popularstrategydiagrams-110913094358-phpapp01.ppt

popularstrategydiagrams-110913094358-phpapp01.ppt

• 1.
  Fig. 8-4: GrandStrategy Selection Matrix Overcome Weakness Maximize Strengths Vertical integration Conglomerate diversification Horizontal integration Concentric diversification Joint venture Turnaround or retrenchment Divesture Liquidation Concentrated growth Market development Product development Innovation Internal (redirected resources within the firm) External (acquisition or merger for resource capability) I IV III II
• 2.
  Fig. 8-5: Modelof Grand Strategy Clusters Rapid Market Growth Slow Market Growth • Reformulation of concentrated growth • Horizontal integration • Divestiture • Liquidation • Turnaround or retrenchment • Concentric diversification • Conglomerate diversification • Divestiture • Liquidation • Concentrated growth • Vertical integration • Concentric diversification • Concentric diversification • Conglomerate diversification • Joint ventures Strong Competitive Forces Weak Competitive Forces I II III IV
• 3.
  Fig. 9-1: TheBCG Growth-Share Matrix Cash Generation (market share) High Low High Low Cash Use (growth rate)
• 4.
  Fig. 8-5: BDC’sGrowth/Share Matrix
• 5.
  Fig. 9-1: TheBCG Growth-Share Matrix Market Share Sales relative to those of other competitors in the market (dividing point is usually selected to have only the two-three largest competitors in any market fall into the high market share region) Growth Rate Industry growth rate in constant dollars (dividing point is typically the GNP’s growth rate) Description of Dimensions
• 6.
  Fig. 9-3: IndustryAttractiveness-Business Strength Matrix Industry Attractiveness High Low Medium High Medium Low Business Strength
• 7.
  Fig. 9-3: IndustryAttractiveness-Business Strength Matrix Industry Attractiveness Subjective assessment based on broadest possible range of external opportunities & threats beyond the strict control of management Business Strength Subjective assessment of how strong a competitive advantage is created by a broad range of the firm’s internal strengths & weaknesses Description of Dimensions
• 8.
  Fig. 9-4: TheMarket Life-Cycle Competitive Strength Matrix Stage of Market Life Cycle Introduction Growth Maturity Decline Low Moderate High Competitive Strength Push: Invest Aggressively Caution: Invest Selectively Danger: Harvest
• 9.
  Fig. 9-4: TheMarket Life Cycle - Competitive Strength Matrix Stage of Market Life Cycle See page 197 Competitive Strength Overall subjective rating, based on a wide range of factors regarding the likelihood of gaining & maintaining a competitive advantage Description of Dimensions
• 10.
  The business unitcompetitive position Strong Average Weak Fig. 8-10: The Life- Cycle Portfolio Matrix Development Growth Competitive shakeout Maturity Decline Saturation Th e Industry’s stage in the evolutionary life cycle
• 11.
  Fig. 8-7: TheGE Nine-Cell Planning Grid