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Corporate and business strategy - Coggle Diagram
Corporate and business strategy
Boston matrix
What is it
Star - high market share, high market growth
Question mark - High maket growth, low market share
Cash cow - high market share, low market growth
Dog - low market share, low market growth
Issues
Vagueness
Motivation problems
Ignores commercial linkages
Business strategy
Competitve strategy - what SBUs do and how
Corporate strategy
Overarching direction - what we do and who we are
Strategic buisness units
What is it
Supply goods or services for a distict domain
purpose
Decentralise initiatve to smaller units
Allow larger business to vary their buisness strategy
Cost leadership strategy
What is it
Be lowest-cost organisation in doamin of activity
Key drivers
Low input cots
Economies of scale
Experience
Risks
Subsitites may emerge due to innovation
Competitiors may immitate
Ensure value remains at accpetable level
Benefits
In price war, cost leadership will be last standing
Likely to have large market share
insulated from threat of powerful suppliers
Differntiation strategy
What is it
Creating a uniqueness that allows for a premium price
Benefits
hard to copy by other suppliers as unique or special
Less htreatened by suppliers price increases
Creates customer loyalty
Risks
Focus of competiton may swtich to price
ensure costs dont rise too high
Focus strategy
What is it
Targets a small segment or domain of activity and tailors its products to that specifc segment
Types
Cost-focus
Differentiation focus
Stuck in the middle
Porter argues:
best to choose which stratgey then stick to it rigorously
Failure to do this leads to stuck in the middle
But:
Stategies can be combined
Competitive fasilures
Hybrid strategies
Ansoffs matrix
Market penatration - exisiting product in exisiting market
Market development - Exisiting product in new market
Product development - New product in exisitng market
Diversification - New product in new market