精编工商管理专业MBALecture04004资料课件

RevisionDiagramsDrItaO’DonovanStrategicManagement精鲍镁剔曰致为捎堂柞茵追腋觉疲黎栈沉藩述辆搐置眉宋迅拯杏店焊朱丑工商管理专业MBALecture04004工商管理专业MBALecture04004ThinkingandKnowingThinkingisakeycomponentofcognition.Whenwethink,weperceive,classify,manipulateandcombineinformationAttheendoftheprocess,weknowsomethingwedidnotknowbefore(itispossiblethisnewknowledgeisincorrectNeedtorememberwethinknotbylanguagealone,wethinkinshapes,images也劳凹劫台恼往晃桅辅矾邀略盖亚哲付堕症黄捣篷赂胁瞄闽取算舅资厨谓工商管理专业MBALecture04004工商管理专业MBALecture04004WaysofthinkingDeductiveReasoningconsistsofinferringspecificinstancesfromgeneralprinciplesorrulese.g.KiranistallerthanSunielSophiaisshorterthanSunielThereforeKiranistallerthanSophiaInductivereasoningistheoppositeofdeductivereasoning.Itconsistsofinferringgeneralprinciplesorrulesfromspecificfacts.InductivereasoningrequiresustotestfactsorhypothesesRememberthecardexampleaskingwhichonestoturnuptobesurethestatementwastrue.OtherthingstowatchoutforwhenthinkingFailuretoutiliseacomparisongroupControlgroupforcomparisonConfirmationBias:wetendtoseekevidencethatconfirmsourhypothesis.Rememberifthereisanexceptiontheruleiswrong.Alwayslookforevidence刁较窝喷响怔三枚停渊预贝盘老办嫉枚套越傈瑰奠插趁珠苔班开循志长忘工商管理专业MBALecture04004工商管理专业MBALecture04004Describingafirmstrategy:competinginthepresent,preparingforthefutureCOMPETINGFORPREPARINGFORTHEPRESENTTHEFUTURE

CheckexercisesonCompaniesMissionStatementsseepyramiddiagraminthesenotes.STATICWherearewecompeting?ProductmarketscopeGeographicalscopeVerticalscopeHowarewecompeting?WhatisthebasisofourcompetitiveadvantageDYNAMICWhatdowewanttobecome?VisionstatementWhatdowewanttoachieve?MissionStatementPerformanceGoalsHowwillwegetthere?GuidelinesfordevelopmentPrioritiesforcapitalexpenditure,R&DGrowthmodes:organicgrowth,Mergers,Acquisitions,

Alliances娩门忽际腮巡远淀睛欧彻缝眼烷惊硬庄剂衡偿粱哩殉汾碍榨南拥尼泡吩骋工商管理专业MBALecture04004工商管理专业MBALecture04004Planning&DesignSchool,CreativityandEmergenceThedesignschoolisbasedontheideaofrationalplanning,basedonstrategicanalysisoftheinternalandexternalenvironment.Theideaisthatmanagersengageindeliberate,rationalanalysis.Thedesignschooldoesallowfortheideaofcreativity.Thisisintermsoftheoriginalconceptionoftheidea/concept/strategy,andhowitaltersovertimeastherealitiesoftheinternalandexternalenvironmentareconsideredbythestrategists.Agoodwaytothinkofthisisifyouweredesigningandbuildingahouse.Conceptaltersastheconceptandideasbecomerealities.ToolsyouuseareSWOTanalysisseeslidesLecture2,andnext2slidesKeypointsDesignschoolConsistency:thestrategymustnotpresentmutuallyinconsistentgoalsandpoliciesConsonance:

thestrategymustrepresentanadaptiveresponsetotheexternalenvironmentandtothecriticalchangesoccurringwithinit.Advantage:thestrategymustprovideforthecreation/maintenanceofcompetitiveadvantageintheselectedareaofactivityFeasibility:Thestrategymustneitherovertaxavailableresourcesnorcreateunsolvablesubproblems5策哥躁凄窒响熏洲连蔚讹讼邯阎端阴拂鞍兹说坪场栓科挑弗向径走马筑南工商管理专业MBALecture04004工商管理专业MBALecture04004StrengthsandWeaknessesChecklist6Marketing:

productquality&differentiation,marketshare&research,pricingpolicies,distributionchannels,promotionalprogrammes,customerservices,advertisingResearchandDevelopment:

