SlideShare ist ein Scribd-Unternehmen logo
1 von 61
Downloaden Sie, um offline zu lesen
STRATEGICANALYSIS
Prof. Prashant Mehta
National Law University, Jodhpur
STRATEGICANALYSIS
Introduction
Strategic Analysis
Situational Analysis
The Methods of Industry and Competitive Analysis
SWOT Analysis
TOWS Matrix
Portfolio Analysis
Introduction:EnvironmentalScanning
Strategic Analysis
“Developing a theoretically informed understanding of the environment in
which an organisation is operating, together with an understanding of the
organisation’s interaction with its environment in order to improve
organisational efficiency and effectiveness by increasing the organisation’s
capacity to deploy and redeploy its resources intelligently”.
The two most important situational considerations are:
• Industry and Competitive Conditions
• Company’s own competitive capabilities, resources, internal strength, weakness,
and market position.
Understanding companies environment (both internal and external) will
create a winning strategy or else company will loose its competitive
advantage and companies performance will be affected.
Issuesto Considerfor Strategic Analysis
• Strategy evolves over a period of time: It involves study of possible
implications of small routine decisions taken over a extended period of time
and these decisions must be balanced.
• Balance: Strategic analysis involves workable balance between diverse and
conflicting considerations. For example matching internal potential of firm
with environmental opportunities. Constraint forces vary in
nature, degree, magnitude, and importance. These factors can be managed
to certain extent.
• Risk: As competitive markets
grows, liberalization, globalization, technological advancements, inter
country relations pose risks at varying degree. Thus strategic analysis should
identify potential imbalance / risk and assess their consequences.
Strategic RiskAnalysis
Errors in
Interpreting the
environment cause
strategic failure
Changes in the
environment lead
to obsolescence of
strategy
Organizational
capacity is unable
to cope up with
strategic demand
Inconsistencies
with the strategy
are developed on
account of changes
in internal
capacities and
preferences
Long TermShort Term
TIME
ExternalInternal
StrategicRisk
SituationalAnalysis
•External
Environment
•Internal
Environment
Strategic
Thinking
•Where Company
Needs to Go
Form Strategic
Vision •Promising
Strategic Option
for the Company
Identify
•The Best
Strategy and
Business Model
for the Company
Select
• Product Situation – My current products
• Competitive Situation – Analyze the main competitors
• Distribution Situation – Review your distribution system
• Environmental Factors – Analyze the external and internal environment
• Opportunity and Issues Analysis – SWOT analysis
FrameWorkof Strategic Analysis
External Analysis
Customer Analysis
Competitors Analysis
Market Analysis
Environmental Analysis (PEST)
Internal Analysis
Performance Analysis
Determinates Analysis (Past and Current
Strategies, Capabilities and Constraints)
Opportunities, Threats, Trends, and Strategic
Uncertainties
Strategic
Strengths, Weaknesses, Problems, Constraints, and
Weaknesses
Strategy Identification and Selection
Identify Strategic Alternatives (Functional
Area, Assets, Synergies)
Select Strategy
Implement Operating Plan
Review strategy
Methodsof Industryand CompetitiveAnalysis
Industry and Competitive analysis aims at developing insight into several
issues like industry traits, intensity of competition, drivers of industry
change, market position, and strategy of rival companies, industry profit
outlook etc. It is thus thinking strategically about investing into some
company. The issues to look into are:
• Dominant Economic Features of Industry
• Nature and Strength of Competition
• Triggers of Change
• Identify the Companies that are in Strongest / Weakest Positions
• Likely Strategic Moves of Rivals
• Key factors of Competitive Success
• Prospects and Financial Attractiveness of Industry
DominantEconomicFeaturesof the Industry
• Market size and growth rate/stage in life cycle
• Scope of competitive rivalry
• Number of competitors and relative sizes
• Prevalence of backward/forward integration
• Entry/exit barriers
• Nature and pace of technological change
• Product and customer characteristics
• Scale economies and experience curve effects
• Capacity utilization and capital requirements
• Industry profitability
Natureand Strength of Competition
• Moderate
• Fierce
• Cutthroat
• Best Price
• Product Quality
• Product Reliability (washer and dryers, PC’s)
• Service Quickness and Reliability (Fast foods, online shopping)
• Product Features and Performance (Cars, cameras)
• Brand Reputation (Beer, soft drinks)
• Cooperation with Suppliers
• Cooperation with Customers
• Cooperation with other Competitors
Triggers of Change
• Industries change because forces are driving industry participants to alter their actions. Driving forces
are the major underlying causes of changing industry and competitive conditions.
• Identify those forces likely to exert greatest influence over next 1 - 3 years, Usually no more than 3 – 4
factors qualify as real drivers of change, Assess impact. What difference will the forces make – favorable
/ unfavorable?
• Internet and e-commerce opportunities (Increasing globalization of industry)
• Changes in long-term industry growth rate
• Changes in who buys the product and how they use it
• Product innovation - Technological change/process innovation
• Marketing innovation
• Entry or exit of major firms
• Diffusion of technical knowledge and Changes in cost and efficiency
• Market shift from standardized to differentiated products (or vice versa)
• Regulatory policies / government legislation / Changing societal concerns, attitudes, and lifestyles
• Changes in degree of uncertainty and risk
IdentifyingCo. Strongest / Weakest Points
• One technique for revealing the different competitive positions of industry rivals
is strategic group mapping. A strategic group consists of those rivals with similar
competitive approaches in an industry.
• Firms in same strategic group have two or more competitive characteristics in
common
• Sell in same price/quality range
• Cover same geographic areas
• Be vertically integrated to same degree
• Have comparable product line breadth
• Emphasize same types of distribution Channels
• Offer buyers similar services
• Use identical technological approaches
ProcedureforConstructingaStrategicGroupMap
• STEP 1: Identify competitive characteristics that differentiate firms in an industry from one
another
• STEP 2: Plot firms on a two-variable map using pairs of these differentiating characteristics
• STEP 3: Assign firms that fall in about the same strategy space to same strategic group
• STEP 4: Draw circles around each group, making circles proportional to size of group’s
respective share of total industry sales
Guidelines for Strategic group Maps
• Variables selected as axes should not be highly correlated, and should expose big
differences in how rivals compete
• Variables do not have to be either quantitative or continuous
• Drawing sizes of circles proportional to combined sales of firms in each strategic group
allows map to reflect relative sizes of each strategic group
• If more than two good competitive variables can be used, several maps can be drawn
LikelyStrategic Movesof Rivals
• A firm’s own best strategic moves are affected by
• Current strategies of competitors
• Future actions of competitors
• Profiling key rivals involves gathering competitive intelligence about their
• Current strategies
• Most recent moves
• Resource strengths and weaknesses
• Announced plans
PredictingRivals’Next MovesInvolves
• Analyzing their current competitive positions
• Examining public pronouncements about what it will take to be successful in
industry
• Gathering information from grapevine about current activities and potential
changes
• Studying past actions and leadership
• Determining who has flexibility to make major strategic changes and who is
locked into pursuing same basic strategy
Key Factorsof CompetitiveSuccess
• Competitive elements most affecting every industry
member’s ability to prosper
• Specific strategy elements
• Product attributes
• Resources
• Competencies
• Competitive capabilities
• Competitive Success Factor spell the difference between
• Profit and loss
• Competitive success or failure
Strategic Analysis
Prospectsof FinancialAttractivenessof Industry
• Things to Consider
• Industry’s market size and growth potential
• Whether competitive conditions are conducive to
• Rising/falling industry profitability
• Will competitive forces become stronger or weaker
• Whether industry will be favorably or unfavorably
• Impacted by driving forces
• Potential for entry/exit of major firms
• Stability/dependability of demand
• Severity of problems facing industry as a whole
• Degree of risk and uncertainty in industry’s future
SWOTAnalysis
• Generation of Series of Strategic
Alternatives
• Strength is inherent capability of an
organization helps to gain strategic
advantage over competitors
• Weakness is inherent limitation or
constrain of an organization which creates
strategic disadvantage
• Opportunity is favourable condition which
enables organization to strengthen its
position
• Threats is an unfavourable condition which
results into risk, damage to organization.
Strategic Analysis
Set of Strategies
• Functional Level Strategy – Directed at improving effectiveness of operations
like marketing, finance etc..
• Business Level Strategy – Business overall competitive theme, including cost
leadership, differentiation, focusing on particular segment etc.
• Global Level Strategy – How to expand operations outside home country and
global competitive advantage.
• Corporate Level Strategy – Which business should we be in and how to maximize
profitability in long run.
• The organizational performance in market is influenced by:
• Organizations correct market position,
• The nature of environmental opportunities and threats
• Organizational resource capability to capitalize on situations
