strategies for the business at different levels

1. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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• Strategy
• Business-Level strategy
• Tactical Pricing Decision
• Tactical Product Decision
• Corporate-Level Strategy
Chapter No. 6 Strategy

2. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Strategy
• An action managers take to attain a goal of an
organization.
Action Organizational Goal
To attain

3. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Business-Level Strategy
• Strategy concerned with deciding how a firm
should compete in the industries in which it
has elected to participate.

4. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Choices for Business-Level Strategy
•Low cost
•Product Differetiation
To compete your competitors you need a
Competitive advantage.

5. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Competitive Advantage
• Competitive advantage: Advantage obtained when a firm
outperforms its rivals.
• Distinctive competency: A unique strength that rivals lack.
• Sustainable competitive advantage: A distinctive
competency that rivals cannot easily match or imitate.

6. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Low-Cost Strategy
Focusing managerial energy and attention on
Doing everything possible to lower the costs of
the organization.
Economies of scale:
Cost advantage derived from a large sales
volume.

7. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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The Low-Cost Value Cycles
Lower costs
Economies
of scale
Lower prices
Increased
demand
Higher
profitability
and profit
growth

8. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Differentiation Strategy
Increasing the value of a product offering in
the eyes of consumers.

9. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Segmenting the Market
• Markets are characterized by different types of
consumers.
• Some are wealthy, some are not.
• Some are old, some are not.
• Some are influenced by popular culture, some never
watch TV.
• Some care deeply about status symbols, others do not.
• Some place a high value on luxury, some on value of
money.

10. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Consumer Markets
Consumer markets segmentation
characteristics:
• Geographic
• Demographic
• Psychographic
• Behavioralistic
Source: www.netmba.com

11. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Choosing Segments to Serve
• Focus Strategy: Serving a limited number
of segments.
• Broad market strategy: Serving the entire
market.

12. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Implementing Bussiness-Level Strategy
• Primary activities
Activities having to do with the design,
creation, and delivery of the product; its
marketing; and its support and after-sale
services.

13. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Implementing Bussiness-Level Strategy
• Support activities
Activities that provide inputs that allow the
primary activities to occur.

14. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Competitive Tactics
• Actions that managers take to try to outmaneuver
rivals in the market.
Tactics includes decisions about pricing and product
offerings.

15. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Tactical pricing decision
• Managers can make a number of different tactical
pricing decisions.
• Launching a price war to gain maximum share from
competitiors.
• Cutting prices when new competitors enter the
market.
• Dell computers did in 2000-2001, took advatage of it
low price.

16. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Tactical Product Decision
• With pricing, managers can pursue a wide range of
tactical product decisions.
• One tactic, known as product proliferation, has been
successfully pursued.
• Product proliferation occurs when organizations
market many variations of the same products
• Alot of products by only one company.
• Like alot of detergents are available in markets but
producers are only Unilever and Procter and Gamble.

17. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Corporate-Level Strategy
• Strategy concerned with deciding which industries a
firm should compete in and how the firm should
enter or exit industries.