Marketing Strategy: A Complete Information

What is Strategy? Management's plan to attain outcomes consistent with organizational mission & goals, is meant by a strategy. What is Strategic Management? Process of determining organisational mission and goals of an organisation within the context of the internal & external environment assessment, formulating and implementing strategy by exerting strategic control for successful achievement of goals. In this article I've explained detail about strategy management, strategic formulation, different levels of strategy, etc. 

Deviations in Strategy:

• Intended V/s Realized strategy
• Why does this happen?
• Unforeseen changes in the operating environment (internal & external)
• Incorrect assessment in the SWOT stage

Successful Strategy:

• Managers thoroughly understand the competitive environment
• Mission and Goals have to be Simple & Consistent with
• Objective assessment of organizational  capacity & resources

Strategy Management Framework:

Strategic Analysis

• Environment Analysis: It identify opportunities and threats
• Resource Analysis: It identify strength and weakness
• Stakeholder Analysis: It shows the direction for mission and vision

Levels of Strategy

Three levels of strategy:

1. Corporate Level:
• Take decisions about mission and vision of the organization
• Take decisions about the SBUs and resource acquisition, allocation and control
• Manage the stakeholder
2. Strategic Business Unity:
• Decision about all the activities which are done to satisfy product / service requirement or to reach the customer
• RM --> Assemble --> Sales --> Customer
• Ex: Telco, it produces truck, bus etc.
• Truck is a SBU of Telco
3. Operational Level:
• Take decisions about the implementation of a decision
• Take decisions about the price and performance
• Ex: whether to collect information or not: corporate decisions
• Ex: who collect and how to collect information: operational decision

Steps in Strategic Formulation:

• Selecting the vision, mission, and values and the major goals and objectives
• Analyse the external competitive environment to identify opportunities and threats
• Analyse the organization's internal environment to identify its strength and weaknesses.
• Builds on strengths, corrects its weaknesses to take advantage of external opportunities and counter threats
• are consistent with the organization's vision, mission and major goals and objectives
• Check if the strategy will lead to viable business or enterprise model
• Implement the strategy (Define, Measure, Analyse, Improve and Control)

Value System:

Stakeholder Analysis:

The BCG Matrix

Corporate Strategy

Cash Cows:

• Industry growth rate low, relative market share is high
• Generation of cash & profits
• Cash demand from the business is low
• Provides financial base of the company
• Source of funds for other businesses
• Mature businesses - hence, they decline

Stars:

• Relative market share is high in a fast growing industry
• Generate large amounts of cash
• Need sustained investments in the business
• Consolidating competitive position through investments
• Best investment opportunity for growth

Question Marks:

• Low relative market share in a high growth industry or segment
• Internal cash generation low
• Need for fresh investments high
• Companies may invest more or divest them
• Potential to become a star

Dogs:

• Industry growth rate low & low relative market share
• Low market share means low profits
• Net cash flow is negative
• Large amount of cash required to maintain competitive position
• Liquidate, harvest or divest options

Ansoff's Product-Market Grid

The GE Model

Market Attractiveness are:

• State of competition
• Government policies
• Return on investment
• Rate of technology and development
• Market growth
• Other environmental forces

SBU Strengths:

• Research and development
• Market share
• Product quality and finance
• Brand image, production capacity
• Managerial personnel