Significanceof SWOT Analysis
• Provides Logical Framework for handling issues having bearing on business
situation, generation of alternative strategies and choice of strategy.
• Presents Comparative Account of both internal and external environmental
factors in structured from do develop a suitable pattern of relationships.
• Guides Strategist in Strategy Identification where he can think of overall
position of the organization and thus identify the major purpose of the
strategy under focus.
• Helps in crafting Business Models that will allow company to gain a
competitive advantage in its industry sector. This leads to increased
profitability, and maximizes company’s survival turbulent environment.
TOWSMatrix: By Heinz Weihrich
He compared strength and weaknesses of organization with that of market opportunities and threats
thus giving manager multiple strategic choices that the outcome demands.
PortfolioAnalysis
• Portfolio analysis has been devised to help associations bridge the gap
between strategy formulation and strategy implementation.
• Portfolio analysis is a systematic way to analyze the products and services
that make up an association's business portfolio.
• Portfolio analysis helps you decide which of these products and services
should be emphasized and which should be phased out, based on objective
criteria.
• portfolio analysis should be regarded as a disciplined and organized way of
thinking about asset allocation. It is only a subjective tool, however, and is
not a substitute for the ultimate professional judgment of the responsible
decision-makers.
Strategic BusinessUnit (SBU)
• The strategic business unit (SBU) is an adaptation of the divisional structure
whereby various divisions or parts of divisions are grouped together based on
some common strategic elements, usually linked to distinct product/market
differences .
• Strategic business units are absolutely essential for multi product
organizations. These business units are basically known as profit centres. They
are focused towards a set of products and are responsible for each and every
decision / strategy to be taken for that particular set of products.
• To be identified an SBU an entity should be a separate identifiable business
• Have a distinct mission
• Have its own competitors
• Have its own executive group with profit responsibility
Strategic BusinessUnit (SBU)
• Large companies normally manage quite different businesses
each requiring its own strategy General Electronics classified
its businesses into 49 strategic business units SBUs
• SBU has three characteristics
• It is a single business or collection of related businesses
that can be planned separately from the rest of the company
• It has its own set of competitors
• It has a manager who is responsible for strategic planning and
profit performance and who controls most of the factors affecting profit
• The purpose of identifying the company s strategic business units is to develop se
parate strategic and assign appropriate funding
• And helps the development of business level strategies since
these may need to vary from one SBU to another
ExperienceCurve
• It is similar to a learning curve which explains the efficiency increases gained by
workers through repetitive productive work.
• Unit costs decline as firms accumulates experience in terms of cumulative volume
of production. Costs characteristically decline by 20-30% in real terms each time
accumulated experience doubles. This means that when inflation is factored
out, costs should always decline. The decline is fast if growth is fast and slow if
growth is slow.
• Experience curve results in variety of factors such as learning effects, economies of
scale, product redesign, and technological improvement in production.
• Experience curve is considered a barrier for new firms contemplating entry in an
industry. It is also used to build market share and discourage competition.
ExperienceCurve
ProductLife Cycle
ProductLife Cycle
PLC can be used to diagnose portfolio of products in order to establish the stage
at which each of them exists. The main stages of the product life cycle are:
• Introduction – researching, developing and then launching the product, slow
sales growth. Expansion is feasible alternative
• Growth – when sales are increasing at their fastest rate and there is rapid market
acceptance. Expansion is feasible alternative
• Maturity – sales are near their highest, but the rate of growth is slowing
down, e.g. new competitors in market or saturation. Source of cash for
investment
• Decline – final stage of the cycle, when sales begin to fall or there is sharp
downward drift. Selective Harvesting, Retrenchment
ProductLife Cycle
BostonConsultingGroup(BCG) Matrix
• The BCG Matrix is based on product life cycle theory that can be used to
determine what priorities should be given in product portfolio of a business
unit. According to this technique, businesses or products are classified as
low or high performers depending upon their market growth rate and
relative market share.
• Market share is the percentage of total market that is being serviced by your
company measured either in revenue terms or unit volume terms.
Relative Market Share = Business Unit Sales this Year / Leading Rival Sales this Year
• Market growth is used as a measure of market attractiveness
MGR = Individual Sales this Year – Individual Sales Last Year / Individual Sales Last
Year
BCGMatrix
• The Boston Matrix assumes that if you enjoy a high market share you will be
making money. (This assumption is based on the idea that you will have been in
the market long enough to have learned how to be profitable, and will be
enjoying scale economies that give you an advantage). The question it asks is,
"Should you be investing additional resources into a particular product line just
because it is making you money?" The answer is, "not necessarily."
• This is where market growth comes into play. Market growth is used as a
measure of a market's attractiveness. Markets experiencing high growth are
ones where the total market is expanding, meaning that it’s relatively easy for
businesses to grow their profits, even if their market share remains stable.
• By contrast, competition in low growth markets is often bitter, and while you
might have high market share now, it may be hard to retain that market share
without aggressive discounting. This makes low growth markets less attractive.
BCGMatrix
• The Boston Matrix categorizes opportunities into four groups, shown on
axes of Market Growth and Market Share:
Stars (High Growth– High Market Share)
• The business has high market share compared to competitors and it is doing
business in high-growth market. This business is a market leader. Successful
Question Marks will grow their business and capture more market share
and will hopefully become Stars (move from the Question Marks quadrant
to the Stars quadrant).
• Successful and competitive organizations have at least one star business
unit or product. Stars have to improve their business continuously in order
to keep their position in the marketplace. As long as this market is growing
new question marks will try to capture new business.
• Invest for sales growth and market share. Use cash from Cash Cows to
support required investments.
QuestionMarks(High Growth–LowMarketShare)
• The business unit has low market share compared to competitors, however
it is doing business in high-growth market. Most of the new businesses start
in this quadrant. There are well established businesses in this market and
new businesses try to grow and capture more market share. This market is
growing and there are opportunities for new businesses. At the same time
there is risk involved with investing in this business – because of that these
businesses are called question marks. Question Marks have to develop and
grow by investing and continuously improving their business.
• Grow sales by increasing market share. Use cash from Cash Cows to support
required investments.
COWS– (LowGrowth– High Market Share)
• The market is not very attractive – low market growth rate, however the
business has high market share compared to competitors. This business
generates a lot of cash and helps the organization invest in other
businesses.
• Since the market does not attract new players, this business does not need
substantial investments to keep the market share. Cash Cows have to
protect and keep the market share and maximize cash flow.
• Maintain the strong market position and defend your market share. Take
advantage of sales volume and leverage the size of operations. Support
other businesses.
DOGS– (Low Growth– LowMarket Share)
• This business has low market share and operates in low-growth market. It is
unlikely that this business is very profitable – more likely this business is a
loser. Such a business needs consideration and new strategy development.
Potential strategies are withdrawal, selling the business, repositioning the
current business, and operating cost reduction.
• Optimize your current operations. Get rid of all non value added activities
and features. Reposition your offering to generate positive cash flow or sell
this business.
Limitationsof BCG Matrix
• The BCG Matrix produces a framework for allocating resources among different
business units and makes it possible to compare many business units at a glance.
• BCG matrix classifies businesses as low and high, but generally businesses can be
medium also. Thus, the true nature of business may not be reflected.
• Market is not clearly defined in this model.
• High market share does not always leads to high profits. There are high costs also
involved with high market share.
• Growth rate and relative market share are not the only indicators of profitability.
This model ignores and overlooks other indicators of profitability.
• At times, dogs may help other businesses in gaining competitive advantage. They
can earn even more than cash cows sometimes.
• This four-celled approach is considered as to be too simplistic.
AnsoffProductMarket GrowthMatrix
• The Ansoff Growth matrix is a tool that helps businesses decide their product and
