Strategic Management 1

• Strategy


  The creation of a unique and valuable position, involving a different set of activities
• Strategy


  The blueprint for how a business will compete in the marketplace, including its goals and objectives
• Strategy


  The schematic, the framework for how an organization will operate
• Strategy


  Guides every aspect of how the firm conducts business
• Strategy is applicable for all types of business
• Strategy is not the organization's operations
• Strategy is about choosing a different set of activities that deliver a unique mix of value
• Strategies are not the organization's objectives
• Difficult choices related to strategy


  • What is your winning aspiration?
  • Where will you play?
  • How will I win?
  • What capabilities must be in place?
  • What management systems are required?
• Winning aspiration


  A clearly delineated picture of the desired future position of the organization
• Where to play


  Which market, segment, and customers to focus on
• How to win


  What makes the product or service unique and preferable to customers
• Core competencies


  The strengths and capabilities that enable an organization to differentiate its products or services from competitors
• Management systems


  The systems required to support the organization's strategic direction and align the entire operation
• Strategic planning process


  1. Plotting a course toward a brighter future

  2. No perfect system, organizations can choose from various models
• Vision statement


  Envisions the future by creating a mental image of the desired future position of the organization
• Mission statement


  Describes how the vision will be achieved
• Google's corporate values


  • Follow the user and all else will follow
  • It's best to do one thing really, really, well
  • Democracy on the web works
  • You can be serious without a suit
  • Great just isn't good enough
• Clearly defined values help guide a company and attract people who share those values and fit with the company's culture
• Industry analysis


  The process of examining and evaluating the dynamics, trends, and competitive forces within a specific industry or market sector
• Data Collection and Research

  1. Primary Research: Gathering data directly from industry sources, stakeholders, and potential customers through methods like surveys, interviews, focus groups, and observations.

  2. Secondary Research: Analyzing existing literature, reports, and publications related to the industry.
• Identifying Relevant Industry Metrics

  1. Market Size: Determining the overall size of the market.

  2. Market Growth Rate: Assessing historical and projected growth rates.

  3. Market Share Analysis: Analyzing market share among industry players.

  4. Market Segmentation: Segmenting the market based on demographics, geography, behavior, or other criteria.
• Gathering Competitive Intelligence


  1. Competitor Identification: Creating a comprehensive list of primary and potential competitors.

  2. SWOT Analysis: Conducting a thorough analysis of competitors' strengths, weaknesses, opportunities, and threats.

  3. Market Share Analysis: Determining the market share held by each competitor and how it has evolved over time.

  4. Product and Pricing Analysis: Evaluating competitors' product offerings and pricing strategies.

  5. Marketing and Branding Strategies: Examining the marketing and branding strategies employed by competitors.
• Industry analysis serves as a vital tool for businesses and decision-makers to gain a deep understanding of the environment in which they operate.