Competitive conditions and overall industry attractiveness

An industrys Competitve conditions and overall industry attractiveness is a very big strategy A company can make strategy on the basis of competitive factors . Competitive factors such as price Product Quality performance features services warrenties etc.

Price
Eg. Tv channels rates were fix but now a days price decided according to no. of channels like IN DTH SERVICE.

Product quality

Apple is the most reliable laptop company as well as lenovo and dell.

Advertisement
Eg. Airtel jingles v/s vodafone mascots

service

Dominos pizza v/s pizza hut for free home delivery. Now hotels also give free home delivery.

Competitive weakness on the part of one or more rivals presents opportunities for strategic action.

Eg. DURDARSHAN V/S ZEE TV AND STAR PLUS AND LIKE VISE OTHER CHENNELS Gas cycilender is replaced by gas pipelines.

When competitors condition is significantly strong then a company must respond with strategic actions to protect its positions.
Eg. E-chaupal of ITC V/S project shakati of HUL in rural area.

v/s

FRESH MOVES ON THE PART OF RIVAL COMPANIES

Coca-Cola dominated the U.S. market, it expanded their business globally starting in 1926 to increase sales and profits. kesari tavels

CHANGE IN THE INDUSTRYS PRICE COST PROFIT ECONOMICS

Eg.
Vodafone and airtels SIM cards are competiting with aircel as well as with uninor and tata docomo etc. They provide low cost for calls as well as sms facility in low prices.

SHIFTING BUYERS NEEDS AND EXPECTATION

EG. trend of gifting mithae has been changed, now people prefare to gift chocolate celebration in festival time period.

NEW TCHONOLOGYICAL DEVELOPMENTS

EG. From Black and white tv to now a days LED and Smart tv are also available in the market

A COMPANYS STRATEGY CANT PRODUCE REAL MARKET SUCCESS UNLESS IT FITS THE INDUSTRY AND COMPETITIVE SITUATION. EG. Coke Blak was one of many, many efforts Coca-Cola Company made to improve the declining cola sales of 2005.

When a firm concludes its industry environment has grown unattractive and it is comfortable in investing company resources elsewhere, it may begin a strategy of disinvestment.

THE COMPANYS MARKET OPPORTUINITIES AND EXTERNAL THREATS

BUSINESS OPPORTUNITIES &EXTERNAL THREATS MAY HELP IN MAKING A SUITABLE STRATEGY FOR THE COMPANY. BOTH POINT TO THE NEED FOR STRATEGIC ACTION.

Strategy should provide a defense against external threats.

Eg. Prestige was market leader and provides safety in their product . And then Hawkins may come in the market to make his position in the market, it attacks to the weak area, and give fashionable look to the pressure cooker i.e. black metallic body.

Crafting offensive moves to capitalize on the cos most promising market opportunities

Eg. Gujarat samachar was market leader but divya bhaskar came up with coupens in the news paper and than gujarat samachar also started with it. Manager have to examine the opportunities and threats presnted by changes in the market place and immediately take strategic action

Company Resource Strengths, Competencies, and Competitive Capabilities

Winning strategies aim at capitalizing on a companys resource strengths and at neutralizing its resource deficiencies.
Factors can enable an enterprise To capitalize on a particular opportunity Give the firm a competitive edge in marketplace Become the cornerstone of the enterprises strategy

The best path to competitive advantage:competitively valuable resources and competencies where rival do not have matching or offsetting Rival cant develop comparable capabilities except at high cost or over an extended period of time
Manager must introduce only that strategy which fits the enterprises particular resource strength and weakness.

Ex Sony's core competencies/ capabilities and competitive advantages are as follows:

 miniturization with the use of electronics innovative designs manufacturing progress good marketing deep technological know-how short, if not quick design-to-market cycle

Lan indicator of a very integrated in-house system) high quality products Very strong R&D ability to turn out a variety of products based on core-base design that can target mulitple segments, even subsegments of the market.

 Other advantages - brand name recognition the use of proprietary solutions (which can

be a disadvantage too) to lock customers into their products alliances with carl-zeiss for lenses can focus and be relentless willing to experiment, make mistakes and learn from their mistakes Caterpillar

The Personal Ambitions, Business Philosophies, and Ethical Beliefs of Managers

 Managers

choices are influenced by their own vision of how to compete and hoe to position the enterprise By what image and standing they want the company to have influence on strategy : managers Ambitions Values Business philosophies

Factors

Attitudes towards risk Ethical beliefs have to have their hearts in it.

People
Attitude

of Risk-avoider manager will imply more Conservative strategy whereas Risk-taker manager lean towards more opportunistic strategy

 Risk-taker

prefers innovation and Riskavoider prefers minimizing downside risk values shape the ethical quality of a firm. ethics of managers also influence the strategy of firm and its quality level.

Managerial

Strong

Ex. Quality of Amul products

Ex. TATA