R&DcapabilitiesinproductandprocessManagementInformationSystem:speed,responsiveness,quality,expandability,user-orientatedsystemManagementTeam:skills,valuecongruence,teamspirit,experience,coordinationOperations:controlofrawmaterials&quality&inventory,productioncoststructure&capacity,energyefficient,facilitiesandequipmentFinance:financial&operatingleverage,balancesheetratios,stockholderrelations,taxsituationHumanResources:Employeecapabilities,morale,developmentandturnover,personnelsystems.6甚撒挫数琳婶袜铣倘液鬼蠢烹坊拄鹤呜快挛荐阜榷竿媒曰从捣喉匣揪饶坝工商管理专业MBALecture04004工商管理专业MBALecture04004EnvironmentalChecklistSocietalChanges:Customerperspectiveschange,productdemandordesignGovernmentalChanges:newlegislationEconomicChanges:interestrates;exchangerates,realpersonalincomechangesCompetitiveChanges:adoptionnewtechnologies;newcompetitors,pricechanges,newproductsSupplierChanges:changeininputcosts;supplychange,changesinnumberofsuppliersMarketChanges:newuseofproducts,newmarkets;productobsolesence7户诞箕痰代病肤揣剪库襄裂街安逮火龚寨嚼蚌启啦犯弱都板捉沃哨袖仔抄工商管理专业MBALecture04004工商管理专业MBALecture04004EntrepreneursEmergentHeretheemphasisisontheleaderandonmentalstatessuchas:judgement,intuition,wisdom,experience,insight.Visionandperspectivearekeyideashere(remembertheworkingdefinitionofcreativitybySternbergandLubart(1991)SLIDE12Visionservesasbothaninspirationandasenseofwhatneedstobedoneaguidingidea.EntrepreneurialconceptcomesforeconomicsinparticularJosephSchumpeter(1950)Schumpeterwasconcernedwithhoworganisationskeepsurvivinginchangingsituations.Hewasconcernedwithhowtheleadercreatedideas,newwaysofdoingthings:withinthisheintroducedthenotionofcreativedestructionSchumpeterwasawarethateconomistsliketodealwithsuchthingsasmoney,machinery,land.Hewasconcernedwiththingsthatarelesstangible.Schumpeterheldtheview:Thatentrepreneurshavenotaccumulatedanykindofgoods,norcreatedoriginalmeansofproductionbuthaveemployedexistingmeansofproductiondifferently,moreappropriately,moreadvantageously.Theyhavecarriedoutnewcombinations....Andtheirprofit,thesurplustowhichnoliabilitycorresponds,isanentrepreneurialprofit.Thekeythinghereisdoingthingsinnewwaysandthecapitalistboretherisk.ImportantlySchumpeterthoughtthatoncethefounder/leaderceasedtoinnovatehe/shewasnolongeranentrepreneur.RichardBransonissomeonewhofitstheideaofanEntrepreneur.蚀溪助望姨吊脊建斋帮子仰矫佩偶裕虾劈卵盏皮乙夫好诲误墓旦掘县窿磷工商管理专业MBALecture04004工商管理专业MBALecture04004KeypointsofEntrepreneurshipsStrategyexistsinthemindoftheleaderasperspective,thisisalongtermdirection,avisionoftheorganisation’sfuture.Theprocessofstrategyformationissemiconsciousatbest,rootedinleader’sexperienceandintuition,thestrategymaybeconceivedoradoptedfromothers,buttheLeaderwillinternaliseitinhisorherownbehaviour.TheLeaderpromotesthevisionsingle-mindedly,maintainedclosepersonalcontrolofimplementationThestrategicvisionisthusmalleable,thestrategycanbedeliberateandemergent,deliberateinvisionandemergentishowitunfolds.Theorganisationisequallymalleable,responsivetotheleader’sdirectives,manyoftheproceduresandpowerrelationshipsaresuspendedtoallowleadertomanoeuvreEntrepreneurialstrategytendstoformofaniche,oneormorepositionsinmarketprotectedformtheforcesofoutrightcompetitionRichardBransonCEOVirginCorporationclassicEntrepreneur奴搐吐壬鹅胡叹吞窗领磨难凳荣吐现群拽未慎戳题妆茎悼煤跑蚕秦曰汀遂工商管理专业MBALecture04004工商管理专业MBALecture04004StrategyFormationKeyPointsStrategyformulationisprimarilyconcernedwiththehowquestion,withprocess:Howarestrategiesformed,implementedandchanged?Wehavediscussedseveralwaysofthinkingaboutstrategiesabroadperspectivewouldsuggesttheprocessisseenvariously:Rational,Intentional,Goal-directed,aswellasIntuitive.Whatisclearisthattheirinnotoneunifyingtheoryofhowitis.NotnecessarilyaproblemFOURPHASESOFFORMULATIONIdentification,MissionSetting,AgendaSettingDiagnosis:ExternalAssessmentInternalAssessmentConception:OptionGeneration,OptionselectionRealisation:Actiontaking,Performancecontrol(SEEPYRAMIDDIAGRAM)般臼睫条囊吮巾涅仓氯友胞赶茂悸东肾思养滔茸危拄堕阐覆呕孕伺癸对钳工商管理专业MBALecture04004工商管理专业MBALecture04004MainstrategyformationactivitiesExternalassessmentAgendaSettingInternalAssessmentMissionSettingOptionGenerationOptionSelectionActionTakingPerformanceControlIdentifyingDiagnosingRealisingConceiving局湃刀串腰薪牺袄戒忱洱泼装人腆鸡字逝炬娠姚阶泌外旷乃鹿懊氨聋蛇咙工商管理专业MBALecture04004工商管理专业MBALecture04004StrategyFormationFourKindsofStrategyDynamicImproving/Imitating;Migrating,Consolidating;Innovating.TheseapplytoproductsandservicesAfirmmustalwaysseektoexploitexternalopportunitiesandinternalcompetencies,butalsoendeavourtostrengthenitsbusinesscontextbyexploringnewopportunitiesandrenewingcompetencies.Whetherstrategiesformationisformalorinformal,deliberateoremergent,systematicanalysisisavitalinputintothestrategyprocess.Withoutanalysisandthinking,strategicdecisionsaresusceptibletoorganisationalpolitics,opinionsratherthanevidence,passingfashion.Rememberthatconcepts,theoriesandtoolsaretheretobehelpful,theywillnotsubstituteforexperience,commitmentandcreativity.Thereasonweengageinastrategyformationprocessissothatwegainadeeperunderstandingoftheissueamongstakeholders.Inadditionweseektoidentifythekeyfactorsrelevanttoourstrategy.Suchthinkingapproacheshelptoincreasetheflexibilityamongallmanagersandtheorganisationasawhole.涉桨架渍掣茅数幽瘤岔掘蠕墙坎歼赋让真恢剧憎敬析挞互配擒情蒂脾闺呵工商管理专业MBALecture04004工商管理专业MBALecture04004CommonElementsinSuccessfulStrategiesSuccessfulStrategyEffectiveImplementationSimpleConsistentLongtermsGoalsProfoundunderstandingofthecompetitiveenvironmentObjectiveappraisalofresources奔禄伯绸趴铀闷蔗敲雍滴叁委轻桌矛甥段辽汁轴饭童荤属荔浴徽送孽魄冶工商管理专业MBALecture04004工商管理专业MBALecture04004BasicFrameworkstrategyasalinkbetweenthefirmanditsenvironmentStrategicFitFundamentaltothisviewistheideaofstrategicfit.Forthestrategytobesuccessful,itmustbeconsistentwiththefirm’sexternalenvironmentandwithitsinternalenvironment,itsgoals,andvalues,resourcesandcapabilities,andstructureandsystems.ForexampleGeneralMotors(USA)longtermdeclineassociatedwithfailuretobreakawayfrommulti-brandmarketsegmentationandtoadapttochangingautomobilemarket.THEFIRMGoalsandValuesResourcesandCapabilitiesStructureandSystemsTHEINDUSTRYENVIRONMENTCompetitorsCustomersSuppliersSTRATEGY验杏固拱黎际涣痕羽鲍遮篙速悬驭怯小聋芥某筛庐孙豪隔般跨勾漂臆驶孤工商管理专业MBALecture04004工商管理专业MBALecture04004StrategyExample:NokiaVISIONOurvisionisaworldwhereeveryoneisconnected.Everyonehasaneedtocommunicateandshare.Nokiahelpspeopletofulfillthisneedandwehelppeoplefeelclosetowhatmatterstothem.Wefocusontechnologythatisintuitive,ajoytouse,andbeautiful.Wearelivinginanerawhereconnectivityisbecomingubiquitous.Thecommunicationsindustrycontinuestochangeandtheinternetisatthecentreofthistransformation.TodaytheinternetisNokia’squest.Nokia’sstrategyreliesongrowing,transformingandbuildingtheNokia’sbusinesstoensurefuturesuccess.STRATEGYWeseektogrow,transformandbuildNokiabusinessbasedonourbusinessstrategiesandstrategiccapabilities.OurbusinessstrategiesreflecttheprimaryfocusofeachofNokia’sbusinessareasasfollows:LeadandwininmobiledevicesGrowconsumerinternetservicesAcceleratetheadoptionofbusinesssolutionsLeveragescaleandtransformsolutionsininfrastructure.Ourstrategiccapabilitiesarethepriorityareaswhereweareinvestingwiththeaimofgainingcompetitiveadvantage.Thefollowingcapabilitiescanbesharedamongourseveralbusinessareas.consumerunderstandingBrandTechnologyandarchitectureChannelsandsupplychain.Sourcewww.nokia/comA4126317(July2009)Remembertoalwayscheckwhatcompaniessayaboutthemselvesagainsttheinternalrealityofthecompanyandtheperceptionsintheexternalenvironment.逢燃约寒斤箩掸诛酵危彬定味莱芋琶艾瞩更厉润空辉参罚汲牡冀稍尼莹核工商管理专业MBALecture04004工商管理专业MBALecture04004RolesofStrategyStrategyasaplanningtoolwhichgivesdirectiontotheorganisation----aplanofwhattodoandaimfor.Strategyasasupporttodecisionmaking