market growth strategy. Sometimes called the Product/Market Expansion Grid, the
Ansoff Matrix shows four ways that businesses can grow, and it can help you think
through the risks associated with each option.
• Ansoff’s product/market growth matrix suggests that a business’ attempts to grow
depend on whether it markets new or existing products in new or existing
markets.
• Imagine a square divided into four quadrants representing your four growth
choices, which include selling…
• Existing products to existing customers
• New products to existing customers
• Existing products to new markets
• New products to new markets
AnsoffMatrix
MarketPenetration
• Market penetration is the name given to a growth strategy where the business focuses on selling
existing products into existing markets. Market penetration seeks to achieve four main objectives:
• Maintain or increase the market share of current products – this can be achieved by a
combination of competitive pricing strategies, advertising, sales promotion and perhaps more
resources dedicated to personal selling
• Secure dominance of growth markets
• Restructure a mature market by driving out competitors; this would require a much more
aggressive promotional campaign, supported by a pricing strategy designed to make the market
unattractive for competitors
• Increase usage by existing customers – for example by introducing loyalty schemes. A market
penetration marketing strategy is very much about “business as usual”. The business is focusing
on markets and products it knows well. It is likely to have good information on competitors and
on customer needs. It is unlikely, therefore, that this strategy will require much investment in new
market research.
MarketDevelopment
• Market development is the name given to a growth strategy where the
business seeks to sell its existing products into new markets.
There are many possible ways of approaching this strategy, including:
• New geographical markets; for example exporting the product to a new
country
• New product dimensions or packaging: for example
• New distribution channels
• Different pricing policies to attract different customers or create new market
segments
ProductDevelopment
• Product development is the name given to a growth strategy where a
business aims to introduce new products into existing markets. This strategy
may require the development of new competencies and requires the
business to develop modified products which can appeal to existing
markets.
Diversification
• Diversification is the name given to the growth strategy where a business
markets new products in new markets.
• This strategy is risky: There’s often little scope for using existing expertise or
achieving economies of scale, because you are trying to sell completely
different products or services to different customers because the business is
moving into markets in which it has little or no experience.
• For a business to adopt a diversification strategy, therefore, it must have a
clear idea about what it expects to gain from the strategy and an honest
assessment of the risks.
• Its main advantage is that, should one business suffer from adverse
circumstances, the other is unlikely to be affected.
Example
• Penetration: When marketers try to sell the existing product to the existing
customers, they engage in penetration strategy. It can be achieved in multiple
ways. For example, by changing pricing, by adding minor features (new and
improved!), changing the packaging (shampoo sachets), or highlighting
alternative uses. In this commercial, we get to how Cadbury India is pushing for
chocolates to be used as small gifts instead of more traditional sweets used
during Diwali festival.
• Product Development: McDonald's introduced salads in their outlets in order to
retain its existing customers, many of whom were becoming more health
conscious. Salads are exactly opposite of what McDonald's is known for!
However, regulatory pressures, changing consumer behavior, and negative media
coverage forced them to introduce more healthy choices on the menu.
Example
• Market Development: Introducing an existing product in different markets is
perhaps one of the most used strategies to extract full benefit of a successful
product. A very common example is entering different geographical areas
nationally and internationally. I think that Apple's introduction of iPod Touch
falls into the same category. iPod Touch was a replica of iPhone except that it
couldn't make calls. Considering that iPhone couldn't make calls either
(remember AT&T issues?), iPod Touch was basically another iPhone without the
contract with AT&T. However, it just opened up a tremendous market for Apple.
• Diversification: When marketers introduce a totally new product to a
completely new market, they engage in diversification. I think that iPod was
perhaps one of the most successful diversification ever. With its launch Apple
targeted a very large customer group, very different from its traditional smaller
cult-like following.
ADLMatrix (Arthur D. Little)
• The ADL Matrix from Arthur D. Little is a portfolio management method
that is based on product life cycle thinking. The ADL approach forms a two
dimensional matrix based on stage of industry maturity
(Embryonic, Growth, Mature, and Aging) and firms competitive position as
Dominant, Strong, Favourable, Tenable and Weak), environmental
assessment and business strength assessment.
• The combination between the dimensions yields 5 (competitive position) by
4 (life cycle stages) matrix (see figure 1). The positioning in the matrix
identifies a general strategy. This assessment of the industry life cycle stage
of each business is made on the basis of:
• Business market share
• Investment
• Profitability and cashflow.
ADLMatrix (Arthur D. Little)
• The competitive position of a firm is based on the assessment of the following
criteria:
• Dominant: This is a comparatively rare and typically short-lived. In many cases is either to a
monopoly or a strong and protected technology leadership.
• Strong: Market share is strong and stable, regardless of competitors. The firm has a
considerable degree of freedom over its choice of strategies and is often able to act
without its market position being unduly threatened by its competitors.
• Favourable: Business line enjoys competitive advantages in certain segments of market.
However there are many rivals, and no clear leader among stronger rivals. Results in the
market leaders a reasonable degree of freedom.
• Tenable: Position in overall market is small or niche, either geographical or defined by
product. Competitors are getting stronger.
• Weak: Continuous loss of market share. Business line is too small to maintain profitability.
ADLMatrix: The CompetitivePosition
• The industry maturity is based on the assessment of the following criteria:
• Embryonic: Introduction stage characterized by rapid market growth and
very little competition.
• Growth: Market continues to strengthen and sales increase.
• Mature: Market is stable, there's a well established customer base and
alot of competition.
• Aging: Demand decreases and companies start to abandoning the
market.
ADLMatrix: IndustryMaturity Stage
ADLMatrix: Limitations
• There is no standard length of life cycles.
• Determining the current industry life cycle phase is awkward.
• Competitors may influence the length of the life cycles.
General Electric (GE)Matrix
• GE Matrix or McKinsey Matrix is a strategic tool for portfolio analysis. It is
similar to the BCG Matrix and actually the GE / McKinsey Matrix is an
extension of the BCG Matrix - multifactor portfolio analysis tool.
• The GE / McKinsey Matrix is divided into nine cells - nine alternatives for
positioning of any SBU or product offering. Based on the strength of the
business and its market attractiveness each SBU will have a different
position in the matrix. Further, the market size and the current sales will
distinguish each SBU. Based on clear understanding of all of these factors
decision makers are able to develop effective strategies.
• The nine cells in the matrix can be grouped into three major segments:
TheGeneral Electric Model (GEModel)
Segment1
• This is the best segment. The business is strong and the
market is attractive. The company should allocate resources in
this business and focus on growing the business and increase
market share.
Segment2
• The business is either strong but the market is not attractive
or the market is strong and the business is not strong enough
to pursue potential opportunities. Decision makers should
make judgment on how to further deal with these SBUs. Some
of them may consume to much resources and are not
promising while others may need additional resources and
better strategy for growth.
Segment3
• This is the worst segment. Businesses in this segment are
weak and their market is not attractive. Decision makers
should consider either repositioning these SBUs into a
different market segment, develop better cost-effective
offering, or get rid of these SBUs and invest the resources into
more promising and attractive SBUs.
Factorsthat Affect Market Attractiveness
Whilst any assessment of market attractiveness is necessarily subjective, there
are several factors which can help determine attractiveness. These are listed
below:
• Market Size
• Market growth
• Market profitability
• Pricing trends
• Competitive intensity / rivalry
• Overall risk of returns in the industry
• Opportunity to differentiate products and services
• Segmentation
• Distribution structure (e.g. retail, direct, wholesale
Factorsthat Affect CompetitiveStrength
Whilst any assessment of Competitive Strength is necessarily subjective, there
are several factors which can help determine Competitive Strength. These are
listed below:
• Strength of assets and competencies
• Relative brand strength
• Market share
• Customer loyalty
• Relative cost position (cost structure compared with competitors)
• Distribution strength
• Record of technological or other innovation
• Access to financial and other investment resources
Strategic Analysis

