BASICS OF STRATEGIES IN

CORPORATE WORLD

Satwinder Kaur Gill

Netaji Subhash Institute of Business Management
(NSIBM, Pokhari)
Contact Details:-09472781717
Email Id:-satti.gill06@gmail.com
 Introduction

It is very necessary to know the root level of anything. Then how

can a business be untouched of it?

Basics of strategies in corporate world helps to know all about

what is strategy, where to implement the strategies, which strategy
may work in certain situation, how to analyse about corporations
own business or businesses before building strategies and many
more.
 Basics of strategies in corporate world
Some firms enter and very soon exit from the
market and the people rarely get aware about it.

Every year around hundreds of firms start its

business, but in this cut and throat competition
only few manage to survive.

As per the research and studies, any business

with particular product follows the under given
stages.

Shown here is the product lifecycle, but most of

brands start and end up in first stage only.
Growth of any firm is very much dependent on
the strategies that it builds. Uttering a word
Corporate strategy gives a vague idea in mind.
 Different views of people towards planning and strategy:-
1. Planning and strategies are same.
2. Planning and strategies are different things.
3. Planning and strategies are related to each other.
4. Strategy is a part of planning itself.

Strategy is made to reach two objectives:-

Competitive advantage and growth.
 Corporations can success only if :-
1. They have sound infrastructure.
2. They have chosen a lucrative segment.

But a business could expand its lifespan, only if:-

1. They are well confined and clear with the strategies they
make.
2. Ample capital to invest in.
3. Deep market penetration.
4. Advance technology.
5. Updating in every aspect and so on.
It has been found that the
way to corporate
strategies follow this way
 Corporation strategies

Corporate would build three main strategies:-

1. Growth Strategy.

2. Contraction/Defensive Strategy.
Growth strategies
The Growth Strategy is made for the business if:-

1. Existing business working far well in that segment or

2. Segment is lucrative enough for investing in.

3. Business desiring to enter into new market for penetrating.

4. If business want to handle more knots of value chain.

5. When an organisation want to start new business etc.

Continue..
Growth strategy can help in following ways-
1. Increase revenues,
2. Number of employees,
3. Market share.

Growth in a business can be done by-

1. Single product specification
2. Integration
Vertical- forward and backward
Horizontal
3. Diversification
Related
Unrelated
Contraction/defensive strategy
Contraction strategies are followed in any of the below situations
like :-

1. Businesses is not doing well.

2. Risk will be high in business in near future.

3. Segmentation is becoming non lucrative, so less market potential.

Excessive competition in market etc.

4. decrease the size or scope of operation for an organization either at

the corporate level or business level.

5. It includes harvesting, divestiture, retrenchment and liquidation

Intensive strategy

1. Market development
2. Product development
3. Market penetration
 New Product Development

When the particular mother brand develop their own brand organic
growth.
In business, new product development (NPD) is the complete
process of bringing a new product to market. A product is a set of
benefits offered for exchange and can be tangible (that is, something
physical you can touch) or intangible (like a service, experience, or
belief). There are two parallel paths involved in the NPD process:
one involves the idea generation, product design and detail
engineering; the other involves market research and marketing
analysis.
Continue

In new product development we have to go through these processes:-

1. Idea Generation- Focus Group, Depth Interview, Delphis discussion.
2. Idea Screening- Cost-Benefit analysis, Unique Performance, Competitions.
3. Concept Development- Brand and Product Mapping.
4. Concept Testing.
5. Product Development.
6. Product Testing- Alpha and Beta Testing.
7. Test Market.
 Feedback
Feedback is collected only from the Target Audience. The product
finally comes to market when feedback is seen as:-

(T=trial, H=high, L=low, P=purchase)

HT+HP

LT+HP

HT+LP

LP+LP

Non users(NU), (First time)Mini users(FU),Major users(MU)

 Commercialization

If the product pass the test market, that is feedback is (HT+HP), then
the product will be launched for Commercial Use.

Now the question arises whether the brand would launched the
product

State wise(region wise) or

Nation wise or

Internationally.
 Boston consulting group matrix
Business organisations while making strategies search out the business which
serves as cash in - flowers for them. They analyse which business is to
integrate, diversify, grow or contract.
As per given below matrix:-
1. Cash Cow are the brands which bring cash for company.(Industry prospect
dull, Brand get the highest Market share)
2. Star.(Industry prospect bright, Brand get the highest Market share)
3. Dogs are those brands .(Industry prospect dull, Brand also loosing market
share & sales)
4. Problem Child .(Industry prospect bright, but the performance of the
Brand is worst).
 Five force model of Porter

As per this model, five things go be observed carefully by the

organisation before entering into particular business:-
1. Suppliers Bargaining Power
2. Customer Bargaining Power
3. Substitute Power
4. Entry/Exit of barriers
5. Competition
THANK YOU