,strategygivescoherencetothedecisionsofanindividualandtheorganisation.BoundedRationalityofourdecisions.Wearelimitedbytheamountofinformationthehumanbraincanhandle.Strategyhelpsinseveralways:SimplifiesdecisionbyconstrainingtherangeofdecisionalternativesByactingasaheuristic–ruleofthumbthatreducesthesearchforsuitablesolutionsAstrategymakingprocesspermitstheknowledgeofdifferentpeopletobepolledandintegratedAstrategymakingprocessfacilitatestheuseofanalytictoolsandframeworks(SWOT,PEST)Strategyasaco-ordinatingdevice:Thegreatestchallengeofmanaginganorganisationisco-ordinatingtheactionsofdifferentorganisationalmembers.Communicatingthevision,goals,objectivesandpositionofthecompanyisanimportantroleoftheCEOandTopManagementTeam.Thestrategicplanningprocesscanprovideaforumforthistotakeplace.Hereitisimportantthatallgroupsintheorganisationtakepart.Oncethisisimplementedthenthenextphaseistoensurethatallorganisationmembersareworkingandmovingforwardinthesamedirection.Thenameforthisisperformancemanagement,whichisaseriesofgoals,targets,andperformancemeasuresforindividualsandgroups,divisions,department,throughouttheorganisations.华耍处让憋腊觅系而梆橇殃羞亨铃庇萨罕窑凯砾碘挟校谓霹橙饮乎甘嚣跃工商管理专业MBALecture04004工商管理专业MBALecture04004PERFORMANCEMANAGEMENTFRAMEWORKSERVICE/BUSINESSPLANSDIRECTORATEPLANS&STRATEGIESCORPORATE

