MindMap Gallery Strategic Choice
Enterprise strategic choices are driven by the market; technical logic is driven by technological development. For technical logic, the progress of technology itself is enough; but for corporate strategy, the progress of technology itself is only a necessary condition, and multiple factors of market competition must also be considered comprehensively to achieve success.
Edited at 2022-11-04 13:19:38El cáncer de pulmón es un tumor maligno que se origina en la mucosa bronquial o las glándulas de los pulmones. Es uno de los tumores malignos con mayor morbilidad y mortalidad y mayor amenaza para la salud y la vida humana.
La diabetes es una enfermedad crónica con hiperglucemia como signo principal. Es causada principalmente por una disminución en la secreción de insulina causada por una disfunción de las células de los islotes pancreáticos, o porque el cuerpo es insensible a la acción de la insulina (es decir, resistencia a la insulina), o ambas cosas. la glucosa en la sangre es ineficaz para ser utilizada y almacenada.
El sistema digestivo es uno de los nueve sistemas principales del cuerpo humano y es el principal responsable de la ingesta, digestión, absorción y excreción de los alimentos. Consta de dos partes principales: el tracto digestivo y las glándulas digestivas.
El cáncer de pulmón es un tumor maligno que se origina en la mucosa bronquial o las glándulas de los pulmones. Es uno de los tumores malignos con mayor morbilidad y mortalidad y mayor amenaza para la salud y la vida humana.
La diabetes es una enfermedad crónica con hiperglucemia como signo principal. Es causada principalmente por una disminución en la secreción de insulina causada por una disfunción de las células de los islotes pancreáticos, o porque el cuerpo es insensible a la acción de la insulina (es decir, resistencia a la insulina), o ambas cosas. la glucosa en la sangre es ineficaz para ser utilizada y almacenada.
El sistema digestivo es uno de los nueve sistemas principales del cuerpo humano y es el principal responsable de la ingesta, digestión, absorción y excreción de los alimentos. Consta de dos partes principales: el tracto digestivo y las glándulas digestivas.
Strategic Choice
corporate level strategy
Main types
development strategy
integrated strategy
vertical integration
forward integration
Downstream companies control sales channels
Existing sales costs are high and reliability is poor
Industry has great potential for growth
Have the necessary resources
High profits in sales
backward integration
Upstream companies control key raw materials
Existing suppliers have high costs and poor reliability
Less supply side, more demand side
Great growth potential
High profits in the supply chain
risk
Not familiar with new business
Large amount of investment, strong asset specificity, high exit costs
horizontal integration
Advantage
Reduce competitive pressure
achieve economies of scale
Enhance your own strength
condition
Competition in the industry is fierce
Significant economies of scale
Comply with antitrust laws
Great growth potential
Have appropriate resources
intensive strategy
market penetration strategy
Features
Single product Existing market Forced marketing = market share
Way
Attract potential customers and increase the number of users
Discover potential customers and expand geographically
Convert non-users
Attract competitor customers
Improve product features according to customer needs
Stimulate potential demand from existing customers
increase frequency
Increase the number of single uses
market development strategy
Features
Existing products New markets
Develop regional markets and market segments
reason
Difficulty switching to new products
Combining market development with product development
The existing market is saturated
Applicable situations
There is an untapped and unsaturated market
New and reliable sales channels available
Existing business areas are very successful
Have appropriate resources
excess market capacity
Main business is rapidly globalizing
product development strategy
Features
New product Existing market
Extend product cycle and improve differentiation
reason
Leverage existing product reputation and trademarks
Leverage your company’s understanding of the market
stay ahead of the curve
Find new opportunities within your existing product portfolio
Applicable situations
The product has high credibility and satisfaction
High-tech industry
high growth stage
Strong R&D capabilities
Competitor products are low-priced or high-quality
Diversification Strategy
reason
Existing products cannot achieve goals in the market
Retained funds exceed the funds required for market expansion of existing products
Diversification is more profitable than existing products
type
related diversification
unrelated diversification
advantage
spread risk
Easy access to financing
Looking for growth
Take advantage of new resources
Use surplus funds
Get Finance Li Yi
Leveraging existing reputational brands
risk
Original industries have been weakened
overall market risk
Industry entry risk
Industry exit risk
Operational integration risk
stabilization strategy
maintenance strategy
Advantage
Low risk, make full use of original resources
Reduce the risk of developing new products and markets
Avoid resource reallocation portfolio costs
Prevent the risk of growing too quickly
risk
Changes in the external environment put companies in trouble
Reduce corporate risk awareness
contraction strategy
reason
active cause
Strategic reorganization of large enterprises
short-term behavior of small businesses
passive cause
External reasons: industrial downturn
Business loses competitive advantage
Way
austerity and concentration strategies
Adaptive Shrinking Short-Term Benefits
Applicable situations
Adapting to the external environment EG market shrinks
Business failure leads to contraction strategy
Shrinking method
Mechanism change
Adjust financial strategy
cost cutting
Turn to strategy
Adjustable contraction, proactive
Shrinking method
Reposition products
Adjust marketing strategy eg strengthen advertising
abandon strategy
When the steering is invalid, transfer, sell, and cease operations.