Weitere ähnliche Inhalte

Was ist angesagt?

Strategic formulation in Strategic management
Strategic formulation in Strategic managementStrategic formulation in Strategic management
Strategic formulation in Strategic managementYamini Kahaliya
 
Strategy implementation and control
Strategy implementation and controlStrategy implementation and control
Strategy implementation and controlNawal Badu
 
Environmental scanning-ppt
Environmental scanning-pptEnvironmental scanning-ppt
Environmental scanning-ppt16119843
 
Strategy Formulation & Implementation
Strategy Formulation & ImplementationStrategy Formulation & Implementation
Strategy Formulation & ImplementationDr. Vickram Aadityaa
 
Chapter 1 the nature of strategic management
Chapter 1   the nature of strategic managementChapter 1   the nature of strategic management
Chapter 1 the nature of strategic managementMervyn Maico Aldana
 
Chapter-3 External Assessment in Strategic Management
Chapter-3 External Assessment in Strategic ManagementChapter-3 External Assessment in Strategic Management
Chapter-3 External Assessment in Strategic ManagementCabdulaahi Sulayman
 
Strategic management process
Strategic management processStrategic management process
Strategic management processbwire sedrick
 
Strategic management
Strategic managementStrategic management
Strategic managementapverma01
 
27. Nature Of Strategic Management
27. Nature Of Strategic Management27. Nature Of Strategic Management
27. Nature Of Strategic ManagementEarl Stevens
 
environmental scanning
environmental scanningenvironmental scanning
environmental scanningvidya vikraman
 
External Analysis Strategic Management Ljmu
External Analysis   Strategic Management LjmuExternal Analysis   Strategic Management Ljmu
External Analysis Strategic Management Ljmusnoozed
 
strategy implementation
strategy implementationstrategy implementation
strategy implementationArun Kumar
 
Chapter 8 strategic evaluation and control
Chapter 8 strategic evaluation and controlChapter 8 strategic evaluation and control
Chapter 8 strategic evaluation and controlRoshan Pant
 
Strategic management
Strategic managementStrategic management
Strategic managementHasnaa Hassan
 

Was ist angesagt? (20)

Strategic formulation in Strategic management
Strategic formulation in Strategic managementStrategic formulation in Strategic management
Strategic formulation in Strategic management
 
Strategy implementation and control
Strategy implementation and controlStrategy implementation and control
Strategy implementation and control
 
Environmental scanning-ppt
Environmental scanning-pptEnvironmental scanning-ppt
Environmental scanning-ppt
 
Strategy Formulation & Implementation
Strategy Formulation & ImplementationStrategy Formulation & Implementation
Strategy Formulation & Implementation
 
The Strategic Management Process
The Strategic Management ProcessThe Strategic Management Process
The Strategic Management Process
 
Chapter 1 the nature of strategic management
Chapter 1   the nature of strategic managementChapter 1   the nature of strategic management
Chapter 1 the nature of strategic management
 
Chapter-3 External Assessment in Strategic Management
Chapter-3 External Assessment in Strategic ManagementChapter-3 External Assessment in Strategic Management
Chapter-3 External Assessment in Strategic Management
 
Chapter 7 implementing strategies
Chapter 7 implementing strategiesChapter 7 implementing strategies
Chapter 7 implementing strategies
 
Environmental scanning
Environmental scanningEnvironmental scanning
Environmental scanning
 
Strategic management process
Strategic management processStrategic management process
Strategic management process
 
Strategic management
Strategic managementStrategic management
Strategic management
 
27. Nature Of Strategic Management
27. Nature Of Strategic Management27. Nature Of Strategic Management
27. Nature Of Strategic Management
 
Presentation on Strategy and structure
 Presentation on Strategy and structure Presentation on Strategy and structure
Presentation on Strategy and structure
 
STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
 
strategic control
strategic controlstrategic control
strategic control
 
environmental scanning
environmental scanningenvironmental scanning
environmental scanning
 
External Analysis Strategic Management Ljmu
External Analysis   Strategic Management LjmuExternal Analysis   Strategic Management Ljmu
External Analysis Strategic Management Ljmu
 
strategy implementation
strategy implementationstrategy implementation
strategy implementation
 
Chapter 8 strategic evaluation and control
Chapter 8 strategic evaluation and controlChapter 8 strategic evaluation and control
Chapter 8 strategic evaluation and control
 
Strategic management
Strategic managementStrategic management
Strategic management
 

Andere mochten auch

Strategic Analysis
Strategic AnalysisStrategic Analysis
Strategic Analysisrushdajalal
 
Humss trends, networks, and critical thinking in the 21st century culture cg 1
Humss trends, networks, and critical thinking in the 21st century culture cg 1Humss trends, networks, and critical thinking in the 21st century culture cg 1
Humss trends, networks, and critical thinking in the 21st century culture cg 1Carie Justine Estrellado
 
Strategy analysis andchoice
Strategy analysis andchoiceStrategy analysis andchoice
Strategy analysis andchoiceRamil Polintan
 
Strategic choice-Strategic Management
Strategic choice-Strategic ManagementStrategic choice-Strategic Management
Strategic choice-Strategic ManagementYongley
 
How to spot trends trend watching manual 2015
How to spot trends trend watching manual 2015How to spot trends trend watching manual 2015
How to spot trends trend watching manual 2015Awang Dito
 
Trend Spotting: Can Being "Trendy" Help Grow Your Organization
Trend Spotting: Can Being "Trendy" Help Grow Your OrganizationTrend Spotting: Can Being "Trendy" Help Grow Your Organization
Trend Spotting: Can Being "Trendy" Help Grow Your Organizationaronduby
 
گونه شناسی تحلیل استراتژیک
گونه شناسی تحلیل استراتژیکگونه شناسی تحلیل استراتژیک
گونه شناسی تحلیل استراتژیکHossein Nourian, DBA
 
تحلیل استراتژیک شرکت زیمنس
تحلیل استراتژیک شرکت زیمنستحلیل استراتژیک شرکت زیمنس
تحلیل استراتژیک شرکت زیمنسshayan tavakoli
 
ELEMENTS AND CHARACTERISTICS OF TREND
ELEMENTS AND CHARACTERISTICS OF TRENDELEMENTS AND CHARACTERISTICS OF TREND
ELEMENTS AND CHARACTERISTICS OF TRENDCenthiame Belonio
 
Strategic thinking (slides)
Strategic thinking (slides)Strategic thinking (slides)
Strategic thinking (slides)Ibrahim Nor
 
Servant Leadership Principles - Fostering a Culture of Agility
Servant Leadership Principles - Fostering a Culture of AgilityServant Leadership Principles - Fostering a Culture of Agility
Servant Leadership Principles - Fostering a Culture of AgilityLen Lagestee
 
Strategic thinking
Strategic thinkingStrategic thinking
Strategic thinkingAmir NikKhah
 
Tools and Techniques of Strategic Management
Tools and Techniques of Strategic ManagementTools and Techniques of Strategic Management
Tools and Techniques of Strategic ManagementSaumya Singh
 
Strategy Analysis and Choice
Strategy Analysis and ChoiceStrategy Analysis and Choice
Strategy Analysis and ChoiceNoel Buensuceso
 
9 strategic choice ppt
9 strategic choice ppt9 strategic choice ppt
9 strategic choice pptbwire sedrick
 
Trends and their meaning
Trends and their meaningTrends and their meaning
Trends and their meaningKai Platschke
 
Social networking ppt
Social networking pptSocial networking ppt
Social networking pptpatricia
 

Andere mochten auch (20)

Strategic Analysis
Strategic AnalysisStrategic Analysis
Strategic Analysis
 
Humss trends, networks, and critical thinking in the 21st century culture cg 1
Humss trends, networks, and critical thinking in the 21st century culture cg 1Humss trends, networks, and critical thinking in the 21st century culture cg 1
Humss trends, networks, and critical thinking in the 21st century culture cg 1
 
Strategy analysis andchoice
Strategy analysis andchoiceStrategy analysis andchoice
Strategy analysis andchoice
 
Strategic choice-Strategic Management
Strategic choice-Strategic ManagementStrategic choice-Strategic Management
Strategic choice-Strategic Management
 
How to spot trends trend watching manual 2015
How to spot trends trend watching manual 2015How to spot trends trend watching manual 2015
How to spot trends trend watching manual 2015
 
Trend Spotting: Can Being "Trendy" Help Grow Your Organization
Trend Spotting: Can Being "Trendy" Help Grow Your OrganizationTrend Spotting: Can Being "Trendy" Help Grow Your Organization
Trend Spotting: Can Being "Trendy" Help Grow Your Organization
 
Strategy analyis and chioce
Strategy analyis and chioceStrategy analyis and chioce
Strategy analyis and chioce
 
گونه شناسی تحلیل استراتژیک
گونه شناسی تحلیل استراتژیکگونه شناسی تحلیل استراتژیک
گونه شناسی تحلیل استراتژیک
 
تحلیل استراتژیک شرکت زیمنس
تحلیل استراتژیک شرکت زیمنستحلیل استراتژیک شرکت زیمنس
تحلیل استراتژیک شرکت زیمنس
 
ELEMENTS AND CHARACTERISTICS OF TREND
ELEMENTS AND CHARACTERISTICS OF TRENDELEMENTS AND CHARACTERISTICS OF TREND
ELEMENTS AND CHARACTERISTICS OF TREND
 
Strategic thinking (slides)
Strategic thinking (slides)Strategic thinking (slides)
Strategic thinking (slides)
 
Strategic choice
Strategic choiceStrategic choice
Strategic choice
 
Servant Leadership Principles - Fostering a Culture of Agility
Servant Leadership Principles - Fostering a Culture of AgilityServant Leadership Principles - Fostering a Culture of Agility
Servant Leadership Principles - Fostering a Culture of Agility
 
