Strategic methods

• Horizontal Intervention (same level in the supply chain)

  When a business or government intervenes between firms at the same stage (e.g. competitors merging)

  → it may reduce competition

  → allowing firms to gain market power

  → which could lead to higher prices and reduced consumer choice

  → but also enables economies of scale, lowering unit costs

  → which could benefit customers if cost savings are passed on.
• 2. Vertical Intervention (different levels of the supply chain)

  When intervention occurs between firms at different stages (e.g. supplier + manufacturer)→ it can improve supply chain coordination→ leading to better efficiency, reduced delays, and lower costs→ which may improve customer satisfaction and business profitability.
• Government Vertical Intervention

  Government may regulate or support different supply chain stages (e.g. subsidies for farmers)→ to protect critical sectors and ensure stable input supply→ supporting national food security or strategic industries.
• rganic (Internal) Growth

  A business may grow by expanding output or launching new products internally

  → this allows greater control over growth pace and direction

  → reducing the risk of culture clashes or integration issues

  → which helps maintain brand identity

  → but growth may be slower compared to external methods.
• 2. External Growth (Mergers & Takeovers)

  A business might acquire another to gain instant market access or remove a competitor

  → this can rapidly increase market share and economies of scale

  → reducing average costs and increasing profitability

  → but may also lead to integration challenges and redundancies

  → which could damage employee morale or reputation.
• Franchising

  A business may grow by franchising its brand to other entrepreneurs

  → allowing rapid expansion with lower capital investment

  → reducing financial risk for the franchisor

  → while increasing brand awareness

  → though the brand reputation depends on franchisee performance.
• 4. Innovation Strategy

  A business might pursue growth through innovation (e.g. new products/tech)

  → allowing it to differentiate and lead the market

  → which attracts new customers and builds brand loyalty

  → increasing revenue potential

  → but requires significant R&D investment and carries a risk of failure.
• 5. Joint Ventures/Strategic Alliances

  Two firms may collaborate to enter a new market

  → allowing risk-sharing and access to local knowledge or tech

  → which reduces the barriers to entry

  → but success depends on mutual trust and clear agreements

  → or the partnership could break down, damaging both brands.
• . Retrenchment (Cutting Back)

  A business may retrench by closing underperforming units or reducing costs

  → this improves efficiency and focuses resources on profitable areas

  → potentially improving profit margins and cash flow

  → but may harm employee morale and reduce long-term capacity.
• SWOT Analysis

  • Purpose: Evaluate internal Strengths and Weaknesses, and external Opportunities and Threats.
  • Use: Helps in strategic planning by aligning strengths with opportunities and mitigating threats.
• PESTEL Analysis

  Purpose: Analyze external macro-environmental factors: Political, Economic, Social, Technological, Environmental, Legal.

  Use: Helps anticipate market trends and adapt strategies accordingly.
• Porter's Five Forces

  Purpose: Assess industry competitiveness through:

  • Threat of new entrants
  • Bargaining power of suppliers
  • Bargaining power of buyers
  • Threat of substitutes
  • Industry rivalry

  Use: Develop strategies to gain a competitive edge.
• Balanced Scorecard

  Purpose: Translate strategy into actionable goals across four areas: Financial, Customer, Internal Processes, Learning & Growth.

  Use: Align day-to-day operations with strategic vision.
• Benchmarking

  Purpose: Compare processes, performance, and practices with industry leaders.

  Use: Identify areas fo
• Scenario Planning

  Purpose: Develop flexible strategies based on different future scenarios.

  Use: Manage risk and uncertainty.
• Growth Strategies (Ansoff Matrix

  Types:

  • Market Penetration: Increase market share in existing markets.
  • Market Development: Enter new markets.
  • Product Development: Innovate new products for existing markets.
  • Diversification: New products in new markets.

  Use: Identify strategic growth opportunities.