retrenchment Strategy – Reducing one or more business operations to cut expenses and to reach
financial position.
4. Combination Strategy – Combination of any other strategy to improve its efficiency.
Example: Diapers for old people and baby (Expansion)
Shut down its baby Diapers Manufacturing Unit (Retrenchment)
Expansion through concentration – Catering the needs of the identified market with the help of proven
and tested technology. Example – Biju’s App.

Successful Marketing Strategies of leading Indian Companies

Asian Paints
Godrej Consumer Products Ltd
Tata Motors
Nirma Chemicals Limited
AMUL Strategies
Nykaa
Fevicol
Parle G
 Assessing Internal Environment through Functional Approach and Value Chain
Value Chain Analysis
Cost associated with Organizational Activities.
Primary Activities
1. Inbound Logistics
2. Operations
3. Out Bound Logistics
4. Marketing & Sales
5. Services
Secondary Activities
1. Procurement
2. Technological development
3. HRM
4. Firm infrastructure
Functional Approach
1. Production Function – Inputs into goods
2. Marketing Function – Buying & Selling
3. Financial Function – Capital & Profit
4. Human Resources Function - Competency
5. R & D Function- New products & Process

Diversification
Diversification, is a strategy for growth through branching out into a new market segment, allowing your
business to expand its presence and occupy a totally new space. This is achieved through expanding or
diversifying your product or service offering to target new customers and grow profits.

Types of Diversification Strategies

Horizontal Diversification
Introducing new products or services either in a new market segment or exciting market.
Vertical Diversification
The company expands its product line through a forward or backward integration of products within its
exciting supply chain. Example – Company selling cars could diversify and sell tires (Backward)
Toys selling company having its own toy store (Forward)
Concentric Diversification
Introducing new products or services related to your exciting products or services. Example – Apple &
Samsung Smart watches.
Defensive Diversification
In order to remain competitive in the market they diversify. Their exciting products are either in decline
stage or in saturation stage.
Offensive Diversification
When a company is aggressively seeking to grow its profits and market share through diversifying its
product or service line in order to enter new markets and capture more customers.

Importance of Diversification
1. Increases Revenue
2. Lower’s company’s Risks
3. Maximize your company’s current resources
4. Attract new customers
5. Increase your Brand exposure.

Strategic Management for Small Organization

A small business has a choice of two goals:
1. Increase profit but stay small
2. Grow into a larger business
A small business owner is pulled in so many directions that just creating the plan is a responsibility that
takes time away from the business, lt alone implementing it. The solution might to be to manage your
company using the elements of strategic planning in a longer –term, day-to-day effort.
Assessment
 Competitive environment
 Target Customer
 Economy
Positioning
 Operations
 Marketing
 Inventory
 Customer Service
 Cost –efficiency
Write it down
 Bench marks
 Update Strategic Plan
Implementation
 Brainstorming Sessions
 Regular Meetings
 Change the plan accordingly

Strategic Management for Non – Profit Organization’s

Encompasses five basic objectives
1. Formulate Plans and goals for the organization
2. Implement the organization’s plans and goals
3. Review and evaluate the organization’s performance
4. Analyze the organization’s effectiveness and efficiency.
5. Project the Organization’s future position.

Strategies for Large multiproduct and Multiple market organization

A multi-product strategy is one where a company produces many different product or services.
An increasing number of Companies are beginning to offer several products to consumers with each
product maintained and monitored in a very different way. While some companies have driven multiple
product Management successfully, other companies experience difficulty in this type of multiple brand
Management. Even though managing multiple brands can prove to be particularly difficult, there are
some effective strategies that company can utilize.
Strategy 1 : Distinguish and Prioritize between products example – HUL
Strategy 2 : Be honest about what brands will work best example – Colgate
Strategy 3 : Maintain organization at the top levels of a company
Resource to manage
Structure
Marketing Officer
Strategy 4: Create strong AD Campaigns for each product
Strategy 5 : Conform to the products overarching Identity
Example – Colour, design, Shape