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The Positioning Approach. The oldest approach to military strategy.The newest of the three prescriptive approaches to strategy .Design and Planning Approaches were explained in Chapter 3.Focuses on how firms in a given context differ in product market
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1. BUSINESS LEVEL STRATEGY ANALYSIS The Positioning Approach.
Porter’s 5 Forces.
Value Chain Analysis.
The Generic Strategies.
2. The Positioning Approach The oldest approach to military strategy.
The newest of the three prescriptive approaches to strategy .
Design and Planning Approaches were explained in Chapter 3.
Focuses on how firms in a given context differ in product market positions compared to the competition.
3. Premises of The Positioning Approach Strategy follows structure.
Looks at the groups of competitors in an industry.
Relies more heavily on calculation than the design or planning schools.
Places even more emphasis on the role of strategic planners.
4. Porter’s Five Forces Analysis Breaking Apart Industry-Level Competition
6. The 6 Barriers of Entry Economies of Scale.
Product Differentiation.
Capital Requirements.
Cost Disadvantages Independent of Size.
Access to Distribution Channels.
Government Policy.
8. Buyer Power Determinants Bargaining Leverage.
Buyer Concentration
Buyer Volume.
Buyer Switching Costs.
Buyer Information.
Ability to Integrate Backward.
Substitute Products.
Pull-Through.
9. Buyer Power Determinants Price Sensitivity.
Price/Total Purchases
Product Differences.
Brand Identity.
Impact on Quality/Performance.
Buyer Profits.
Decision-Maker’s Incentives.
11. Supplier Power Determinants Differentiation of Inputs.
Switching Costs of Suppliers.
Presence of Substitute Products.
Supplier Concentration.
Importance of Volume to Supplier.
Cost Relative to Total Purchases in the Industry.
Impact of Inputs on Cost or Differentiation.
13. Power of Substitutes Relative Price Performance of Substitute.
Switching Costs.
Buyer Propensity to Substitute.
15. Determinants of Rivalry Industry Growth.
Fixed Costs/Value Added.
Intermittent Overcapacity.
Product Differences.
Brand Identity.
Switching Costs.
Concentration and Balance.
Informational Complexity.
Diversity of Competitors.
Corporate Stakes.
Exit Barriers.
17. Value Chain Analysis
20. Value Chain Analysis Importance of value-chain analysis is that it provides a framework for identifying or
developing a distinctive competence.
21. Devising a Plan of Action Position the Company.
Influence the Balance of the Forces.
Anticipate Shifts in the Forces.
22. Creating Families of Strategies . Locating the core business.
. Distinguishing the core business.
. Elaborating the core business.
. Extending the core business.
. Reconceiving the core business.
28. Strategies of Differentiation Price Differentiation.
Image Differentiation.
Support Differentiation.
Quality Differentiation.
Design Differentiation.
Undifferentiation.
29. Strategies of Scope Unsegmentation.
Segmentation.
Niche.
Customizing.
30. Elaborating the Core Business Penetration Strategies.
Market Development Strategies.
Geographic Expansion Strategies.
Product Development Strategies.
32. Ways to Elaborate a Given Business