Strategic management - publié le 09/11/2007

Résumé du document

This document presents and explains how to use the various tools of strategy.

Extraits

[...] Outbound Logistics. Marketing and Sales. Service. Secondary (support) activities General Administration. Human Resources Management. [...]

[...] Devise a strategy with which the company can defend itself against each competitive pressure. Wal-Mart have set up Wal-Mart Online; they could also provide playgrounds for Children, hand out free samples and recognise frequent shoppers personally. < number > II.4- Strategic Groups One technique for revealing the different competitive positions of industry rivals is strategic group mapping A strategic group consists of those rivals with similar strategies in an industry < number > II.4- Strategic Group Mapping Firms in the same Strategic Group have two or more competitive characteristics in common . [...]

[...] Cappucino) Ideal vs. actual behavior Supermarkets have added gourmet brands to reverse the trend II.5- Opportunity and Threat approach Key External Forces Competitors Suppliers Distributors Creditors Customers Employees Communities Managers Stockholders Labor Unions Special Interest Groups Products Services Opportunities & Threats < number > Key External Factors: Important to achieving long-term objectives Measurable Applicable to all competing firms Hierarchical II.5- Opportunity and Threat approach < number > II.5- An example Social & Environmental Forces World population > 6 billion France population= 60 million U.S. [...]

[...] industry Substitutes available (Source: Michael Porter, “On Competition”) < number > Buyer Power is the impact that customers have on a producing industry The Power of Buyers is determined by factors such as buyer concentration, switching costs, and backward integration Buyers are Powerful if: Buyers are concentrated:DOD purchases from defense contractors threaten to buy producing firm or such as Lockheed Martin Credible backward integration threat – can rival: Large auto manufacturers' purchases of tires Buyers are Weak if: Buyers are fragmented : Most consumer products Producers supply critical parts of buyers input: Intel's relationship with PC manufacturers II.3- Supplier Power Supplier concentration Importance of volume to supplier Differentiation of inputs Impact of inputs on cost or differentiation Switching costs of firms in the industry Absence of substitute inputs Threat of forward integration (Source: Michael Porter, “On Competition”) < number > Suppliers are powerful if: Suppliers are concentrated : Drug industry's relationship to hospitals Significant cost to switch suppliers: Microsoft's relationship with PC manufacturers Suppliers are Weak if: Standardized product with many competitive suppliers: Tire industry relationship to automobile manufacturers Concentrated purchasers : Garment industry relationship to major department stores II.3- Degree of Rivalry Exit barriers Industry growth Industry concentration ratio Fixed costs/Value added Product differentiation (Source: Michael Porter, “On Competition”) < number > SUPPLIER POWER LOW THREAT OF ENTRY LOW economies of scale capital requirements for R&D and clinical trials product differentiation control of distribution channels patent protection INDUSTRY COMPETITIVENESS LOW high concentration product differentiation patent protection constant demand growth no cyclical fluctuations in demand THREAT OF SUBSTITUTES LOW No substitutes. (generics) BUYER POWER LOW Physician as buyer: Not price sensitive No bargaining power. [...]

[...] May help in new product development planning May help in managing cash flow < number > II.1- Product Life Cycles The Stages of the Product Life Cycle: (Development) Introduction/Launch Growth Maturity (and after saturation) Decline Withdrawal < number > II.1- Product Life Cycles Sales Time Introduction Growth Maturity Decline < number > The Development Stage: Initial Ideas – possibly large number; May come from any of the following – Market research – identifies gaps in the market; Planned research and development Luck or intuition –Futures thinking – what will people be using/wanting/needing 5,10,20 years hence? Product Development: Stages New ideas/possible inventions Market analysis – is it wanted? Can it be produced at a profit? [...]