Tools for Strategic Marketing

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Tools for Strategic Marketing

• Dr. David Blenkhorn

2
The BCG Growth-Share Matrix
3
The Market Attractiveness-Business Position Matrix
Invest/ Grow
Selective Investment
Harvest/ Divest
Figure 7.5
4
McKinsey/GE Business Screen Matrix(stop-light
matrix) Market Attractiveness

• 
  1.
  Invest/grow
• 
  
  (green)
• Business
  2. Selective
• position
  investment
• Its ability
  (amber)
• to compete
  3. Harvest/
• 
  
  divest
• 
  (red)

5
Porters Five-Factor Model ofMarket
Profitability
Threat of Potential Entrants
Competition Among Existing Firms
Bargaining Power of Suppliers
Bargaining Power of Customers
Threat of Substitute Products
Source Adapted from Michael E. Porter, Industry
Structure and Competitive Strategy Keys to
Profitability Financial Analysis
Journal,July-August 1980,p.33.
Figure 5.3
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Competitive Advantage (CA)

• Certain capabilities that bind the organizations
  assets together and are used to advantage.
• So imbedded in the organization that they cannot
  be easily traded or imitated.
• Derived from the nature of its products, markets,
  technological orientation, resources (especially
  human), and knowledge.

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Sustainable Competitive Advantage (SCA)

• A strategic skill or asset that gives the firm a
  strategic advantage over the competition, for an
  extended period of time.

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Sustainable Competitive Advantage (SCA)

• The way you compete
• Product strategy
• Positioning strategy
• Manufacturing strategy
• Channel strategy, etc.
• Basis of competition
• Assets and competencies

• Where you compete
• Product-market selection
• Whom you compete against
• Competitor selection

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PEST analysis

• Political
• Economic
• Social
• Technological

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SWOT internal analysis

• STRENGTHS
• WEAKNESSES
• OPPORTUNITIES
• THREATS

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VRIO (internal resources analysis)

• Is the internal resource VALUABLE?
• Is it RARE?
• Is it INIMITABLE? (Can it be imitated easily?)
• What are the ORGANIZATIONAL CAPABILITIES of
  capitalizing on this resource?

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Strategic Analysis

• External Analysis
  Internal Analysis
• - Customer analysis -
  Performance analysis
• - Competitor analysis -
  Determinants of
• - Market analysis
  strategic options
• - Environmental analysis
• Opportunities, threats, trends,
  Strategic strengths,
• strategic uncertainties
  weaknesses, problems,
  constraints, uncertainties
• Strategic Identification and Selection
• -Identify strategic alternatives
• Select strategy
• Implement the operating plan
• Review strategies