1. The strategy tools used in
industry analysis
Students:
• Ahmed Abdelkader
• Ali
• Mehdi Laouiti
• Thang Vu
• Thiago Resende
• Vu Nguyen

2. Agenda
I/ Introduction
 Listing the tools
 Globalization
II/ Tools of Strategy
 Balanced Scorecard
 AD Little Matrix
 The 5 foces – Michel Porter
 Cliff Bowman – Strategy Clock
 PESTEL

3. Introduction
“Strategic Analysis is the process of conducting research on the
business environment within which an organisation operates and
on the organisation itself, in order to formulate strategy”
“Global Business Strategy can be defined as the business
strategies engaged by the businesses, companies or firms
operating in a global business environment and serving consumers
throughout the world”
• At present, companies represent a curious mix of old as well as
the new economy
• List of analysis tools:
• Balanced scorecard
• AD Little Matrix
• PESTEL analysis
• Porter’s Five Forces
• Bowman’s business clock

4. • Developed in 1992 by Harward Business
School;
• It´s mostly used in IT companies;
• Supported by proven design methods and
automation tools;
• Widely adopted in English-speaking western
countries, Asia and Spanish-speaking
countries;
• It´s a 4 steps methodology (next slide);
• Mixture of financial and non-financial
Balanced Scorecard
II/Tools of Strategy

5. Balanced Scorecard
KPI´s
Revenue
ROI
Cash flow
Objectives
Market share
Products and
services
Human capital
Skills
Training
Leadership
Operational
goals
Key processes
Provide
information
Decisions

6. • Companies adopting Balanced Scorecard:
• 50% of all companies listed in Fortune 1000
(US)
• Europe: between 40% e 45% of all IT
companies
• Worldwide: ASIA, South America, etc.
Balanced Scorecard

7. Enter The Matrix
 For a diversified company, it is very important to
have a global view of all strategic business areas
to assess, manage continuously its business
portfolio, and to proceed to the transfer and
allocation of resources that are always below
requirements
AD Little Matrix

8. Enter The Matrix
The Matrix position the strategic activities on two
dimensions:
 Attractions axis
 Assets axis
Concerning the Ad Little Matrix :
 Arthur Dohen Little offers to analyze the business
portfolio of the company based upon the strengths
and attractions of the company and the industry in
which it operates, taking into account the phase of
sector life cycle

9. Criteria
Degree of maturity:
• Based on 4 phases of the SBA lifecycle
• Measure the attractiveness of the sector
• Includes both the interest of the business, sector
risk and capital intensity to survive.
• Measure the financial needs of business (important
in the first 2 phases of the cycle)
• According to ADL, it is possible to describe each
phase according to these criteria, ie a start-up
activity is obviously of benefit subject to this type of
activity that mutations mature and stable.

10. Indicators Start-up Growth Maturity Aging
Rate of growth Much faster than
GDP
Faster than GDP Much faster than
the GDP
Null or declining
Growth
potential
essentially
unsatisfied
Partly unsatisfied;
relatively
unknown
Generally
satisfying ; known
Satisfying ;
Well known
Product line narrower
bit of variety
Large ;
Proliferation
Large ;
Rationalization
Narrower or Large
if the product
breaks out
Number of
competitors
No rules ,
often increasing
Max and then
decrease
Stable or
decreasing
Minimum
Market Share
distribution
often highly
fragmented
Progressive
concentration or
fast
Stable Concentrated or
very fragmented
Market shares
Stability
Unstable Progressively
stable
Fairly stable Very stable
Clientele
Stability
Unstable Progressively
stable
Stable Very stable
Ease of access
to the sector
Easy More Difficult Very Difficult Not tempting
The Technology Fast evolution;
Poorly Known
Changing Known ;
Easy acces
Known ;
Very easy access

11. And
The competitive position:
• There is a close link between the company's
competitive position and profitability of the
segment.
• measure the relative strength of the company
on key success factors of the activity
analyzed
• is based on a method of weighting and
scoring the position of the studied SBA of the
company compared to KFS such as market
share, growth rate, product quality, range,
brand, innovation ...
• Five positions resulting from these criteria:
marginal position, unfavorable, favorable,
strong and dominant

12. COMPETITIVE
POSITION
CHARACTERISTICS
DOMINANT • Is able to control the behavior of its competitors
• Has the widest choice of strategic options independently
of its competitors
STRONG • Is capable of conducting the policy of his choice without
endangering its long-term position
FAVORABLE •Has exploitable strengths for the conduct of some
strategies
•has very good chances to maintain its position Long term
UNFAVORABL
E OR
DEFENSIBLE
•performance is satisfying enough to justify a continuation
of its activities
•has very good chances to maintain its position in Long
term
Generally remains thanks to the tolerance of larger
competitors
•is likely to maintain its medium term position
MARGINAL •has satisfactory performance but can get better
•has the characteristics of a better position, but has a major
weakness
•Can survive in Short-term but must improve its position to