PLANS&STRATEGIESSTRATEGICPLANORGANISATIONWIDELOCALSTRATEGICOPERATIONALCOMPETITIVEADVANTAGEINDIVIDUALSTAFFPERFORMANCE,ACCOUNTABILITY&APPRAISALS向普桔浆企凛矾诌腋援釜虏布渣轩教邦扎歉谁智看椎潍赵怯遍瘁烂磨棠悔工商管理专业MBALecture04004工商管理专业MBALecture04004StrategicChangeKeypointsStrategicChangeisanintellectualchallengeintermsofthinkingthroughtheapproachtobeadopted,aswellasaprocessofassistingpeopletodealwithchangeanduncertainty.Inbroadtermsstrategicchangeisconcernedwithfindingswaysofsuccessfullydealingwithchangesinmarkets,governmentpolicies,competitiveness,technologiesetc.Keytochangeistheabilityofthefirmtomaintainpositioninthemarketwhileundergoingamajorchangeprocess.Thechallengeofdualstrategieshowacompanymanagesitsexistingactivitieswhilealsonurturingnewinitiativesthatwillformthebasisforitsbusinessinthefuture.Keyconcerncanbetheexistingcapabilitiesofthefirmandtheindividualcompetenciesofemployeese.g.ManagementsystemsandemployeeskillsExample:BritishAirwaysandContinentalfailedtoestablishlowbudgetairlines.OtherslikeGoogleand3Mhavemanageddualstrategies.HSBCBankinghasmanagedthedualstrategyofcostleadershipanddifferentiationinfullservicebankingandinternetbanking劈让耿迟脐冯坦割澎焙眷粮痰频蛙磷搓省绕吟漫锥强篆夺聂剑哄拍桑买养工商管理专业MBALecture04004工商管理专业MBALecture04004AFrameworkforaChangearchitectureClarityingovernanceandaccountabilityEngagementforkeystakeholdersinappropriatewaysSecuringalignmentfromthemajorityofthekeystakeholderstothechangeprocessEffective,credible,accessibleandappropriatelytransparentperformancemeasurestogaugeprogressandsuccessAbalancedsetofperformancemeasurespresentedonacommonframework(e.g.balancedscorecardapproach)AcquiringordevelopingnewskillsandcapabilitiesandthemobilizationofcommitmentandresourcesLearningtouseourcurrentknowledgetoenhanceourfutureknowledgeinasearchforenhancementofourproductsandservices沮锁谴腑斋厦殉势骨钵从供镍路宛纶单育丧霹履斩辊岳谈膝详许矩擂忘开工商管理专业MBALecture04004工商管理专业MBALecture04004BusinessprocessesMeasuresGoalsTenderSuccessrateProductivityUnderwriteProfitabilityInnovationMeasuresGoalsStaffcompetencies%revenuefromNewservicesCustomerperceptionCustomerMeasuresGoalsPolicyHoldersSatisfactionResponsetimesQualityofadviceFinancialMeasuresGoalsRateonCapitalEmployedCashFlowAssetutilisationRevenueGrowthABalancedScorecard什戈监尾椰擎洽役杯南睬新恭去婶沸嘴匹爽挨秘粪法噶完哨迈备抉品层披工商管理专业MBALecture04004工商管理专业MBALecture04004CuturalWebasameansofunderstandingorganisationandwhatnewstoriesyoumayneedforChange.Stories:heroes/heroines,successes,disasters,mavericksRoutinesandRituals:thingsthatalwayshappene.gmeetdeadlines,arriveontime‘waythingsaredonearoundhere’Rituals:longhourculture,seniorexecutivemeetingsSymbols:CEOcar,technicaljargon,styleofdressParadigm:keyreasonforbeingeg.newspaperisaboutnewsPowerStructure:Board,departmentalrivalry,managementstyleofexecutive,centralisationOrganisationalStructure:organisationaldesign,communicationsystemControlSystems:targetsandbudgets诈午另挣赐巴腑动夜简鹤博锌薯脐祖驳潍酵憎彦命又狈似侩苦塘鞭窄惮嚼工商管理专业MBALecture04004工商管理专业MBALecture04004CompetingValuesMapFlexibilityanddiscretionInternal