Stronger than liquidation strategy
difficulty
Difficult to grasp the scale
exit barriers
High degree of asset specificity and high switching costs
exit cost
internal strategic connections
emotional disorder
Government and Social Constraints
Main approaches to development strategy
M&A strategy (external development strategy)
M&A motivation
Avoid barriers to entry
Gain synergy
Overcoming negative corporate externalities
Reasons for failed mergers and acquisitions
poor decision making
attraction test
Enter cost testing
Complementarity test
Poor enterprise integration
M&A costs are too high
Cross-border mergers and acquisitions political risks
internal development strategy
motivation
Information to fully understand the market
cultural unity
lower risk
shortcoming
Increasing competition in the crude oil market
relatively slow
Application conditions
The industry is unbalanced and no structural barriers have been established
Behavioral barriers in existing companies are easily restricted
Ability to overcome structural and behavioral barriers
Strategic Alliance
Basic Features
Intermediate organization between market and enterprise
collaborative partnership
Equality of dealings
relationship long term
complementarity of interests
organizational openness
long-term strategic cooperation
motivation
Promote technological innovation
Avoid business risks
Avoid or reduce competition
complementary resources
build new business
Reduce coordination costs
type
Joint ventures most common
mutual shareholding
Functional Agreement Contractual Strategic Alliance
type
Research Open Collaboration Agreement
technical agreement
Production Marketing Agreement
Industrial Coordination Agreement
vs equity alliance
Advantage
No economic entity or fixed organizational structure required
Equality and business independence
Flexible distribution of benefits
Low initial investment and flexible operation
Disadvantages
poor control ability
Lack of stability and long-term interests
business unit strategy
Strategic Choice
Cost leadership strategy
meaning
Strengthen cost control and reduce costs
market share
Advantage
create barriers to entry
Enhance bargaining power
Stay ahead of the competition
Applicable situations
Product price elasticity is high and users are price sensitive
Product standardization with little difference
Users don’t pay much attention to brands
Fierce price competition and low switching costs
Required resource capabilities
risk
Technology change risk
be imitated
Users begin to pay attention to product image
Differentiation Strategy
meaning
Product uniqueness brings additional price increase
profit margin
Advantage
create barriers to entry
Reduce customer sensitivity
Enhance bargaining power
Applicable situations
Products can be differentiated
Diversified customer needs
Industrial technology changes rapidly and innovation is the focus of competition
Required resource capabilities
risk
Market demand changes
Differentiation costs are too high
be imitated
centralization strategy
meaning
Target a specific group Market segment using cost leadership or product differentiation
type
Concentrated cost leadership
Focus on product differentiation
Advantage
Resist five competitive forces
Enhance relative competitive advantage
Applicable situations
There are differences in demand among buying groups
The target market is attractive
No other competitor adopts a similar strategy
Enterprise capabilities are limited and can only select individual market segments
risk
Narrow target market
The difference in demand becomes smaller
Competitors enter
Comprehensive analysis of basic strategies
strategic clock
cost leadership
low price low value
Concentrated cost leadership
low price strategy
cost leadership
Differentiation Strategy
high value strategy
Differentiation
high value high price
Focus on differentiation
mixed strategy
Overall cost leadership differentiation strategy
Situations where two advantages are obtained
High-quality products increase market share
Economies of scale reduce costs
High-quality products accumulate experience and reduce costs
Increase productivity
functional strategy
marketing strategy
Determine market goals
market segmentation
Segmented benefits
Discover market opportunities
Reduce operating expenses and expand operating benefits
Consumer market segmentation basis
Geographic segmentation
Urban and rural terrain, climate, transportation
population segmentation
