CBMEC

• Strategic Management


  The art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives
• Competitive Advantage


  A favourable position a business holds in the market which results in more customers and profits
• Competitive Advantage


  A set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition
• Differentiation


  Allows you to provide superior value to customers at an affordable price, creating a win-win scenario that can boost the overall profitability and viability of your business
• Differentiation Strategies


  • Product Differentiation
  • Service Differentiation
  • Distribution Differentiation
  • Relationship Differentiation
  • Image/Reputation Differentiation
  • Price Differentiation
• Product Differentiation


  • The most visible, it includes actual physical and perceived differences, of which the latter can be acquired through advertising
• Service Differentiation


  • Includes not only delivery and customer service, but all other supporting elements of a business such as training, installation, and ease of ordering
• Distribution Differentiation


  • Distribution can provide coverage or availability, immediate access to expertise, and greater ease of ordering, and higher levels of customer or technical service
• Relationship Differentiation


  • Differentiation through company personnel. Employees, associates, or team members with customer interface, they serve as the linkage between the product and customer
• Image/Reputation Differentiation


  • Some businesses set themselves apart by their image either as part of another differentiation avenue or as a separate strategic path. Image is controlled and managed by symbols used in communications, advertising, and all types of media
• Price Differentiation


  • Requires recognition that every customer has a different price they would be willing to pay for your product. The value of goods is a subjective reality, which varies by customer, use occasion, and operating environment
• Factors to Consider for Differentiation

  • Valuable
  • Important
  • Distinctive
  • Superior
  • Emotional
  • Communicates
  • Preemptive
  • Affordable
  • Profitable
• Diversification


  An act of an existing entity branching out into a new business opportunity. This corporate strategy enables the entity to enter into a new market segment which it does not already operate in
• Why Do Companies Diversify?

  • For growth in business operations
  • To ensure maximum utilization of the existing resources and capabilities
  • To escape from unattractive industry environments
• Advantages of Diversification


  • As the economy changes, the spending patterns of the people change. Diversification into a number of industries or product line can help create a balance for the entity during these ups and downs
  • There will always be unpleasant surprises within a single investment. Being diversified can help in balancing such surprises
  • Diversification helps to maximize the use of potentially underutilized resources
  • Certain industries may fall down for a specific time frame owing to economic factors. Diversification provides movement away from activities which may be declining
• Disadvantages of Diversification


  • Entities entirely involved in profit-making segments will enjoy profit maximization. However, a diversified entity will lose out due to having limited investment in the specific segment. Therefore, diversification limits the growth opportunities for an entity
  • Diversifying into a new market segment will demand new skill sets. Lack of expertise in the new field can prove to be a setback for the entity
  • A mismanaged diversification or excessive ambition can lead to a company over expanding into too many new directions at the same time. In such a case, all old and new sectors of the entity will suffer due to insufficient resources and lack of attention
  • A widely diversified company will not be able to respond quickly to market changes. The focus on the operations will be limited, thereby limiting the innovation within the entity
• Types of Diversification Strategies

  • Horizontal Diversification
  • Vertical Diversification
  • Concentric Diversification
  • Conglomerate Diversification
• Horizontal Diversification


  This strategy of diversification refers to an entity offering new services or developing new products that appeal to the firm's current customer base
• Vertical Diversification


  Takes place when a company goes back to a previous or next stage of its production cycle. It may be forward integration or backward integration
• Concentric Diversification


  The entity introduces new products with an aim to fully utilize the potential of the prevailing technologies and marketing system
• Conglomerate Diversification


  An entity launches new products or services that have no relation to the current products or distribution channels. A firm may adopt this strategy to appeal to an all-new group of customers
• Proxy Firm


  A company already dealing in that new line of business
• Business Risk


  The exposure a company or organization has to factor(s) that will lower its profits or lead it to fail
• Internal Risks


  • Budget & Risk Appetite
  • Internal Readiness
  • Proven Model
  • Opportunity Cost Risk
• External Risks


  • Geopolitical & Macroeconomic
  • Regulatory & Legislative Risk
  • Competition
  • Security Risks
• Mixed Internal-External Risks


  • Product-Market Fit
  • Cultural Risks
  • Partner Risks
  • Decision Paralysis
• International Market Expansion


  Taking your business operations to a new country. It refers to setting up a legal entity in a foreign land and conducting business from there
• Going Global


  A strategic maneuver opening the next chapter for many organizations seizing the moment to expand their global footprint
• International Market Expansion Tips, Practices and Attitude

  • Let your local team audit—and adapt
  • Strike while it's hot—but keep your reputation strong
  • Just do it
  • Match your business model with your mode of entry
• Strategies for International Market Expansion

  • Look for Partners
  • Give it Time
  • Test the Waters
  • Keep an Eye Out for Local Talent
  • A Strong Domestic Market
• Six Entrepreneurial Strategies


  • Study the competition
  • Conserve cash no matter how good business is
  • Research new products and services
  • Don't tackle huge markets at first
  • Listen to customer feedback and adapt
  • Respond to change
• Competitive Dynamics


  A term used to describe a gamut of actions and reactions of firms taking part in a competitive business environment
• Drivers of Competitive Behavior / AMC MODEL

  • Awareness
  • Motivation
  • Capability