Strategic thinking
Strategic thinkingStrategic thinking
Strategic thinking
 
Tools and Techniques of Strategic Management
Tools and Techniques of Strategic ManagementTools and Techniques of Strategic Management
Tools and Techniques of Strategic Management
 
Strategy Analysis and Choice
Strategy Analysis and ChoiceStrategy Analysis and Choice
Strategy Analysis and Choice
 
9 strategic choice ppt
9 strategic choice ppt9 strategic choice ppt
9 strategic choice ppt
 
Trends and their meaning
Trends and their meaningTrends and their meaning
Trends and their meaning
 
Process of strategic choice
Process of strategic choiceProcess of strategic choice
Process of strategic choice
 
Social networking ppt
Social networking pptSocial networking ppt
Social networking ppt
 

Ähnlich wie Strategic Analysis

Lesson 4 OMTE 001 Environments And Strategic Management.pptx
Lesson 4 OMTE 001 Environments And Strategic Management.pptxLesson 4 OMTE 001 Environments And Strategic Management.pptx
Lesson 4 OMTE 001 Environments And Strategic Management.pptxRodantesRivera3
 
Chapter 8management10theditionbyrobbinsandcoulter-130822070036-phpapp02 - vis...
Chapter 8management10theditionbyrobbinsandcoulter-130822070036-phpapp02 - vis...Chapter 8management10theditionbyrobbinsandcoulter-130822070036-phpapp02 - vis...
Chapter 8management10theditionbyrobbinsandcoulter-130822070036-phpapp02 - vis...SoftSol
 
Strategic-analysis-and-decision-making-a-strategic-management-model.pdf
Strategic-analysis-and-decision-making-a-strategic-management-model.pdfStrategic-analysis-and-decision-making-a-strategic-management-model.pdf
Strategic-analysis-and-decision-making-a-strategic-management-model.pdfPiaPea1
 
Environmental analysis and techniques
Environmental analysis and techniquesEnvironmental analysis and techniques
Environmental analysis and techniquesBabu Babu
 
Global marketing Plan External & Internal Analysis ppt
Global marketing Plan External & Internal Analysis pptGlobal marketing Plan External & Internal Analysis ppt
Global marketing Plan External & Internal Analysis pptMoriba Touray
 
Touray moriba ba522globalmarketing_plan_final_ppt
Touray moriba ba522globalmarketing_plan_final_pptTouray moriba ba522globalmarketing_plan_final_ppt
Touray moriba ba522globalmarketing_plan_final_pptMoriba Touray
 
Chapter 02 strategy analysis
Chapter 02 strategy analysisChapter 02 strategy analysis
Chapter 02 strategy analysisAl Sabbir
 
SWOT Analysis, BCG Matrix, GE Matrix , Business level strategies
SWOT Analysis, BCG Matrix, GE Matrix , Business level strategiesSWOT Analysis, BCG Matrix, GE Matrix , Business level strategies
SWOT Analysis, BCG Matrix, GE Matrix , Business level strategieseyad-gh
 
Environment analysis exercise.pptx
Environment analysis exercise.pptxEnvironment analysis exercise.pptx
Environment analysis exercise.pptxpranalpatilPranal
 
Competitor analysis presentation
Competitor analysis presentationCompetitor analysis presentation
Competitor analysis presentationSharon Lindelwa
 
Managing strategically
Managing strategicallyManaging strategically
Managing strategicallynananavas
 
Strategic management
Strategic managementStrategic management
Strategic managementOnline
 
Strategic Management
Strategic ManagementStrategic Management
Strategic ManagementAli Shah
 
L 5 external environment
L 5 external environmentL 5 external environment
L 5 external environmentSudhir Upadhyay
 
Business Environment and Analysis.pdf
Business Environment and Analysis.pdfBusiness Environment and Analysis.pdf
Business Environment and Analysis.pdfVirdha Puspita
 
Fundamental analysis and technical analysis
Fundamental analysis and technical analysisFundamental analysis and technical analysis
Fundamental analysis and technical analysisMohammed Umair
 

Ähnlich wie Strategic Analysis (20)

Lesson 4 OMTE 001 Environments And Strategic Management.pptx
Lesson 4 OMTE 001 Environments And Strategic Management.pptxLesson 4 OMTE 001 Environments And Strategic Management.pptx
Lesson 4 OMTE 001 Environments And Strategic Management.pptx
 
Strategic management unit 2 environmental analysis & diagnosis
Strategic management unit 2 environmental analysis & diagnosisStrategic management unit 2 environmental analysis & diagnosis
Strategic management unit 2 environmental analysis & diagnosis
 
Chapter 8management10theditionbyrobbinsandcoulter-130822070036-phpapp02 - vis...
Chapter 8management10theditionbyrobbinsandcoulter-130822070036-phpapp02 - vis...Chapter 8management10theditionbyrobbinsandcoulter-130822070036-phpapp02 - vis...
Chapter 8management10theditionbyrobbinsandcoulter-130822070036-phpapp02 - vis...
 
Strategic-analysis-and-decision-making-a-strategic-management-model.pdf
Strategic-analysis-and-decision-making-a-strategic-management-model.pdfStrategic-analysis-and-decision-making-a-strategic-management-model.pdf
Strategic-analysis-and-decision-making-a-strategic-management-model.pdf
 
Environmental analysis and techniques
Environmental analysis and techniquesEnvironmental analysis and techniques
Environmental analysis and techniques
 
Strategic analysis.ppt
Strategic analysis.pptStrategic analysis.ppt
Strategic analysis.ppt
 
Global marketing Plan External & Internal Analysis ppt
Global marketing Plan External & Internal Analysis pptGlobal marketing Plan External & Internal Analysis ppt
Global marketing Plan External & Internal Analysis ppt
 
Touray moriba ba522globalmarketing_plan_final_ppt
Touray moriba ba522globalmarketing_plan_final_pptTouray moriba ba522globalmarketing_plan_final_ppt
Touray moriba ba522globalmarketing_plan_final_ppt
 
Chapter 02 strategy analysis
Chapter 02 strategy analysisChapter 02 strategy analysis
Chapter 02 strategy analysis
 
SWOT Analysis, BCG Matrix, GE Matrix , Business level strategies
SWOT Analysis, BCG Matrix, GE Matrix , Business level strategiesSWOT Analysis, BCG Matrix, GE Matrix , Business level strategies
SWOT Analysis, BCG Matrix, GE Matrix , Business level strategies
 
Mis presentation
Mis presentationMis presentation
Mis presentation
 
Environment analysis exercise.pptx
Environment analysis exercise.pptxEnvironment analysis exercise.pptx
Environment analysis exercise.pptx
 
Competitor analysis presentation
Competitor analysis presentationCompetitor analysis presentation
Competitor analysis presentation
 
Managing strategically
Managing strategicallyManaging strategically
Managing strategically
 
Strategic management
Strategic managementStrategic management
Strategic management
 
Strategic Management
Strategic ManagementStrategic Management
Strategic Management
 
L 5 external environment
L 5 external environmentL 5 external environment
L 5 external environment
 
Business Environment and Analysis.pdf
Business Environment and Analysis.pdfBusiness Environment and Analysis.pdf
Business Environment and Analysis.pdf
 
Fundamental analysis and technical analysis
Fundamental analysis and technical analysisFundamental analysis and technical analysis
Fundamental analysis and technical analysis
 
Opportunites and Threat Analysis
Opportunites and Threat AnalysisOpportunites and Threat Analysis
Opportunites and Threat Analysis
 

Mehr von Prashant Mehta

Gases physical properties
Gases physical propertiesGases physical properties
Gases physical propertiesPrashant Mehta
 
New education policy 2020
New education policy 2020New education policy 2020
New education policy 2020Prashant Mehta
 
India's New Education Policy 2020
India's New Education Policy 2020 India's New Education Policy 2020
India's New Education Policy 2020 Prashant Mehta
 
Human induced climate change
Human induced climate changeHuman induced climate change
Human induced climate changePrashant Mehta
 
Opportunities in Indian Healthcare Sector
Opportunities in Indian Healthcare SectorOpportunities in Indian Healthcare Sector
Opportunities in Indian Healthcare SectorPrashant Mehta
 
Healthcare Waste Trail in India
Healthcare Waste Trail in IndiaHealthcare Waste Trail in India
Healthcare Waste Trail in IndiaPrashant Mehta
 
