STRATEGIC CHOICES FOR COMPETITIVE POSITIONING Strategy Gargi Chugh November 2016

INCREASING ROI

How to win in my chosen battlefield?

Strategic choices

Sources of Superior Performance Above Normal Profits (in Excess of the Competitive Level) Avoid Competitors Be Better Than Competition Attractive Industry Differentiation Advantage Cost Advantage Entry Barriers gc/ strategy/nov 16

SOURCES OF COMPETITIVE ADVANTAGE COST ADVANTAGE DIFFERENTIAL ADVANTAGE SIMILAR PRODUCT AT LOWER COST PRICE PREMIUM FROM UNIQUE PRODUCT gc/ strategy/nov 16

Generic strategies Porter introduced the term ‘Generic Strategy’ to mean basic types of competitive strategy that hold across many kinds of business situations. Competitive strategy is concerned with how a strategic business unit achieves competitive advantage in its domain of activity. gc/ strategy/nov 16

Porter’s Generic Strategies Cost Advantage Lower Cost Differentiation Broad Target 1. Cost Leadership 2. Differentiation Competitive Scope 3B. Differentiation Focus Narrow Target 3A. Cost Focus gc/ strategy/nov 16 Figure 4

gc/ strategy/nov 16

Key Points Three elements of strategic choice Competitive strategy Direction of development Method of development Four categories of development directions Market Penetration Product development Market development Diversification

Thank you  Gargi Chugh