13. Typology
The natural development :
• Ideal location, the company occupies a leading position in
a growing market
• invest in and consolidate its position
Selective development or selection:
• The company has a challenger position in a market that
stopped growing
Reorientation :
• The company has a disadvantageous position on a
growing market
Abandonment:
• the company is struggling in a market that stopped
growing

14. Chart of decision
REORIENTATION
NATURAL
DEVELOPMENT
ABANDONMENT
SELECTIVE
DEVELOPMENT
Start-up Growth Maturity Aging
Dominant
Strong
Favorable
Unfavorab
le or
Defensible
Marginal

15. Start-up Growth Maturity Aging
DOMINANT -Fully push to
increase market
share
-Maintain
position
Maintain MS
-Maintain
position Grow
with the sector
-Maintain
position
STRONG -Try to improve
the position,
-Fully push for
MS
-Try to improve
the position,
-Fully push for
MS
-Maintain or find
a niche and try
to protect it
-Maintain its
position or
Gather
FAVORABLE Select and Fully
push to gain
market share,
push in a
selective
manner for the
market share
Try to improve
the Position
push in a
selective
manner for the
market share
-Maintain or find
a niche and try
to protect it
Gather and
Retire
Progressively
UNFAVORABLE
OR
DEFENSIBLE
Push in a
selective
manner to
improve the
Position
Find a Niche and
protect it
Find a niche ,try
to protect it and
retire
progressively
Retire
progressively ;
Abandon
MARGINAL RUSH or
RETIRE
Turn around or
abandon
Turn around or
retire
progressively
Abandon

16. Advantages / Inconvenients
Advantages :
 Richness of the analysis
 Flexibility in analysis
 Diversity observed competitive situations
 Dynamic aspect linked to the use of lifecycle
 Integration of the notion of competence (MKTG, Finance,
Technology ...)
Inconvenients :
 very complex
 Difficulties in identifying key success factors
 Pronounced Subjectivity of Analysis
 Hard to Apply

17. Companies that uses AD Little
Matrix

18.  1- Industry competition
 2- Potential entrants
 3-Threat of substitute
 4- Buyer power
 5- Supplier power
The five forces - Michael Porter

19. Criticism
 The model is based on the idea of competition
 First-mover advantages play a smaller role
 Fails to link directly to management action
 Limited justification of buyers
 The model assumes a static market structure
 The model focus only on the micro environment

20. Other important factors
 Internet
 Collaboration
 Quality leadership
 Business location
 Culture

21. _Bowman's Strategy Clock is a model used in
marketing to analyse the competitive position of a
company in comparison to the offerings of
competitors.
_It was developed by Cliff Bowman and David
Faulkner as an elaboration of the three Porter
generic strategies.
_Bowman considers competitive advantage in
relation to cost advantage or differentiation
advantage
_Consists of 8 distinct parts on the clock.
Cliff Bowman´s Strategy
Clock

22. EXAMPLE:
_
SUMARY:
_Bowman's Strategy Clock is a very useful model to help you understand how companies
compete in the marketplace
_By looking at the different combinations of price and perceived value, it is easy to
choose a position of competitive advantage for company’s competencies
_This is a powerful way of looking at how to establish and sustain a competitive position
in a market driven economy
_analyze and evaluate your current strategy and determine if adjustments might improve
your overall competitive position

23. Pestel as an analysis tool
Political factors : these refer to government policy such as degree of
intervention in economy.
• employment laws
• environmental regulations and tax policy
• trading agreements and government stability.
Economic factors: these include interest rates , economic growth,inflation
and exchange rates.
• higher interest rates may deter investments
• strong currency may make exports diffficult
Social factors: changes in social trends can impact on the demand for a
firm's products and the availabillity and willlingness of individuals to work.
• includes living standards
• attitudes to foreign products and services and interests and culture.

24. Technological factors: new technologies create new products and new processes.
• Infrastructure
• computer usage
• broadband and outsourcing.
• environmental or external factors: this include the weather and climate change
and environment friendly products .
• changes in temprature affects many industries
• the growing desire for environment friendly transportations.
Legal factors: this is related to the legal environment in which the firms operate.
• consumers law
• competition law
• employment law
• copy rights and health and safety legislation.
Pestel as an analysis tool