Summary: Exploring Strategy

Read the summary and the most important questions on Exploring Strategy

• 1 Introducing Strategy

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• What are the three horizons of an organisation?

  Horizon 1) Extend & defend core business

  Horizon 2) Emerging activities, that provide a new source of income

  Horizon 3) Create variable options

• What are the three main themes of a strategy statement?

  1. Goals
  2. Scope of activities (three dimensions)
  3. Advantages/capabilities (how will it achieve these)

• Of which three things does a strategy exist (strategy branches)

  1. Context (internal & external) --> Strategic Position
  2. Content (strategic options) ---> Strategic Choices
  3. Process (formation & implementation) --> Strategy in action

• Which four lenses are there?

  1. Design; large investment in planning before making official strategy.
  2. Experience; strategy based on experience and interest of key decision-makers needs to be understood.
     
  3. Variety; mix between design and experience; people respond to uncertain/changing environment (variety)
     
  4. Discourse; managers make strategic proposals, debate and choose
     

• 2 Environment

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• With which models do the layers get evaluated?

  1. Macro-environment; PESTEL framework
  2. Industry or sector; Five Forces Framework
  3. Competitors or market; Strategic Groups, Market Segments, Blue Ocean Thinking

  SWOT--> TOWS

• What is a Strategy Canvas?

  In order to compare competitor's performances on key success factor, to develop new strategies on new market spaces.

• Which types of industry are there?

  1. Monopoly; one big market dominates market
  2. Oligopoly; a few organisations control the market (power over suppliers/buyers)
  3. Hyper competition; imbalanced conditions based on aggressive competition
  4. Perfect competition; low entry barriers and a number of similar companies

• What are strategic groups? (Competitors/markets)

  Strategic groups are companies within one industry or sector which follow similar strategies, products, services as well as target groups.  

• What is a market segment? (Competitors/markets)

  Market segment describes a group of customers that are connected through similar needs and demands.

• What can be done with the market segments? How can be reacted to them?

  ·         Variation in customer needs - finding typical characteristic of the customer in order to create a strategy based on the characteristic  

  ·     Specialization - figuring out a niche within a segment and specialize on it within a market segment

  ·       Strategic customers - strategies which are based on certain customers groups as they have a big impact on the market segment