Types of strategy

1. PRESTIGE INSTITUTE OF
MANAGEMENT AND REASEARCH
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“ TYPES OF STRATEGIES”
“STRATEGIC PLANNING PROCESS”
“TOWS MATRIX”
“PORFOLIO ANALYSIS”
SUBMITTED BY:
AYUSH YADAV
MBA(FA)
BATCH 2013-15
Sch .No 1121806727

2. INDEX
 TYPES OF STRATEGIES
 STRATEGIC PLANNING PROCESS
TOWS MATRIX
PORFOLIO ANALYSIS
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3. TYPES OF STRATEGIES
Vertical integration.
Intensive.
Diversification.
Defensive .
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4. VERTICAL INTEGRATION
STRATEGIES
 When a company expands its business into areas that
are at different points on the same production path,
such as when a manufacturer owns its supplier and/or
distributor.
 Vertical integration can help companies reduce costs
and improve efficiency by decreasing transportation
expenses and reducing turnaround time, among other
advantages.
 Backward and forward integration are types of vertical
integration.
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5. VERTICAL INTEGRATION
STRATEGIES
 “Forward integration is a strategy where a firm gains
ownership or increased control over its previous
customers (distributors or retailers).”
 Backward integration is a strategy where a firm gains
ownership or increased control over its previous
suppliers.”
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6. VERTICAL INTEGRATION
STRATEGIES
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Forward
Integration
Backward
Integration
Balance
Integration

7. INTENSIVE STRATEGIES
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8. INTENSIVE STRATEGIES
 Market penetration:- Seeking increase the market
share for present product in present market.
 Market development:- Introducing a current
product in a new market area.
 Product development:- Seeking increased in sales by
improving or modifying present product.
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9. DIVERSIFICATION
STRATEGIES
Diversification is a
corporate strategy to increase
sales volume from new
products and new markets.
 The other three strategies
are usually pursued with the
same technical, financial, and
merchandising resources
used for the original product
line, whereas diversification
usually requires a company to
acquire new skills, new
techniques and new facilities.
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10. DIVERSIFICATION STRATEGIES
(TYPES)
 Concentric diversification:- Adding new, but related
product. E.g. Owner of Sugar Factory Started
Producing Paper and Wine from Wastage which he
use to throw First. With main product Sugar.
 Conglomerate diversification :- Adding new,
unrelated product or services. E.g. If you were
manufacturing clothes and then you move to food
industries is a good example of unrelated
diversification.
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11. DIVERSIFICATION STRATEGIES
(TYPES)
 Horizontal diversification:- Adding new unrelated
product with a present customers. E.g. An example of
horizontal diversification would be when a company
that is well known for making winter clothing decides
to start investing money into manufacturing summer
clothing.
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12. DEFENSIVE STRATEGIES
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Defensive
strategies
Retrenchment
Divestiture
Liquidation