Healthcare Waste and Judicial Intervention by Indian Courts
Healthcare Waste and Judicial Intervention by Indian CourtsHealthcare Waste and Judicial Intervention by Indian Courts
Healthcare Waste and Judicial Intervention by Indian CourtsPrashant Mehta
 
Challenges in Indian Healthcare Sector
Challenges in Indian Healthcare SectorChallenges in Indian Healthcare Sector
Challenges in Indian Healthcare SectorPrashant Mehta
 
Internal security and forensic science
Internal security and forensic scienceInternal security and forensic science
Internal security and forensic sciencePrashant Mehta
 

Mehr von Prashant Mehta (20)

Elements facts
Elements factsElements facts
Elements facts
 
Gases physical properties
Gases physical propertiesGases physical properties
Gases physical properties
 
Communicable Diseases
Communicable DiseasesCommunicable Diseases
Communicable Diseases
 
Industrial processes
Industrial processesIndustrial processes
Industrial processes
 
Alloys
AlloysAlloys
Alloys
 
New education policy 2020
New education policy 2020New education policy 2020
New education policy 2020
 
India's New Education Policy 2020
India's New Education Policy 2020 India's New Education Policy 2020
India's New Education Policy 2020
 
Green house effect
Green house effectGreen house effect
Green house effect
 
Human induced climate change
Human induced climate changeHuman induced climate change
Human induced climate change
 
Smog
SmogSmog
Smog
 
Acid rain
Acid rainAcid rain
Acid rain
 
Healthcare Wastes
Healthcare WastesHealthcare Wastes
Healthcare Wastes
 
Opportunities in Indian Healthcare Sector
Opportunities in Indian Healthcare SectorOpportunities in Indian Healthcare Sector
Opportunities in Indian Healthcare Sector
 
Healthcare Waste Trail in India
Healthcare Waste Trail in IndiaHealthcare Waste Trail in India
Healthcare Waste Trail in India
 
Healthcare Waste and Judicial Intervention by Indian Courts
Healthcare Waste and Judicial Intervention by Indian CourtsHealthcare Waste and Judicial Intervention by Indian Courts
Healthcare Waste and Judicial Intervention by Indian Courts
 
Challenges in Indian Healthcare Sector
Challenges in Indian Healthcare SectorChallenges in Indian Healthcare Sector
Challenges in Indian Healthcare Sector
 
Internal security and forensic science
Internal security and forensic scienceInternal security and forensic science
Internal security and forensic science
 
Atmospheric Oxidants
Atmospheric OxidantsAtmospheric Oxidants
Atmospheric Oxidants
 
Atmosphere
AtmosphereAtmosphere
Atmosphere
 
Global Warming
Global WarmingGlobal Warming
Global Warming
 

Kürzlich hochgeladen

Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...IMARC Group
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfJohnCarloValencia4
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003believeminhh
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxJemalSeid25
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Winbusinessin
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...AustraliaChapterIIBA
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato pptElizangelaSoaresdaCo
 
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfChicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfSourav Sikder
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Onlinelng ths
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfHajeJanKamps
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursKaiNexus
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhangmcgroupjeya
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHelene Heckrotte
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfHajeJanKamps
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...Khaled Al Awadi
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfAnhNguyen97152
 

Kürzlich hochgeladen (20)

Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptx
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato ppt
 
WAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdfWAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdf
 
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfChicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Online
 
Investment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV IndustriesInvestment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV Industries
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, Ours
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhang
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdf
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
 

