1. Strategic Management B O S

2. Today’s Agenda Porter’s Five Forces Porter’s 4 Generic Strategies
Attractive vs. Unattractive industries
Porter’s 4 Generic Strategies
Differentiation
Cost-Leadership
Focused Differentiation
Focused Cost-leadership
Class Activity
Review

3. Entering the Rubber Ducky Market

4. Industry Model Industry Competition:
Intensity of rivalry among firms in the industry
Suppliers:
Bargaining power of suppliers
Substitute Products:
Threats of substitute products or services
Customers:
Bargaining power of buyers
New Entrants:
Threat of potential new competitors

5. “Is this an attractive industry or not?”

6. Attractive vs. Unattractive

7. How broad or narrow is your market or target market?
Source of competitive advantage
Will you compete for competitive advantage by lower price or by product uniqueness?
“How can we best compete for customers in this industry?”
How broad or narrow is your market or target market?
Market scope

8. Porter’s Generic Strategies

9. Differentiation

10. Cost-Leadership

11. Focused Differentiation

12. Focused cost-leadership

14. Activity:
1) For companies such as Coke and Pepsi, which of the 4 strategies have their companies used to gain a competitive advantage over their rivals?

15. Activity:
2) What is the difference between unattractive and attractive industry?

16. 3) How many forces are there?

17. 4) What is a market scope?

18. 5) What are the 4 different strategies?

19. 6) If a company wants to be more cost effective, which strategy should they use?

20. 7) What are the two main factors to consider before implementing strategies?