Pertemuan Kelima
Business Strategies
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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.
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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
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• 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
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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
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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
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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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