Professional Documents
Culture Documents
STRATEGIC ALTERNATIVE
Strategic Alternatives
1. 2. 3. 4. 5. Mission Statement Choice of products or services Choice of markets Technologies to be adopted around Strategic interest a) What, Why, When b) Should we be in the same business? (Stability) c) Should we get out or add some parts? (Retrenchment) d) Should we expand into new business by adding new function, prod, markets (Expansion) e) Should we carry out alternative combinations b,d or c,b .. (Combination)
B.
Suppliers
Availability of needed input, Costs of input, exit and entry of suppliers, Power of suppliers.
C.
Competitors
Concentration ratio (numbers of firms and market share control Capacity utilization, exit and entry barriers (especially foreign threats of entry). Competitive behaviour, strategic graphs, availability and costs of substitutes from other industries.
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Strength
Threat
Weakness
Opportunity
Endogenous Exogenous
Impediments Endowments
3.
4.
HIGH
Major Threat
3
Moderate Threat
4 Minor Threat
LOW
8
LOW
Moderate Threat
HIGH
Probability of Occurrence
HIGH
Very Attractive
3
Moderately Attractive
4 Least Attractive
LOW
9
LOW
Moderately Attractive
HIGH
Probability of Occurrence
Business Growth %
High
Stars
Question Mark
Low
Cows
High
Dogs
Low
Indutsry Attractiveness
MEDIUM
GREEN
INVEST / EXPAND
YELLOW
LOW
RED
SELECT / EARN
STRONG
WEAK
AVERAGE
HARVEST/ DIVEST
Growth
B
Shakeout
C
Maturity / Saturation
Decline Strong
Average
Weak
A-High Potential deserves Expansion; B-Strong Competitive Position but product entering shakeout stage hence cautious expansion; C-Dog; D- Use it for cash generation; E-Potential Loser
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