Strategic Market Management.

Strategic market management is a system designed to help management both precipitate & make strategic decisions as well as create strategic visions. Strategic decisions involves the creation, change or retention of strategy. Strategic decision is usually costly in terms of resources & time required to reverse or change it.

 I. 1. a.
o o o

Overview of strategic market management. Strategic Analysis. External Analysis. Customer Analysis.
Segment identification. Its motivation. Unmet needs.

b. Competitors Analysis.
o o o o o o o o o Identity competitors, current & potential. Strategic groups combine competitors. Similar characteristics (size & resources). Strength (Brand name & distribution). Strategies (High quality). Performance. Image & personality. Objectives. Current & past strategies. Culture. Cost structure. Strengths & Weaknesses.

c. Market Analysis.
o o o o o o o o Size. Growth prospects. Market profitability. Entry barriers. Cost structure. Distribution system. Trends market. Key success factors.

d. Environmental Analysis.
o o o o o o o Technological. Governmental. Economic. Cultural. Demographic. Scenarios. Information need areas.

Opportunities, threats, trends & strategic uncertainties.

2. Internal Analysis. a. Performance Analysis.

o o o o o o o o o o Profitability. Sales. Shareholders value analysis. Customer satisfaction / Brand loyalty. Product / Service quality. Brand / Firm association. Relative cost. New product activity. Manager / Employee capability / performance. Product portfolio Analysis.

b. Determinants of strategic options.

o o o o o Strategy review Growth, Maintain, Harvest. Strategic problems. Organizations capabilities & constraints Strengths, Weaknesses, Constraints. Financial resources & constraints. Strengths & Weaknesses.

Strategic strengths, weaknesses, problems, constraints & uncertainties.

 Creating a vision for the business. a. Business vision can play several roles.
o o o It can guide strategy, suggesting strategic paths for the business. It ensures core competencies are preserved. It inspires employee by providing purpose that in worthwhile other than maximizing shareholders wealth.

o o

Components of business vision. Core values Three to Five.

Time less. Guiding principles of an organization.

 Core purpose At least for 100 yrs.

o What is our business?

Identification of strategic alternatives.

o o o o What is our customer? What is value to our customer? What will be our business? What should be our business be?

BHAG (Big, hairy, audacious goals) Focus on.

o o o o Target. Common enemy. Role model. Internal transformation.

II.

1. a.
o

Strategy identification & selection. The purpose of external & internal analysis is twofold to help generate strategic alternatives & to provide criteria for selecting from among them. Product market investment strategies. Product definitions.
Which product lines to continue, add or delete.

b.
o

Market definition.
Select market having competitive advantage.

c.
o

Vertical integration.
Backward Forward Horizontal integration.

d. Growth direction.
o o o o Market penetration. Product expansion. Market expansion. Diversification.
Product Existing New

Existing Market New

Market penetration

Product expansion

Market expansion

Diversification

e. Investment strategy.
o Build Maintain Harvest Divest.

2. Functional area strategy. Strategies in the areas of sales, brand management, R & D, Manufacturing & finance. Five strategy thrusts for achieving SCA.
o o o o o Differentiation. Low cost. Focus strategy. A preemptive move. Synergy.

3. Bases of competitive advantage.

o o o Assets. Competencies. Synergies.

Criteria for strategy selection. a. Consider scenarios suggested by strategic uncertainties & environmental opportunities threats. b. Pursue a sustainable competitive advantage.
o
o

Exploit organizational strengths or competitors weakness. Neutralize organizational weakness or competitors strength.

c. Be consistent with organizational vision / objectives.

o o o o Achieve a long term return on investment. Be compatible with vision / objectives. Need only available resources. Be compatible with the internal organization.

d. Be feasible.

e. Consider the relationship to other strategies within firm.

o o o Foster product portfolio balance. Consider flexibility. Exploit synergy.

 Implementation.
o Converting strategic alternatives into an operating plan.

Strategy Review.
o Sales, market share, margins, profit & ROI.