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MindMap Gallery Strategic Choice
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Strategic Choice
This is a mind map about strategic choices, which summarizes strategic choices from the aspects of overall strategy, business unit strategy, functional strategy and internationalization.
Edited at 2021-08-11 15:55:40
- bacteria
This is a mind map about bacteria, and its main contents include: overview, morphology, types, structure, reproduction, distribution, application, and expansion. The summary is comprehensive and meticulous, suitable as review materials.
- Plant asexual reproduction
This is a mind map about plant asexual reproduction, and its main contents include: concept, spore reproduction, vegetative reproduction, tissue culture, and buds. The summary is comprehensive and meticulous, suitable as review materials.
- Reproductive development of animals
This is a mind map about the reproductive development of animals, and its main contents include: insects, frogs, birds, sexual reproduction, and asexual reproduction. The summary is comprehensive and meticulous, suitable as review materials.
Strategic Choice
- bacteria
This is a mind map about bacteria, and its main contents include: overview, morphology, types, structure, reproduction, distribution, application, and expansion. The summary is comprehensive and meticulous, suitable as review materials.
- Plant asexual reproduction
This is a mind map about plant asexual reproduction, and its main contents include: concept, spore reproduction, vegetative reproduction, tissue culture, and buds. The summary is comprehensive and meticulous, suitable as review materials.
- Reproductive development of animals
This is a mind map about the reproductive development of animals, and its main contents include: insects, frogs, birds, sexual reproduction, and asexual reproduction. The summary is comprehensive and meticulous, suitable as review materials.
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- Outline
Strategic Choice
overall strategy
overall strategy type
development strategy
strategic development type
integrated strategy
horizontal integration
Purpose: To achieve economies of scale
Applicable conditions
Have people, property and property
Industry competition is fierce
Industry has great potential for growth
Significant economies of scale
Able to maintain a certain monopoly position locally
vertical integration
advantage
control scarce resources
Ensure the quality of inputs such as key raw materials
Helps acquire new customers
Reduce transaction costs with upstream and downstream enterprises
Disadvantages: Increased internal management costs of the enterprise
Risks: Unfamiliarity with the field brings risks, high asset specificity, and increased exit costs.
type
forward integration
advantage
Master the market
Capture changes in consumer demand
Improve product market competitiveness and adaptability
Applicable conditions
Have human, financial and material resources
Industry has great potential for growth
High profits in sales
High sales costs, poor reliability of sales channels, and unmet sales needs
backward integration
Advantages: Control the cost, quality and supply reliability of key raw materials,
Applicable conditions
Have human, financial and material resources
Industry has great potential for growth
High profit margins in the supply chain
High supply costs and poor channels cannot meet demand
Few suppliers and many demanders and competitors
Effectively control raw material costs to ensure product price stability
intensive strategy
market penetration
Applicable conditions
1. Other companies leave due to various reasons
2. The company has a strong market position
3. Low market penetration risk, high participation of senior managers, and low investment
Market Development
Applicable conditions
1. There is an untapped or unsaturated market
2. The company is very successful in its current business field
3. Have the capital and human resources needed to expand operations, and have excess production capacity
4. The main business of the enterprise belongs to an industry that is rapidly globalizing.
product development
Applicable conditions
Enterprise products have high market credibility and customer satisfaction
Diversification Strategy
type
related diversification
unrelated diversification
reason
Existing products and markets cannot achieve goals
Retained funds exceed those required for existing investments
Diversification strategies are more profitable
advantage
spread risk
Find new business growth points
Easier access to financing
Receive funds or other financial benefits
Use excess funds
Leveraging underutilized resources
Use existing industry brands and reputation to enter another industry
risk
Original business industry risks
Internal business integration risks
market integration risk
Industry entry risk
Industry exit risk
Main approaches to development strategy
Internal new
motivation
shortcoming
External mergers and acquisitions
Motivation for M&A
Avoid entry barriers and enter the market quickly
Reduce competition and overcome negative externalities of enterprises
Gain synergy
Classification
M&A industry classification: horizontal M&A, vertical M&A, diversified M&A
Classification of M&A attitudes: friendly M&A, hostile M&A
M&A status classification: industrial capital M&A, financial capital M&A
Classification of M&A funds: leveraged M&A, non-leveraged M&A
Reasons for failed mergers and acquisitions
Beforehand: Improper decision-making
In progress: The cost is too high
Afterwards: Inability to effectively integrate
transnational political risk
Strategic Alliance
Strategic alliance type
Equity strategic alliance
joint venture
mutual shareholding
contractual strategic alliance
Reasons for strategic alliances
Reduce or avoid competition
Avoid business risks
build new business
Complementary resource advantages
Promote technological innovation
Reduce collaboration costs
stabilization strategy
contraction strategy type
Concentration and austerity
Institutional change: Redesigning policy and management control systems
Finance and Finance Strategy: Establishing an Effective Financial Control System
cost cutting strategy
turn
give up
Franchise
Subcontract, sell out
Management and leveraged buyouts
Split property into shares
Asset transfer and strategic trade
exit barriers
Fixed assets dedicated line level
Exit costs (placement costs)
internal strategic connections
emotional disorder
social and government constraints
business unit strategy
basic competitive strategy
porter competitive strategy
Cost leadership strategy
Implementation conditions
external
Customers are price sensitive
Market product standardization
Price competition is the main competition method in the market
internal
1. Equip corresponding production equipment to achieve economies of scale
2. Improve the utilization of production capacity
3. Improve production efficiency
4. Reduce the costs of various factors
5. Improve technology and design
6. Appropriate transaction organization form
7. Focus on gathering
Advantage
create barriers to entry
Enhance bargaining power
Reduce the threat of substitutes
Stay ahead of the competition
risk
1. Market customers pay attention to brand image, and the original advantages become disadvantages.
2. Technological changes wipe out the investment and experience used to reduce costs in the past.
3. New entrants to the industry achieve lower product costs by imitating or investing in higher-tech facilities.
Differentiation Strategy
Implementation conditions
external
Diversified customer needs
Products can fully realize customer differentiation
Technological changes are rapid, and innovation has become a stepping stone to competition.
