2. Strategic Planning
Strategic planning is a process that helps organizations
answer three specific questions that are critical for any
company that are critical for any company that operates
in a competitive business arena:
 Who are we?
 Where are we going?
Strategic Emphasis
 How will we get there?  Competitive Strategy

3. 5 Potential Areas of Strategic
Emphasis
Product /
services
Raw material
Technology
Competency
Customer

4. Product-Based Strategic
Emphasis
New Product Development
Product Design
Input, conversion and output
process
Product Quality
Continual improvement of
process and product quality
Service quality
Product marketing

5. Competency-Based Strategic
Emphasis
Low cost
relating to
competenc
ies
Efficient
input,
conversion
and output
process
(as
applicable)
High
capacity
relating to
the
competenc
ies
Strong
substitute
marketing
Flexbility
relating to
the
application
of the
competenc
ies

6. Customer-Based Strategic Emphasis
Brand
Loyalty
Custom
er
relation
Ongoin
g
custom
er
researc
h
Ongoin
g
custom
er
commu
nication
Custom
er
needs
analysi
s
Respon
se to
changin
g
custom
er
needs
Custom
er
focus

7. Technology-Based Strategic
Emphasis
Proprietary Rights to the technology
Applied Research
Application Marketing
Flexibility in the application of technology
Formation and Operation of Strategic
Partnership

8. Raw Material-Based Strategic
Emphasis
Access to &
control sufficient
supply of Raw
Materials
Capability of
securing Raw
material
Input,
conversion, and
output processes
Flexibility

9. Competitive Strategy
Strategic planning process answers three questions:
1. Who are we?
2. Where are we going?
Strategic Emphasis
3. How will we get there?  Competitive Strategy

10. Selecting a Competitive
Strategy
1. Low cost/broad scope
2. Differentiation/broad scope
3. Low-cost/narrow scope (niche)
4. Differentiation/narrow scope (niche)