Professional Documents
Culture Documents
• MARKETING STRATEGY
• FINANCIAL STRATEGY
• OPERATIONS STRATEGY
• PURCHASING STRATEGY
• LOGISTICS STRATEGY
CUSTOMERS
EXISTING NEW
EXISTING - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
MARKET MARKET
PENETRATION DEVELOPMENT
PRODUCTS OR ---------------------------------------------
SERVICES
PRODUCT DIVERSIFICATION
DEVELOPMENT INNOVATION
NEW ---------------------------------------------
MARKETING STRATEGIES:
THE CUSTOMER-PRODUCT DECISION
RESOURCE ALLOCATIONS
– Dividends, Stock Price, & Reinvestment
• Reinvest earnings in fast-growing companies
• Keeping the stockholders contented with consistent dividends
• Use of stock splits ( or reverses) to maintain high stock prices
• Tracking stock keeps interest in company, but doesn’t allow takeover
RESEARCH & DEVELOPMENT STRATEGIES
• LEVEL OF INNOVATION
– Pioneer (Leader) v. Copy Cat (Follower)
• Technological leadership fits well with differentiation
• A “follower” strategy makes sense with cost-leader strategies
• Are we better at finding applications and customer adaptations
than actually inventing something really new?
– Different types of R & D (basic, product, process)
• Where is the firm’s historic expertise / advantage?
• How competent are the R & D Personnel?
• ACQUISITION OF TECHNOLOGY
– Internally developed v. acquired from outside
• Technology “Scouts”
• Strategic Technology Alliances
• Acquire minority stake in promising high-tech ventures
OPERATIONS STRATEGIES
• MANUFACTURING LOCATION
– Internal Production v. Outsourcing
• SYSTEM LAYOUT
– Product v. Process Layouts
• Job Shops v. Mass Production
• Job shop/small batch production fits well with a differentiation
strategy
• Continuous production / dedicated transfer lines helps achieve
cost leadership
• Use of robots and CAD/CAM v. Labor intense manufacturing
• Modular Manufacturing and just-in-time delivery of sub-
assemblies
• Continuous improvement systems lower costs and increase
quality
PURCHASING STRATEGIES
• TALENT ACQUISITION
– Recruit from Outside v. Internal Development
– Require experienced, highly-skilled workers v. “we will train you”
– Offer “top dollar” wages & benefits v. mentoring and a career
• WORK ARRANGEMENTS
– Individual Jobs v. Team Positions
– Narrowly-defined jobs v. Positions with discretion and autonomy
– On-premises Work v. Telecommuting Options
KEY TO SUCCESS:
ONLY OUTSOURCE ACTIVITIES THAT ARE NOT RELATED TO THE FIRM’S
DISTINCTIVE COMPETENCIES
DUMB STRATEGIES