Education Level Age Income Occupation Religion
psychographic segmentation
personality lifestyle
behavioral segmentation
Loyalty User status Purchase timing
Industrial market segmentation basis
Market segmentation effective sign
Measurability
accessibility
Profitability
Target market selection
undifferentiated marketing
Comprehensive market, cost-effective, single product
advantage
Fewer products, large batches, cost savings and increased profit margins
shortcoming
Ignore differences in needs
Differential Marketing
Independent marketing for each market segment
Classification
selective specialization
Product specialization
market specialization
advantage
Use different needs to expand sales and increase share
shortcoming
increase cost
centralized marketing
Concentrate efforts to enter a small number of market segments and specialize in production and sales
Suitable for small and medium-sized enterprises with limited resources or large enterprises entering the market for the first time
advantage
Products are marketable and professional marketing saves costs.
shortcoming
If the target is too concentrated, the risk will be greater
Selection basis
Enterprise resources
product homogeneity
market homogeneity
Product life cycle stages
competitor target market
Market positioning
Design marketing mix
Four variables
Product Promotion Distribution Price
Product Strategy
product mix strategy
Width Length Depth Relevance
width
Product categories
length
Total number of product items
depth
Internal varieties of product categories
type
Expand product portfolio
Reduce product portfolio
product extension
Change the company’s original product market positioning
Product category modernization
Update obsolete products
Brand and Trademark Strategy
single brand strategy
Multi-brand strategy
Private brand strategy
Retailer
product development strategy
reason
risk
promotion strategy
advertising promotion
Business promotion
Non-media promotions, discounts, gifts, trials
public relations
Promote corporate image
personal selling
Distribution strategy
assessment method
economical criteria
control standards
adaptability criteria
Price Strategy
product differential pricing
customer segmentation pricing
Product form differential pricing
image differential pricing
Package
location differential pricing
time difference pricing
New product launch pricing method
skimming pricing
Scope of application
Brand new products Patented products The future situation is difficult to predict
advantage
Quickly recover investment and reduce risk
Customers have no rational understanding
Reserve room for price adjustment
Limit excessive growth in demand
shortcoming
Not conducive to market development
Competition is pouring in
consumer boycott
penetration pricing
Scope of application
Price elasticity is greater
There is a scale effect
advantage
The market readily accepts cost reductions
Small profits prevent competitors from entering
Marketing strategy implementation and control
research and development strategy
R&D positioning
Launch new technology
innovative imitator
low cost producer
R&D strategy
Offensive
Innovation
follower type
imitation innovation
Introduced type
Patent purchase
How to choose ways to obtain R&D technology
Technological progress is slow and barriers to entry exist
Internal R&D
Rapid technological change and slow market growth
Riskier
Technology changes slowly, market grows rapidly
external acquisition
Rapid technological changes and rapid market growth
Obtain R&D technology from senior companies in the industry
Production operations strategy
Main factors involved
batch
type
demand changes
visibility
Capacity planning
lead strategy
hysteresis strategy
matching strategy
balanced approach
resource order
Order production
Inventory production style
Quality Control
quality cost
running quality cost
internal loss costs
Losses before shipment, scrap, shutdown
appraisal cost
prevention cost
Quality training process control Quality audit rewards
external loss costs
Repair after appearance, claim, return or exchange
external quality costs
Fees paid to provide users with requested objective evidence
Additional warranty measures
Product verification
quality certification
total quality management
Internal customers and internal suppliers
service level agreement
Company quality culture
Authorize
Procurement strategy
HR strategy
financial strategy
information strategy
international business strategy