popularstrategydiagrams-110913094358-phpapp01.ppt

popular strategy diagrams

1. Fig. 8-4: Grand Strategy 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
IVIII
II

2. Fig. 8-5: Model of 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
III
IIIIV

3. Fig. 9-1: The BCG Growth-Share Matrix
Cash Generation (market share)
High
Low
High
Low
Cash
Use
(growth
rate)

4. Fig. 8-5: BDC’s Growth/Share Matrix

5. Fig. 9-1: The BCG 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: Industry Attractiveness-Business
Strength Matrix
Industry Attractiveness
High LowMedium
High
Medium
Low
B
u
s
i
n
e
s
s

S
t
r
e
n
g
t
h

7. Fig. 9-3: Industry Attractiveness-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: The Market Life-Cycle Competitive
Strength Matrix
Stage of Market Life Cycle
Introduction Growth Maturity Decline
L
o
w
M
o
d
e
r
a
t
e
H
i
g
h
C
o
m
p
e
t
i
t
i
v
e

S
t
r
e
n
g
t
h
Push: Invest
A
ggressively
C
aution: Invest
Selectively
D
anger: H
arvest

9. Fig. 9-4: The Market 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 unit competitive position
Strong Average WeakFig. 8-10: The Life-
Cycle Portfolio Matrix
Development
Growth
Competitive
shakeout
Maturity
Decline
Saturation
T
h

e

I
n
d
u
s
t
r
y
’
s

s
t
a
g
e

i
n

t
h
e

e
v
o
l
u
t
i
o
n
a
r
y

l
i
f
e

c
y
c
l
e

11. Fig. 8-7: The GE Nine-Cell
Planning Grid