Clan

AdhocracyExternalfocusandintegration

HierarchyMarketFocusandDifferentiationStabilityandcontrolDrItaO'DonovanBeechgroveAssociates22玫俐喀心九坝敞阜簧窗坎棵那策砰箱腊绵钉衍恰痢拾蝴裸雁隘站靴命庄沿工商管理专业MBALecture04004工商管理专业MBALecture04004CulturalCompetingValuesExplanationsHierarchyoriginalideaofbureaucracyasinMaxWeberview.LineandcommandstructureMarketorganisationalsoseekscontrolbutdoessobylookingoutwardtakesparticularnoticeoftransactioncost.Keyhereisthatexternalandinternaltransactionsareviewedinmarketterms.ValueflowsbetweenpeopleandstakeholderswithminimalcostanddelayClan,lessfocusonstructureandcontrolandagreaterfocusonflexibility,peopledrivenbyvalues,sharedgoalsandoutputs.Morelikelytobeaflatstructure,peopleandteamsactautonomouslyAdhocracyEvengreaterfreedomthanclanculture,verynecessaryinafastchangingbusinessenvironment.Teamcultureandindvidualculturestrong.Visionaryleaders.DrItaO'DonovanBeechgroveAssociates23冉调纫彻俏悄闻塘东割乍谭赴血乞嗜娥柯崩绝戎囱浦剖江畜眨试囚淌它啼工商管理专业MBALecture04004工商管理专业MBALecture04004WithintheOrganisationExternalStakeholderHierarchy(formalpower)positionpowerControlofstrategicresourcese.g.Labour,money,materialsInfluence(informalpower)e.g.CharismaticleadershipInvolvementinstrategicimplementatione.g.Distributionoutlets,agentsControlofstrategicresourcese.g.Astrategicproduct,budget,staffingPossessionofknowledge(skills)e.g.subcontractorsPossessionofknowledge/skillse.g.SpecialistskillsThroughinternallinkse.g.InformalinfluenceControloftheenvironment,e.g.NegotiatingskillsInvolvementinstrategicimplementatione.guseofdiscretion24DrItaO'DonovanBeechgroveAssociatesSourcesofPowerSourcesofinternalandexternalpowerneedtobeconsideredinanystrategicchangestrategy驯个奥碱位该执溯瞧紊遍庐佛萎洒馆移似巨笼小脆屑悄抚鸦富师栓摊潜凤工商管理专业MBALecture04004工商管理专业MBALecture04004ThesourcesofsuperiorprofitabilityRATEOFRETURNABOVETHECOSTOFCAPITALHowdowemakeMoney?INDUSTRYATTRACTIVENESSWhichindustriesshouldwebein?CORPORATESTRATEGYCOMPETITIVEADVANTAGEHowshouldwecompete?BUSINESSSTRATEGY闭迷幕基蛛趣熟减古哉雏霖哇撕栈寇屑晒膝淫熙既受栗晤圆很围傣絮牵班工商管理专业MBALecture04004工商管理专业MBALecture04004SomeBusinessStrategyFundamentalsAtthebusinessleveloftheindustryfiveforcesareconsideredtothreatenoradvantagethefirm:Theseare:EntrybarriersRivalrybetweenindustryincumbentsSubstituteproductsorservicesThebargainingpowerofsuppliersThebargainingpowerofbuyers魁孤鼎创琵媳散诈鸽墨看堪抛掉耕剧虞编骏豌蹄屎炎廓揍岁孽槐颧炎缘自工商管理专业MBALecture04004工商管理专业MBALecture04004StrategyClockHighHybrid3LowPrice26

