Professional Documents
Culture Documents
STRATEGY
INTERNATIONAL BUSINESS
SESSION – 13 &14
RAVENSHAW MANAGEMENT CENTER
MBA-II – NOV.
B.S.PANI
Developing Competitive Strategies and
Strategic Options
• Key Strategic Factors
- Competitive strategies provide competitive
advantages.
- Identification of Distinctive Competences – activities
that the organization does better than its competitors
e.g Production, Engineering, logistics, R&D, product
innovation , skills, resources access , adaptability to
change, organizational strength etc.
- Distinctive Competences can create barriers to
imitation and help sustain competitive advantage
Developing Competitive Strategies and
Strategic Options
• Creating a Strategic Fit :-
- Accurate identification of internal and external conditions that
is relevant to the dynamic competitiveness.
- Match the available skills and resources to strategic options.
- Strategic options depend upon
- Corporate objectives
- Target market characteristics
- Defining action plan
- Building and operating
the implementation plan.
- Success in IB depends heavily upon the
organization's ability to reshape strategies in
response to changing global environments and
markets.
Factors Contributing positively
towards gaining competitive advantage
• Purchasing and supply
• Research and Development
• Product Innovation
• Design
• Patents
• Production Technology
• Quality and intensity of promotion
• Production and brand performance
• Pricing
• Delivery and Technical support services
• Financial and commercial terms on offer.
Competition Analysis
• Process of scanning existing and potential
competition.
• Planning competitive counter moves – strongest
player normally makes the first competitive move in
the market
• Resource allocation – Allocate to maximize
competitive position with respect to the competitor
chosen to compete with.
• Selection of competition to compete with depends
upon the likely cost of winning.
• The resultant competitive position can become the
most valued asset of the organization.
Factors that limit Industry Profitability
( Simmonds 1986 :HBR)-1
Influencing Factor Will lower Profitability Will raise profitability
Environmental Factors
-Rate or technological change
-Nature of competition
-Intensity of competition
Organisational Factors Strategic Factors
-Long term objectives
-Size
-Time horizon
- Structure
-Product- market strategy
- Culture
-Manufacturing Capacity
Managerial Factors
Marketing Factors -Communication
-Use of Market Research - Attitude
-Customer Services - Leadership Style
- Product Quality
Pricing Philosophy
Business Performance