internal
Possess strong R&D capabilities and product production and design capabilities
Strong marketing skills
good creative culture
Have the ability to improve the quality and image of a certain business as a whole, maintain advanced technology and establish and improve distribution channels
Advantage
create barriers to entry
Enhance bargaining power
Reduce the threat of substitutes
Reduce customer sensitivity
risk
Product differentiation costs are too high
Market demand changes
Competitor imitation reduces differentiation or even diverts it
centralization strategy
Implementation conditions
There is a physical examination on the needs of buyer groups
No other competitor finances this strategy
Limited resources, selected functions for individual market segments
Advantage
Avoid direct conflict
Avoid direct competition with competitors
Both cost leadership and differentiation can be reflected in centralization
risk
narrow market
The difference in demand among buying groups becomes smaller
Competitor entry and competition
Bowman strategy clock model
Differentiation Strategy
High value and high price (concentrated differentiation): high-income groups
High value (differentiation strategy)
High value and low price (high quality and low price)
Cost leadership strategy
Low value and low price (concentrated cost leadership): a very viable strategy
Low price (cost leadership strategy)
failure strategy
Competitive Strategies for Small and Medium Enterprises
Scattered industries
reason
1. There is no scale economy and it is difficult to form economies of scale.
2. Differentiation of customer needs
3. Low entry barriers and high exit barriers
4. Government policies and local regulations impose restrictions on industrial concentration
4 Enterprises in a new industry that have not yet mastered sufficient skills and capabilities occupy important market shares
strategic options
Overcoming fragmentation: Gaining a cost advantage
Franchise and chain ban
Discover industry advantages as early as possible
Technological innovation creates economies of scale
Increase added value - improve product differentiation
Specialization (centralization) – target aggregation
product segment specialization
Customer Type Specialization
Geographic area specialization
Beware of potential strategic pitfalls
Avoid seeking dominance
Avoid over-centralization
Don’t overreact to new things
Maintain strict strategic constraints
Understand competitors' strategic objectives and overhead costs
Emerging industry
Common feature
Technical uncertainty
Strategic uncertainty
Budding businesses and start-ups
Costs change rapidly
first time buyer
developmental disabilities
Technology options
Insufficient supply of raw materials
Lack of courage and ability to take risks
Customers are confused and waiting to see
Reactions to substituted products
Strategic Choice
Choose the right time and field to enter
Correctly Treat the Externalities of Industrial Development
Shape industrial structure
Pay attention to changes in industry opportunities and obstacles, and take the initiative in industrial development and changes
blue ocean strategy
key differences
avoid competition
Expand non-competitive market space
Create and seize (jue) new needs
Breaking the Law of Interchangeability between Value and Cost
At the same time, pursue differentiation and low cost, and integrate corporate behavior into a system
Reconstruct the basic rules of market boundaries (myopia buys double across the railing)
Examine alternative industries
Focus on complementary products and services
Redefine buyer groups
Across different strategic groups across industries
Across time and participation in shaping external trends
Reset customer functional and emotional appeals
functional strategy
research and develop
Type: Process Research, Product Research
Source of power: driven by market demand and driven by technology
Research and development positioning
Companies that bring technology products to the market (market leaders)
innovative imitator
low cost producer
Production
Capacity planning type
lead strategy
hysteresis strategy
matching strategy
Balancing Capacity and Demand Approach
Inventory production
Just-in-time production system JIT (0 inventory)
Resource order production (Order--Material--Production)
Order-based production (material--order--production)
purchase
Multiple sources of supply
Single source of supply (high-quality supply can be obtained, but no price advantage can be obtained)
Delivery of a complete subassembly by the supplier
marketing
Determine market goals
market segmentation
consumer segmentation
population
Behavior
psychology
location
Industrial market segmentation
Customer scale
end user
Target market selection
Differentiated marketing strategy
undifferentiated marketing strategy
centralized marketing strategy
4P marketing mix
Product Strategy
product portfolio
depth, breadth
type
Expand product portfolio
Reduce product portfolio
product extension
up
down
Two-way extension
product development
Brands and Trademarks
Price Strategy
Basic pricing method
cost oriented pricing
demand-driven pricing
competition oriented pricing
Main pricing strategies
Mental pricing strategy
Product portfolio pricing strategy
Discount and Transfer Strategies
regional differentiation strategy
New product launch pricing strategy
penetration pricing
skimming pricing
Satisfied with pricing strategy
Distribution strategy
Promotion strategy (personnel promotion, business promotion, advertising promotion, public relations promotion)
manpower
finance
Life cycle financial strategy selection
Operational risk and financial risk
High operating and low financial risk
Low operating and high financial risks
Based on value creation or growth rate
globalization
Motives for internationalization of enterprises in developing countries
seek market
seek resources
seeking assets
seeking efficiency
International market entry modes
Exports = Internal Advantages Ownership Advantages
External equity investment = internal advantages, ownership advantages, location advantages
Wholly owned subsidiary
joint venture
non-equity investments
Types of international business strategies
International business strategy: globalization, transnational strategy, international strategy, multi-country localization strategy
Emerging Markets
Strategic choices for emerging market companies: contenders, expanders, evaders, and defenders
Emerging market corporate strategy
1. Find a breakthrough in globalization
2. Find the market that has entered the market
3. Obtain resources from developed countries
4. Don’t stick to costs, measure your own strength with leading companies.