BUSINESS UNIT

STRATEGIES
Types of business strategies
Porters generic Strategies
Industry life cycle strategies
Miles and Snows adaptation model
Game theory model
Warfare strategies (also called
tactics)
Blue Ocean strategy
 Types of Business unit
strategies
Porter: cost leadership,
Differentiation , Focus
Life cycle: Introduction, Growth ,
maturity Decline
Miles and snow: Defender, Analyser,
Prospector, Reactor
Game theory: simultaneous,
sequential, Repeated
Game rules; timeframe, information,
level playing
 Warfare Strategy: Defensive.
Offensive, flanking, guerrilla
Blue Ocean - out of box thinking
Porters generic strategies
 Miles and snow typology
Defender strategies:
defender strategy attempt to protect
their market from new competitors.
Focus on improving efficiency not innovation
Prospector Strategy.
Organizations implementing a
prospector strategy are innovative, seek
out new opportunities, take risks and
grow. Eg: 3M- innovation strategy
 Analyzer Strategy.Organizations implementing
analyzer strategies attempt to maintain their
current businesses and to be somewhat innovative
in new businesses
Amul vs knwality
Reactor Strategy. Organizations that follow a
reactor strategy have no a consistent strategy-
structure relationship. Rather than defining a
strategy to suit a specific environment, reactors
respond to environmental threats and
opportunities in ad hoc fashion.
ambassdor
Warfare strategies
COMPETITIVE TACTICS
Tactic - a specific operating plan that contributes to
strategy implementation in terms of when & where it
should be put into action.
Link between strategy formulation & strategy
implementation.
Classified as : Timing tactics , Market location
tactics.
 Timing the tactics
When to compete
First mover
a. Manufactures & sells product
b. Establishes reputation as leader in market &
cost
c. Establishes standards and gain market share
 Location tactics
Where to compete : Classified into Offensive & Defensive tactics
Offensive tactics:
Offensive Tactics are :

a. Frontal attack

b. Flanking Maneuver

c. Bypass attack

d. Encirclement

e. Guerilla warfare
Frontal attack : Expensive tactic involving huge resources ,sustained efforts ,fights against
competitors in terms of price ,promotion & channels.

Ex : Nirma against HLL.

Flanking Maneuver : Attacks competitors weaker section

Ex : Cyrix Corporation against Intel microprocessor.

Bypass attack : No direct attack is involved instead they change the rule of the game .

Ex : Offering a new product which makes competitors product unnecessary.

Encirclement : Attacking the competitor with a variety of products in varied price ranges.

Ex : Microsoft in internet .

Guerilla warfare: No direct attack.They hit & run very often.Gain is small.Normally new
entrants & small firms prefer this tactics.

Ex : Indian companies like Ganga & pure water against national brands such as Parle,Bisleri &
Acquafina.
Defensive strategies are .

Raising structural
barriers

Increasing expected
retailation

Lowering the
inducement for attack
 for attack
Measures reduction in future profit in industry inducement
Entry of new entrants is reduced if profit rate is low. Lower the
Retaliation
Increases perceived threat of retaliation from an Expected
established player Increase
Offer full line of products for a particular segment.

Barriers
Control over technologies through patents & licence.
Tie up with suppliers
Structural
Limiting outside access to facilities & key people.