13. RETRENCHMENT
 Retrenchment :- corporate level strategies.
 Seeks to reduced the size or diversity of organizations
operation.
 Reduction in expenditure in order to become financial
stable.
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14. DIVESTITURE
 Selling a division or part of organization.
 Used to raised capital for further strategies acquisition
or investment.
 When firm try to focus on their core strength lessening
their level of diversification.
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15. LIQUIDATION
 Selling all companies assets.
 Recognizing of defeat.
 Cease operation than to continue loosing large sum of
money.
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16. STRATEGIC PLANNING PROCESS
 Mission
 Objectives
 Situation Analysis
 Strategy Formulation
 Implementation
 Control
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17. MISSION
 A company’s mission is its reason for being. The
mission often is expressed in the form of a mission
statement, which conveys a sense of purpose to
employees and projects a company image to
customers.
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18. OBJECTIVES
 Objectives are concrete goals that the organization
seeks to reach. The objectives should be challenging
but achievable.
 They also should be measurable so that the company
can monitor its progress and make corrections as
needed.
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19. SITUATION ANALYSIS
 Situation Analysis refers to a collection of methods that
manager use to analyze an organization internal or external
environment to understand the organization capabilities
and business environment.
 S.A. consists 5cs Methods-
 Company
 Competitors
 Customers
 Collaborators
 Climate
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20. STRATEGY FORMULATION
• Once a clear picture of the firm and its environment is
in hand, specific strategic alternatives can be
developed.
• While different company’s have different alternatives
depending on their situation, there also exist generic
strategies that can be applied across a wide range of
firms.
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21. IMPLEMENTATION
 The selected strategy is implemented by means of
programs, budgets, policies and procedures.
 Implementation involves organization of the firm’s
resources and motivation of the staff to achieve
objectives.
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22. CONTROL
 Once implemented, the results of the strategy need to
be measured and evaluated, with changes made as
required to keep the plan on track.
 Standards of performance are set, the actual
performance measured and appropriate action taken
to ensure success.
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23. Mission
Objectives
Situation Analysis
Strategy Formulation
Implementation
Control
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24. INTRODUCTION
 SWOT analysis (alternatively SWOT Matrix) is a
structured planning method used to evaluate the
Strengths, Weaknesses, Opportunities, and Threats
involved in a project or in a business venture.
 A SWOT analysis can be carried out for a product,
place, industry or person.
 It involves specifying the objective of the business
venture or project and identifying the internal and
external factors that are favorable and unfavorable to
achieving that objective.
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25. SWOT
SWOT stands for
 STRENGTH
 WEAKNESSES
 OPPORTUNITY
 THREATS
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26. STRENGTHS
They are resources and capabilities that can be used as a
basis to develop a competitive advantage.
E.g. : -
 An access to proprietary know-how
 Patents
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27. WEAKNESS
Absence of certain strengths or the flip side of the
strength
E.g. :
 A poor reputation
 High Cost structure
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28. OPPORTUNITIES
The external environment may reveal certain
opportunities for growth and development.
• E.g. :
 Loosening of regulations.
 Removal of international trade barriers
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29. THREATS
Changes in external environment may present certain
threats
E.g.
 Shift in consumer taste
 Emergence of substitute product
 New regulations
 Increased trade barries
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30. 30

31. 31

32.  S-O strategies pursue opportunities that fit well the
company's strengths.
 W-O strategies overcome weaknesses to pursue
opportunities.
 S-T strategies identify ways that the firm can use its
strengths to reduce its vulnerability to external threats.
 W-T strategies make a defensive plan to prevent the
firm's weaknesses from making it susceptible to
external threats.
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33. Portfolio Analysis
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34. TYPES OF PORTFOLIO ANALYSIS
1. The BCG (Boston Consulting Group) Growth Share
Matrix
2. The GE (General Electric) Business screen
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35. THE BOSTON CONSULTING GROUP’S
GROWTH-SHARE MATRIX
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20%-
18%-
16%-
14%-
12%-
10%-
8%-
6%-
4%-
2%-
0
Market Growth Rate
10x 4x 2x 1.5x 1x
Question marks
3 ?
?
2
Dogs 8
.5x .4x .3x .2x .1x
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Relative Market Share
1
Cash cows
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Stars
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36. STAR STRATEGIES
 A business unit in the
star category enjoys a
relatively high market
share in a rapidly
growing market.
 Stars generate large
amount of cash.
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37. QUESTION MARKS
 A business unit in the
question-mark
category has a
relatively low market
share and high-growth
rate .since they are
growing rapidly.
 They consume large
amount of cash .
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38. CASH COW
 The cash cows are
leaders in a mature
market where there is
little additional growth,
but a lot of stability.
 The have a relatively
high market share which
is growing slowly
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39. DOGS
 Dogs have low market
share and low growth
rate. A dog is a
moderate user and
supplier of cash. A dog
does not need much
investment but it
blocks capital that
could be invested in
industries with better
returns.
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40. Q &A
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41. THANK YOU.....
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