Strategic Analysis

  • 2. STRATEGICANALYSIS Introduction Strategic Analysis Situational Analysis The Methods of Industry and Competitive Analysis SWOT Analysis TOWS Matrix Portfolio Analysis
  • 4. Strategic Analysis “Developing a theoretically informed understanding of the environment in which an organisation is operating, together with an understanding of the organisation’s interaction with its environment in order to improve organisational efficiency and effectiveness by increasing the organisation’s capacity to deploy and redeploy its resources intelligently”. The two most important situational considerations are: • Industry and Competitive Conditions • Company’s own competitive capabilities, resources, internal strength, weakness, and market position. Understanding companies environment (both internal and external) will create a winning strategy or else company will loose its competitive advantage and companies performance will be affected.
  • 5. Issuesto Considerfor Strategic Analysis • Strategy evolves over a period of time: It involves study of possible implications of small routine decisions taken over a extended period of time and these decisions must be balanced. • Balance: Strategic analysis involves workable balance between diverse and conflicting considerations. For example matching internal potential of firm with environmental opportunities. Constraint forces vary in nature, degree, magnitude, and importance. These factors can be managed to certain extent. • Risk: As competitive markets grows, liberalization, globalization, technological advancements, inter country relations pose risks at varying degree. Thus strategic analysis should identify potential imbalance / risk and assess their consequences.
  • 6. Strategic RiskAnalysis Errors in Interpreting the environment cause strategic failure Changes in the environment lead to obsolescence of strategy Organizational capacity is unable to cope up with strategic demand Inconsistencies with the strategy are developed on account of changes in internal capacities and preferences Long TermShort Term TIME ExternalInternal StrategicRisk
  • 7. SituationalAnalysis •External Environment •Internal Environment Strategic Thinking •Where Company Needs to Go Form Strategic Vision •Promising Strategic Option for the Company Identify •The Best Strategy and Business Model for the Company Select • Product Situation – My current products • Competitive Situation – Analyze the main competitors • Distribution Situation – Review your distribution system • Environmental Factors – Analyze the external and internal environment • Opportunity and Issues Analysis – SWOT analysis
  • 8. FrameWorkof Strategic Analysis External Analysis Customer Analysis Competitors Analysis Market Analysis Environmental Analysis (PEST) Internal Analysis Performance Analysis Determinates Analysis (Past and Current Strategies, Capabilities and Constraints) Opportunities, Threats, Trends, and Strategic Uncertainties Strategic Strengths, Weaknesses, Problems, Constraints, and Weaknesses Strategy Identification and Selection Identify Strategic Alternatives (Functional Area, Assets, Synergies) Select Strategy Implement Operating Plan Review strategy
  • 9. Methodsof Industryand CompetitiveAnalysis Industry and Competitive analysis aims at developing insight into several issues like industry traits, intensity of competition, drivers of industry change, market position, and strategy of rival companies, industry profit outlook etc. It is thus thinking strategically about investing into some company. The issues to look into are: • Dominant Economic Features of Industry • Nature and Strength of Competition • Triggers of Change • Identify the Companies that are in Strongest / Weakest Positions • Likely Strategic Moves of Rivals • Key factors of Competitive Success • Prospects and Financial Attractiveness of Industry
  • 10. DominantEconomicFeaturesof the Industry • Market size and growth rate/stage in life cycle • Scope of competitive rivalry • Number of competitors and relative sizes • Prevalence of backward/forward integration • Entry/exit barriers • Nature and pace of technological change • Product and customer characteristics • Scale economies and experience curve effects • Capacity utilization and capital requirements • Industry profitability
  • 11. Natureand Strength of Competition • Moderate • Fierce • Cutthroat • Best Price • Product Quality • Product Reliability (washer and dryers, PC’s) • Service Quickness and Reliability (Fast foods, online shopping) • Product Features and Performance (Cars, cameras) • Brand Reputation (Beer, soft drinks) • Cooperation with Suppliers • Cooperation with Customers • Cooperation with other Competitors
  • 12. Triggers of Change • Industries change because forces are driving industry participants to alter their actions. Driving forces are the major underlying causes of changing industry and competitive conditions. • Identify those forces likely to exert greatest influence over next 1 - 3 years, Usually no more than 3 – 4 factors qualify as real drivers of change, Assess impact. What difference will the forces make – favorable / unfavorable? • Internet and e-commerce opportunities (Increasing globalization of industry) • Changes in long-term industry growth rate • Changes in who buys the product and how they use it • Product innovation - Technological change/process innovation • Marketing innovation • Entry or exit of major firms • Diffusion of technical knowledge and Changes in cost and efficiency • Market shift from standardized to differentiated products (or vice versa) • Regulatory policies / government legislation / Changing societal concerns, attitudes, and lifestyles • Changes in degree of uncertainty and risk
  • 13. IdentifyingCo. Strongest / Weakest Points • One technique for revealing the different competitive positions of industry rivals is strategic group mapping. A strategic group consists of those rivals with similar competitive approaches in an industry. • Firms in same strategic group have two or more competitive characteristics in common • Sell in same price/quality range • Cover same geographic areas • Be vertically integrated to same degree • Have comparable product line breadth • Emphasize same types of distribution Channels • Offer buyers similar services • Use identical technological approaches
  • 14. ProcedureforConstructingaStrategicGroupMap • STEP 1: Identify competitive characteristics that differentiate firms in an industry from one another • STEP 2: Plot firms on a two-variable map using pairs of these differentiating characteristics • STEP 3: Assign firms that fall in about the same strategy space to same strategic group • STEP 4: Draw circles around each group, making circles proportional to size of group’s respective share of total industry sales Guidelines for Strategic group Maps • Variables selected as axes should not be highly correlated, and should expose big differences in how rivals compete • Variables do not have to be either quantitative or continuous • Drawing sizes of circles proportional to combined sales of firms in each strategic group allows map to reflect relative sizes of each strategic group • If more than two good competitive variables can be used, several maps can be drawn
  • 15. LikelyStrategic Movesof Rivals • A firm’s own best strategic moves are affected by • Current strategies of competitors • Future actions of competitors • Profiling key rivals involves gathering competitive intelligence about their • Current strategies • Most recent moves • Resource strengths and weaknesses • Announced plans
  • 16. PredictingRivals’Next MovesInvolves • Analyzing their current competitive positions • Examining public pronouncements about what it will take to be successful in industry • Gathering information from grapevine about current activities and potential changes • Studying past actions and leadership • Determining who has flexibility to make major strategic changes and who is locked into pursuing same basic strategy
  • 17. Key Factorsof CompetitiveSuccess • Competitive elements most affecting every industry member’s ability to prosper • Specific strategy elements • Product attributes • Resources • Competencies • Competitive capabilities • Competitive Success Factor spell the difference between • Profit and loss • Competitive success or failure
  • 19. Prospectsof FinancialAttractivenessof Industry • Things to Consider • Industry’s market size and growth potential • Whether competitive conditions are conducive to • Rising/falling industry profitability • Will competitive forces become stronger or weaker • Whether industry will be favorably or unfavorably • Impacted by driving forces • Potential for entry/exit of major firms • Stability/dependability of demand • Severity of problems facing industry as a whole • Degree of risk and uncertainty in industry’s future
  • 20. SWOTAnalysis • Generation of Series of Strategic Alternatives • Strength is inherent capability of an organization helps to gain strategic advantage over competitors • Weakness is inherent limitation or constrain of an organization which creates strategic disadvantage • Opportunity is favourable condition which enables organization to strengthen its position • Threats is an unfavourable condition which results into risk, damage to organization.
  • 22. Set of Strategies • Functional Level Strategy – Directed at improving effectiveness of operations like marketing, finance etc.. • Business Level Strategy – Business overall competitive theme, including cost leadership, differentiation, focusing on particular segment etc. • Global Level Strategy – How to expand operations outside home country and global competitive advantage. • Corporate Level Strategy – Which business should we be in and how to maximize profitability in long run. • The organizational performance in market is influenced by: • Organizations correct market position, • The nature of environmental opportunities and threats • Organizational resource capability to capitalize on situations
  • 23. Significanceof SWOT Analysis • Provides Logical Framework for handling issues having bearing on business situation, generation of alternative strategies and choice of strategy. • Presents Comparative Account of both internal and external environmental factors in structured from do develop a suitable pattern of relationships. • Guides Strategist in Strategy Identification where he can think of overall position of the organization and thus identify the major purpose of the strategy under focus. • Helps in crafting Business Models that will allow company to gain a competitive advantage in its industry sector. This leads to increased profitability, and maximizes company’s survival turbulent environment.
  • 24. TOWSMatrix: By Heinz Weihrich He compared strength and weaknesses of organization with that of market opportunities and threats thus giving manager multiple strategic choices that the outcome demands.
  • 25. PortfolioAnalysis • Portfolio analysis has been devised to help associations bridge the gap between strategy formulation and strategy implementation. • Portfolio analysis is a systematic way to analyze the products and services that make up an association's business portfolio. • Portfolio analysis helps you decide which of these products and services should be emphasized and which should be phased out, based on objective criteria. • portfolio analysis should be regarded as a disciplined and organized way of thinking about asset allocation. It is only a subjective tool, however, and is not a substitute for the ultimate professional judgment of the responsible decision-makers.
  • 26. Strategic BusinessUnit (SBU) • The strategic business unit (SBU) is an adaptation of the divisional structure whereby various divisions or parts of divisions are grouped together based on some common strategic elements, usually linked to distinct product/market differences . • Strategic business units are absolutely essential for multi product organizations. These business units are basically known as profit centres. They are focused towards a set of products and are responsible for each and every decision / strategy to be taken for that particular set of products. • To be identified an SBU an entity should be a separate identifiable business • Have a distinct mission • Have its own competitors • Have its own executive group with profit responsibility
  • 27. Strategic BusinessUnit (SBU) • Large companies normally manage quite different businesses each requiring its own strategy General Electronics classified its businesses into 49 strategic business units SBUs • SBU has three characteristics • It is a single business or collection of related businesses that can be planned separately from the rest of the company • It has its own set of competitors • It has a manager who is responsible for strategic planning and profit performance and who controls most of the factors affecting profit • The purpose of identifying the company s strategic business units is to develop se parate strategic and assign appropriate funding • And helps the development of business level strategies since these may need to vary from one SBU to another
  • 28. ExperienceCurve • It is similar to a learning curve which explains the efficiency increases gained by workers through repetitive productive work. • Unit costs decline as firms accumulates experience in terms of cumulative volume of production. Costs characteristically decline by 20-30% in real terms each time accumulated experience doubles. This means that when inflation is factored out, costs should always decline. The decline is fast if growth is fast and slow if growth is slow. • Experience curve results in variety of factors such as learning effects, economies of scale, product redesign, and technological improvement in production. • Experience curve is considered a barrier for new firms contemplating entry in an industry. It is also used to build market share and discourage competition.
  • 31. ProductLife Cycle PLC can be used to diagnose portfolio of products in order to establish the stage at which each of them exists. The main stages of the product life cycle are: • Introduction – researching, developing and then launching the product, slow sales growth. Expansion is feasible alternative • Growth – when sales are increasing at their fastest rate and there is rapid market acceptance. Expansion is feasible alternative • Maturity – sales are near their highest, but the rate of growth is slowing down, e.g. new competitors in market or saturation. Source of cash for investment • Decline – final stage of the cycle, when sales begin to fall or there is sharp downward drift. Selective Harvesting, Retrenchment
