Strategic Management Revision Articles - Chapter Summaries of Strickland and Thompson's Book
Strategies to Fit Industry Situation
Strategic Avenues for Competing in an Emerging Industry
1. Try to win the early race employing broad or focused differentiation strategy.
2. Push to perfect the technology, improve the product and quality.
3. Adopt dominant technology quickly.
4. Form strategic alliances with suppliers
5. Acquire or form alliances with companies that have related or complementary technological expertise.
6. Try to capture first mover advantages
7. Pursue new customer groups, new user applications and entry into new geographical areas.
8. Begin to shift advertising to increase the frequency of use and building brand loyalty.
9. Use price reductions to attract the next layer of price-sensitive buyers into the market.
Strategies for Competing in Turbulent, High-Velocity Markets
1. Invest aggressively in R&D
2. Develop quick response capability.
3. Develop tie-in.
4. Initiate fresh actions every few months - Create change proactively
5. Keep the company's products and services fresh.
Strategic Moves in Mature Industries
1. Pruning marginal products and models.
2. More emphasis on value chain innovation
3. Trimming costs
4. Increasing sales to present customers
5. Acquiring rival firms at bargain prices
6. Expanding internationally
7. Building new or more flexible capabilities
Strategies for Firms in Stagnant or Declining Industries
1. Pursue fastest growing market segments in the industry.
2. Stress differentiation based on quality improvement and product innovation
3. Strive to drive cost down.
Strategies for Competing in Fragmented Industries
1. Constructing and operating formula facilities
2. Becoming a low cost operator
3. Specializing by product type
4. Specializing by customer type
5. Focusing on limited geographical area
Strategies to Fit Company Situation
Rapid Growth Company
These companies have to craft a portfolio of strategic initiatives covering three horizons.
Short-term horizon: Strategies typically include adding new items to the company's present product line, expanding into new geographic areas, and launching offensives to take market share away from competitors.
Medium-term horizon: Entering new businesses
Long-term horizon: Pumping funds into R&D to create new businesses
Strategies for Industry Leaders
1. Stay-on-the-offensive strategy
2. Fortify and defend strategy
3. Muscle flexing strategy
Strategies for Runner-up Firms
Strategies to build market share
Acquisition opportunities
Vacant niches
Specialist firm strategy
Superior product strategy
Distinctive image strategy
Content follower strategy
Strategies for Weak and Crisis-Ridden Businesses
Selling off assets
Cutting costs
Liquidation
Source
Crafting and Executing Strategy, 14 Edition, Thompson, Strickland and Gamble
Industry factors and company factors are explained well.
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