STRATEGIC

MANAGEMENT
 STRATEGY
Consist of the competitive
moves and business
approaches management.
Three Critical Questions
Where are we now?
Where do we want to go?
How are we going to get
there?
 Where are we now?
 Financial performance
 Market standing
 Resources and Capabilities
 Weaknesses
Where do we want to go?
 Vision
 What new - customer groups
and needs
 Change the business makeup
How are we going to get there?

 Developing a business game

plan.
 New opportunities and
threats.
 Sustainable Competitive
Advantage
 Allows a company to attract
sufficiently large numbers of buyers
who have a long lasting preference
for its products or services over the
offerings of competitors.
 4 Strategic Approaches
1. Developing a cost-based advantage.
2. Creating a differentiation-based advantage.
3. Focusing on a narrow market niche within an
industry.
4. Developing competitively valuable resources
ang capabilities that rivals can’t easily match,
copy or trump with substitute resources.
 1. Developing a cost-based
advantage.
- utilized low-cost provider
strategies to earn strong market
positions in their respective
industries.
 2.Creating a differentiation-based
advantage.
- entails adding product or service
attributes that offer customers greater
tangible or intangible benefits than the
product or service.
3. Focusing on a narrow market niche
within an industry.
- Serving the special needs and taste of
only a small segment of an industry’s
buyer rather than attempting to appeal to
all buyers in an industry.
 4. Developing competitively valuable
resources ang capabilities that rivals
can’t easily match, copy or trump with
substitute resources.
- Delivering customer value in ways rivals
are unable to match.
A company’s strategy is
not a one-time event, but
is always a work in
progress.
 Why a Company’s Strategy evolves over Time

 High-velocity change requires companies to

repeatedly adapt their strategies.
Deliberate strategy on going actions that have
proven themselves in the market place and
newly launch initiatives aimed at building larger
lead over rivals.
 Abandoned strategy
components of companies
deliberate strategy will fail in
the market place.
Emergent strategy unplanned, reactive
adjustments that form the company.

Realized strategy tends to be a

combination of deliberate planned
elements and unplanned, emergent
elements.
 The importance of a
Company’s Business
Model- Is the strategy a
Money Maker?
 Business Model is managements
blueprint for delivering a valuable
product or service to customers in a
manner that will generate revenues
sufficient to cover cost and yield an
attractive profit.
 Three elements of a company’s
business model
1.It’s customer value preposition.
2.The profit formula.
3.Identification of the key resources and
processes.