  • 33. BostonConsultingGroup(BCG) Matrix • The BCG Matrix is based on product life cycle theory that can be used to determine what priorities should be given in product portfolio of a business unit. According to this technique, businesses or products are classified as low or high performers depending upon their market growth rate and relative market share. • Market share is the percentage of total market that is being serviced by your company measured either in revenue terms or unit volume terms. Relative Market Share = Business Unit Sales this Year / Leading Rival Sales this Year • Market growth is used as a measure of market attractiveness MGR = Individual Sales this Year – Individual Sales Last Year / Individual Sales Last Year
  • 34. BCGMatrix • The Boston Matrix assumes that if you enjoy a high market share you will be making money. (This assumption is based on the idea that you will have been in the market long enough to have learned how to be profitable, and will be enjoying scale economies that give you an advantage). The question it asks is, "Should you be investing additional resources into a particular product line just because it is making you money?" The answer is, "not necessarily." • This is where market growth comes into play. Market growth is used as a measure of a market's attractiveness. Markets experiencing high growth are ones where the total market is expanding, meaning that it’s relatively easy for businesses to grow their profits, even if their market share remains stable. • By contrast, competition in low growth markets is often bitter, and while you might have high market share now, it may be hard to retain that market share without aggressive discounting. This makes low growth markets less attractive.
  • 35. BCGMatrix • The Boston Matrix categorizes opportunities into four groups, shown on axes of Market Growth and Market Share:
  • 36. Stars (High Growth– High Market Share) • The business has high market share compared to competitors and it is doing business in high-growth market. This business is a market leader. Successful Question Marks will grow their business and capture more market share and will hopefully become Stars (move from the Question Marks quadrant to the Stars quadrant). • Successful and competitive organizations have at least one star business unit or product. Stars have to improve their business continuously in order to keep their position in the marketplace. As long as this market is growing new question marks will try to capture new business. • Invest for sales growth and market share. Use cash from Cash Cows to support required investments.
  • 37. QuestionMarks(High Growth–LowMarketShare) • The business unit has low market share compared to competitors, however it is doing business in high-growth market. Most of the new businesses start in this quadrant. There are well established businesses in this market and new businesses try to grow and capture more market share. This market is growing and there are opportunities for new businesses. At the same time there is risk involved with investing in this business – because of that these businesses are called question marks. Question Marks have to develop and grow by investing and continuously improving their business. • Grow sales by increasing market share. Use cash from Cash Cows to support required investments.
  • 38. COWS– (LowGrowth– High Market Share) • The market is not very attractive – low market growth rate, however the business has high market share compared to competitors. This business generates a lot of cash and helps the organization invest in other businesses. • Since the market does not attract new players, this business does not need substantial investments to keep the market share. Cash Cows have to protect and keep the market share and maximize cash flow. • Maintain the strong market position and defend your market share. Take advantage of sales volume and leverage the size of operations. Support other businesses.
  • 39. DOGS– (Low Growth– LowMarket Share) • This business has low market share and operates in low-growth market. It is unlikely that this business is very profitable – more likely this business is a loser. Such a business needs consideration and new strategy development. Potential strategies are withdrawal, selling the business, repositioning the current business, and operating cost reduction. • Optimize your current operations. Get rid of all non value added activities and features. Reposition your offering to generate positive cash flow or sell this business.
  • 40. Limitationsof BCG Matrix • The BCG Matrix produces a framework for allocating resources among different business units and makes it possible to compare many business units at a glance. • BCG matrix classifies businesses as low and high, but generally businesses can be medium also. Thus, the true nature of business may not be reflected. • Market is not clearly defined in this model. • High market share does not always leads to high profits. There are high costs also involved with high market share. • Growth rate and relative market share are not the only indicators of profitability. This model ignores and overlooks other indicators of profitability. • At times, dogs may help other businesses in gaining competitive advantage. They can earn even more than cash cows sometimes. • This four-celled approach is considered as to be too simplistic.
  • 41. AnsoffProductMarket GrowthMatrix • The Ansoff Growth matrix is a tool that helps businesses decide their product and market growth strategy. Sometimes called the Product/Market Expansion Grid, the Ansoff Matrix shows four ways that businesses can grow, and it can help you think through the risks associated with each option. • Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets. • Imagine a square divided into four quadrants representing your four growth choices, which include selling… • Existing products to existing customers • New products to existing customers • Existing products to new markets • New products to new markets
  • 43. MarketPenetration • Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets. Market penetration seeks to achieve four main objectives: • Maintain or increase the market share of current products – this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling • Secure dominance of growth markets • Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors • Increase usage by existing customers – for example by introducing loyalty schemes. A market penetration marketing strategy is very much about “business as usual”. The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research.
  • 44. MarketDevelopment • Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets. There are many possible ways of approaching this strategy, including: • New geographical markets; for example exporting the product to a new country • New product dimensions or packaging: for example • New distribution channels • Different pricing policies to attract different customers or create new market segments
  • 45. ProductDevelopment • Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets.
  • 46. Diversification • Diversification is the name given to the growth strategy where a business markets new products in new markets. • This strategy is risky: There’s often little scope for using existing expertise or achieving economies of scale, because you are trying to sell completely different products or services to different customers because the business is moving into markets in which it has little or no experience. • For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks. • Its main advantage is that, should one business suffer from adverse circumstances, the other is unlikely to be affected.
  • 47. Example • Penetration: When marketers try to sell the existing product to the existing customers, they engage in penetration strategy. It can be achieved in multiple ways. For example, by changing pricing, by adding minor features (new and improved!), changing the packaging (shampoo sachets), or highlighting alternative uses. In this commercial, we get to how Cadbury India is pushing for chocolates to be used as small gifts instead of more traditional sweets used during Diwali festival. • Product Development: McDonald's introduced salads in their outlets in order to retain its existing customers, many of whom were becoming more health conscious. Salads are exactly opposite of what McDonald's is known for! However, regulatory pressures, changing consumer behavior, and negative media coverage forced them to introduce more healthy choices on the menu.
  • 48. Example • Market Development: Introducing an existing product in different markets is perhaps one of the most used strategies to extract full benefit of a successful product. A very common example is entering different geographical areas nationally and internationally. I think that Apple's introduction of iPod Touch falls into the same category. iPod Touch was a replica of iPhone except that it couldn't make calls. Considering that iPhone couldn't make calls either (remember AT&T issues?), iPod Touch was basically another iPhone without the contract with AT&T. However, it just opened up a tremendous market for Apple. • Diversification: When marketers introduce a totally new product to a completely new market, they engage in diversification. I think that iPod was perhaps one of the most successful diversification ever. With its launch Apple targeted a very large customer group, very different from its traditional smaller cult-like following.
  • 49. ADLMatrix (Arthur D. Little) • The ADL Matrix from Arthur D. Little is a portfolio management method that is based on product life cycle thinking. The ADL approach forms a two dimensional matrix based on stage of industry maturity (Embryonic, Growth, Mature, and Aging) and firms competitive position as Dominant, Strong, Favourable, Tenable and Weak), environmental assessment and business strength assessment. • The combination between the dimensions yields 5 (competitive position) by 4 (life cycle stages) matrix (see figure 1). The positioning in the matrix identifies a general strategy. This assessment of the industry life cycle stage of each business is made on the basis of: • Business market share • Investment • Profitability and cashflow.
  • 51. • The competitive position of a firm is based on the assessment of the following criteria: • Dominant: This is a comparatively rare and typically short-lived. In many cases is either to a monopoly or a strong and protected technology leadership. • Strong: Market share is strong and stable, regardless of competitors. The firm has a considerable degree of freedom over its choice of strategies and is often able to act without its market position being unduly threatened by its competitors. • Favourable: Business line enjoys competitive advantages in certain segments of market. However there are many rivals, and no clear leader among stronger rivals. Results in the market leaders a reasonable degree of freedom. • Tenable: Position in overall market is small or niche, either geographical or defined by product. Competitors are getting stronger. • Weak: Continuous loss of market share. Business line is too small to maintain profitability. ADLMatrix: The CompetitivePosition
  • 52. • The industry maturity is based on the assessment of the following criteria: • Embryonic: Introduction stage characterized by rapid market growth and very little competition. • Growth: Market continues to strengthen and sales increase. • Mature: Market is stable, there's a well established customer base and alot of competition. • Aging: Demand decreases and companies start to abandoning the market. ADLMatrix: IndustryMaturity Stage
  • 53. ADLMatrix: Limitations • There is no standard length of life cycles. • Determining the current industry life cycle phase is awkward. • Competitors may influence the length of the life cycles.
  • 54. General Electric (GE)Matrix • GE Matrix or McKinsey Matrix is a strategic tool for portfolio analysis. It is similar to the BCG Matrix and actually the GE / McKinsey Matrix is an extension of the BCG Matrix - multifactor portfolio analysis tool. • The GE / McKinsey Matrix is divided into nine cells - nine alternatives for positioning of any SBU or product offering. Based on the strength of the business and its market attractiveness each SBU will have a different position in the matrix. Further, the market size and the current sales will distinguish each SBU. Based on clear understanding of all of these factors decision makers are able to develop effective strategies. • The nine cells in the matrix can be grouped into three major segments:
  • 56. Segment1 • This is the best segment. The business is strong and the market is attractive. The company should allocate resources in this business and focus on growing the business and increase market share.
  • 57. Segment2 • The business is either strong but the market is not attractive or the market is strong and the business is not strong enough to pursue potential opportunities. Decision makers should make judgment on how to further deal with these SBUs. Some of them may consume to much resources and are not promising while others may need additional resources and better strategy for growth.
  • 58. Segment3 • This is the worst segment. Businesses in this segment are weak and their market is not attractive. Decision makers should consider either repositioning these SBUs into a different market segment, develop better cost-effective offering, or get rid of these SBUs and invest the resources into more promising and attractive SBUs.
  • 59. Factorsthat Affect Market Attractiveness Whilst any assessment of market attractiveness is necessarily subjective, there are several factors which can help determine attractiveness. These are listed below: • Market Size • Market growth • Market profitability • Pricing trends • Competitive intensity / rivalry • Overall risk of returns in the industry • Opportunity to differentiate products and services • Segmentation • Distribution structure (e.g. retail, direct, wholesale
  • 60. Factorsthat Affect CompetitiveStrength Whilst any assessment of Competitive Strength is necessarily subjective, there are several factors which can help determine Competitive Strength. These are listed below: • Strength of assets and competencies • Relative brand strength • Market share • Customer loyalty • Relative cost position (cost structure compared with competitors) • Distribution strength • Record of technological or other innovation • Access to financial and other investment resources