Pertemuan Kelima
Business Strategies
1

Strategic Decisions at Business
Level
• Managers at sbu must make recommendations about:
– Unit’s objectives
– Scope of its target customers and offerings
– Which broad competitive strategy to pursue to build a competitive advantage.
2

How Should Strategic Business Be
Designed?
• A homogenous set of markets to serve with a limited number of related technologies
• A unique set of product markets
• Control over those factors necessary for successful performance
• Responsibility for their own profitability
3

• Three dimensions that define the scope and mission of the entire corporation also define individual sbus:
– Technical compatibility
– Similarity in the customer needs or the product benefits sought by customers in the target markets
– Similarity in the personal characteristics or behavior patterns of customers
4

Competitive Strategies
• Overall cost leadership
• Differentiation; building customer perceptions of superior product quality, design or service
• Focus, in which business avoids direct confrontation with its major competitors by concentrating on narrowly defined market niches
5

Differences in Goals and
Objectives
• Effectiveness; the success of a business’s products and programs relative to those of its competitors in the market. Effectiveness is commonly measured by such items as sales growth.
• Efficiency; the outcomes of a business’s programs relative to the resources used in implementing them. Common measures of effeciency are profitability as a percent of sales and return on investment
6

Differences in Goals and
Objectives
• Adaptability; the business’s success in responding over time to changing conditions and opportunities in the environment. Adaptability can be measured in a variety of ways. The most common ones are the number of successful new products introduced relative to those competitors or the percentage of sales accounted for by products introduced within the last five years
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Conclusion
• A business is likely to achieve superior growth in market share, revenue and profitability when there is a good fit between its competitive strategy and the strategic marketing programs of its various product or service offerings.
• The generic competitive strategies described apply equally well to services and products, single product start-ups, and multidivisional corporations
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