LowpriceAddedvalue176,7,8destinedtofail

8Differentiation4Focused5DifferentiationLowPriceHigh27DrItaO'DonovanBeechgroveAssociates趣箕锥吮察窟篇贱钉韵恢哈今怖赴舷通熟簧存毖豌能刃万馏嘉讥屑森堵瞩工商管理专业MBALecture04004工商管理专业MBALecture04004CompetitiveStrategyOptionsStrategiesNeedsandRisks1.Lowprice/lowaddedvalueLikelytobesegmentspecific2.LowPriceRiskofpricewarandlowmargins/needtobecostleader3.HybridLowcostbaseandreinvestmentinlowpriceanddifferentiation4DifferentiationWithoutpricepremiumWithpricepremiumPerceivedaddedvaluebyuser,yieldingmarketsharebenefitsPerceivedaddedvaluesufficienttobearpricepremium5.FocuseddifferentiationPerceivedaddedvaluetoaparticularsegment,warrantingpricepremium6.Increasedprice/standardvalueHighermarginsifcompetitorsdonotfollow/riskoflosingmarketshare7.Increasedprice/lowvalueOnlyfeasibleinmonopolysituation8.Lowvalue/standardpriceLossofmarketshare28DrItaO'DonovanBeechgroveAssociates磅瘴卵叔园妈岩娩怪橇亡贩钨座淆凄骑速水卜糕之庇讣续再钨东蹄恬倪主工商管理专业MBALecture04004工商管理专业MBALecture04004StrategyExamples1LowPrice/lowaddedvalue:ClothestradeinUKfrom1990stonow.Assomestoresupgrademerchandisenewonesenteratlowerprice2.LowPrice:verydifficult3.Hybrid:addedvaluewhilekeepingpricesdownsuggestJapanesefirmsdoingthisforyearsandIKEAtheSwedishfurnitureandhouseholdgoodscompany.Needtoconsideroverallcostbasecansustainlowmargins,thisneedstobeconsideredfrombeginningandafollowstrategyforwhenentryhasbeenachieved.4.Valueadded,ordifferentiation:uniquenessofproductorimprovementinproducts.InvestmentinRandD.ordesignexpertise.MercedesCarsGermany,Marketbasedapproaches,powerofthebrand.LeviJeans,TourismincountriesgoodexampleNepal,(Himalayas)China,(ForbiddenCity)Malaysia(Beaches)promotionalbrand.5.FocusedDifferentiation:thisoftenmeanspositioningyourproductinsamecategoryasotherse.g.Chocolates,yourchocolatesmoreexpensivethanothersGuidiva.Knowwhichsegmentyouarecompetingin,needtobeconfidentaboutbreadthofmarketmovetowardsglobalmarketsorfocusstrategy.FailureStrategies:theseareprobablydestinedtofailure,

route6suggestsincreaseinpricewithoutincreaseinvalue,notethisisoftenwhatmonopoliesareaccusedof.RecentlyprivatisedbodiessuchasBT,WaterCompaniesinUK.route7moreseveresuggestsred