Strategy & Stakeholder Analysis
Uditha Wijayarathne | B.Sc.(Engineering) Hons, FCMA (UK), CGMA, ACCA (UK), MBA (PIM-SJP), DBA (Reading – UOC),
Lean & TPM Practitioner
Strategic Options – Scope & Focus
Corporate Strategy: This is the
"Big Picture." It looks at the
company as a whole to
determine which industries the
company should enter and how
the various business units
should work together.
Business Strategy: This is the
"Ground Level." It focuses on a
single business unit or product
line. It’s about competitive
advantage—how to beat the
rivals in a specific market.It’s
about portfolio management.
Key Questions To Ask
Feature
Corporate Strategy
Business Strategy
Key Question
"Which businesses should we be in?"
"How do we compete in this market?"
Objective
Diversification, synergy, and resource
allocation.
Winning customers and increasing market
share.
Responsibility
CEO and Board of Directors.
General Managers and Head of Business
Units.
Actions
Mergers, acquisitions, and entering new
countries.
Pricing, product features, and marketing
campaigns.
Levels of
Strategy
Porter’s
Generic
Strategy
The 2x2 Matrix
Where does your brand sit in the grid?
Market Scope vs. Advantage
1. Source of Advantage
2. Market Scope
Do you win by being Cheaper than everyone else, or by
Do you target Everyone (Broad), or a very Specific Group
being Better/Different?
(Narrow)?
Cost Leadership
The Scale Advantage
Goal: To be the lowest-cost producer in the industry for a broad
audience.
Think Walmart. They win by having the most efficient supply
chain and massive buying power. They sell everything to
everyone, just cheaper.
Differentiation
The "Cool" Factor
Goal: Offer something unique that customers are willing to pay a
premium for.
Think Apple. They aren't the cheapest, but their design, ecosystem,
and brand status make them irreplaceable to millions of broadmarket consumers.
Cost Focus
The Niche Saver
Goal: Be the low-cost leader for a specific, narrow segment.
Think Dollar General. They don't try to be Walmart. They focus on
low-income, rural shoppers who want essentials close to home
without the "Big Box" drive.
Differentiation Focus
The Elite Experience
Goal: Provide ultimate uniqueness to a tiny, elite sliver of the market.
Think Ferrari. They sell "dreams" and "status" to the ultra-wealthy. They don't want a
mass market; they want exclusivity.
How to Pick a Winner?
Process Power
Unique Magic
Specific Target
Can you manufacture or buy
Do you have a brand or feature that
Is there a neglected group of people
products for significantly less than
nobody else can replicate?
that you can serve perfectly?
others?
Profit Strategy Comparison
While Cost Leaders have lower margins, their Volume makes them giants!
"Stuck in the Middle"
The Danger Zone: When a company tries to be all things to all people but isn't cheap enough or
unique enough.
Result: Low profitability, confused customers, and being "eaten" by specialized competitors.
Example: Many mid-tier department stores that aren't high-end luxury or budget-friendly.
Ansoff’s
Matrix
EXISTING PRODUCTS: STARBUCKS
MARKET PENETRATION
Starbucks uses its Rewards App to increase the frequency
of purchases from existing customers in existing markets.
Risk Profile: Low
MARKET DEVELOPMENT
Entering the Chinese Market. Starbucks took its existing coffee-shop concept and introduced it to a brand new demographic and
geography.
NEW PRODUCTS: STARBUCKS
PRODUCT DEVELOPMENT
DIVERSIFICATION
Innovation for existing fans. Instant Coffee (VIA) was a
The "High Risk" leap. Expanding into Music & Lifestyle or
new product created for existing customers to enjoy at
high-end roastery merchandise for new segments.
home.
STRATEGY COMPARISON SUMMARY
Framework
Strategy
Key Advantage
Example
Porter's
Cost Leadership
Economies of Scale
Walmart
Porter's
Differentiation
Brand Equity / Tech
Apple
Ansoff's
Market Penetration
Loyalty / Volume
Starbucks Rewards
Ansoff's
Market Development
New Geography
Starbucks China
Thank You!