Professional Documents
Culture Documents
advantage?
collaboration?
Bases of Competitive Advantage
Competitive strategy is concerned with the basis on which a
competitors
Price-based Strategies (Routes 1 and 2)
However, price reduction is going to be followed by all
develop/innovate products
Hence, low cost in itself is not a basis for achieving
competitive advantage
Low cost can be a basis for advantage IF costs can be
marketing strategy where those areas of the enemy are hit that
are easy to be captured. We are focusing on flank areas like
Charsadda, Parachinar, Hangu, Tal etc. They are backward and
underdeveloped areas. Such areas are mostly neglected by
MNCs, and even if they do send their representatives to such
areas, they cannot sell their medicines there because their
prices are high compared to us. Doctors in such areas need
such medicines that are of good quality but low-priced as
well. (Manager B at Bryon Pharmaceuticals, Peshawar)
The Hybrid Strategy (Route 3)
A hybrid strategy seeks simultaneously to achieve differentiation and a
that are different from those of competitors and that are widely
valued by buyers
competing
In ideal conditions, kicking out the competitor out of the market will give
Pressure Groups
Sharing of resources
Reducing uncertainty
Reducing costs
Practising CSR
Strategic Directions and Corporate-Level Strategy
Analyze the choices of products and markets for an
Value creation
Corporate Portfolio
parenting management
Penetration
Diversification Consolidation
Development
Scope decisions
Strategic Directions
The Ansoffs matrix provides a simple way of generating four
basic alternative directions for strategic development
Market Penetration
An organisation takes increased share of its existing markets with
strategic direction
because of:
Acquiring new strategic capabilities
objectives:
maximise fit with customer requirements
New geographies
Coaching and
Envisioning
facilitating
Providing central
services and Intervening
resources
Value-Destroying Activities of Corporate Parents
relevant market is, in which they are operating and the competitive
strength of the SBU in that market
share
The Directional Policy Matrix
Strategy Guidelines based on the Directional
Matrix
The Directional Policy Matrix
The matrix suggests that the businesses with the highest