What is Strategy and how do

you know if you have one ?

Submitted To:
Prof. Dr. Sajid Haider Sb.

Submitted By:
Muhammad Qadeer Aslam & Group
Confusion to understand the concept of
Strategy.

Although part of the confusion is

undoubtedly self-inflicted.

Lack of understanding as to the content of

Strategy.
 Research on Strategy
• Based on Research, there are certain simple but
fundamental principles underlying every
successful strategy.

• All successful strategies share the same

underlying principals or Building Blocks.

• An organization can use them to develop its

own successful strategy.
 Strategy must decide on a few
parameters
Uncertain and ever-changing
environment strategy is all about making
some very difficult decision on a few
parameters.
These parameters become the
boundaries within which people are
given the freedom and the autonomy to
operate and try things out.
 What are these Parameters ?

• Who will be its targeted customers and who it will not

target;
• What products or services it will offer its chosen customers
and what it will not offer them;
• How it will go about achieving all this ?
• What activities it will perform and what activities it will not
perform ?
Not only A company must make clear choices on
these parameters, it must also attempt to
make choices that are different from the
choice its competitors have made.
 Who Comes up with ideas ?
What is Strategic Ideas ?
1. Who to target ?
2. What to Sell ?
3. How to do it ?
COMES FROM
• Any Body
• Anywhere
• Anytime
 Tactics can be used at the idea
generation stage.
1. Encourage everyone.
2. To facilitate questioning create a positive
crisis.
3. Develop process in the organization to
collect and utilize ideas from everybody.
4. Create variety in the thinking that takes
place in formal planning processes.
5. Institutionalize a culture of innovation.
 Xerox VS Canon
XEROX CANON

Segmented Market BY Volume Segmented Market by End User.

Copier Design for High Speed Distribution Method (Dealer Network)

High Volume Needs Copier for Individuals

Distribution Method (Direct Sales) Concentrate on Quality and Price

IBM and Kodak adopt the same strategy

IBM and Kodak’s assault on the copier market failed and Canon succeed.

Within 20 Years Canon emerged as the market leader in volume terms.

 Influence of Environment
Environment Includes:

• Organizational Culture
• Incentives
• Structure
• People
 7s Framework developed by Mc
Kinsey & Co
1. Style
2. Strategy
3. Structure
4. Systems
5. Skills
6. Staff
7. Superordinate goals
 No Strategy Remains Unique for
Ever
• Aggressive Competitors can imitate
• Changing Industry Conditions
• Changing Customer Needs
• Changing Customer Preferences

Firm must continuously search for

new positions and new
opportunities to take advantage of
 No Strategy Remains Unique Forever

•A new customer segment (a new who)

•A new value proposition (a new what)

•A new way of distributing or

manufacturing the product (a new how)
• Firms miss these new combinations and other,
more agile, players will jump in and exploit the
gaps left behind.
• Most of them take the established rules of the
game as given and spend all their time trying
to become better than each other in their
existing position – usually through cost or
differentiation strategies.
 Why Firms Fails to Become
Strategic Innovators
• Structural and cultural inertia
• Internal Politics
• Complacency
• Fear of cannibalizing existing
product
• Fear of destroying existing
competencies
Firm do not want to innovate strategically (for
fear of destroying their existing profitable
position.

A company needs to remain flexible and ready

to adjust its strategy.
Thanks