Strategic marketing

Porter’s wheel of competitive strategy

2

Product life cycle

BCG Matrix

Product life cycle portfolio matrix

GE/McKinsey Matrix

Directional Policy Matrix

ADL Matrix

• Industry life cycle stage

• Competitive
• Position

• Embryonic

• Growth

• Mature

• Aging

• Dominant

• Hold position and seek to maximize share

• Hold position and share

• Hold position and expand with industry

• Hold position

• Strong

• Attempt to improve position and maximize share

• Attempt to improve position and be selective in attempts to improve share

• Hold position and expand with industry

• Hold position or harvest

• Favourable

• Selective attempts to improve position

• Attempt to improve position and be selective in attempts to improve share

• Find niche and attempt to guard it.

• Harvest or phased out withdrawal

• Tenable

• Selectively push for position

• Find niche and attempt to guard it

• Find niche and hang on or phased out withdrawal

• Phased out withdrawal or abandon

• Weak

• Improve or get out

• Turnaround or abandon

• Turn around or phased out withdrawal

• Abandon

3

Balanced Scorecard

• Figure 3.1 The balanced scorecard

• EXHIBIT 3.5 FORD MODEL ‘T’—THE MINDSET OF HENRY FORD
• Henry Ford’s model ‘T’ remained unchanged for years while General Motors (Chevrolet) was making changes often using new technology.
• Henry Ford said: ‘We’ll give the customer any colour he wants as long as it is black.’ It was an arrogant statement by an arrogant man who had been on top so long he thought nothing could dislodge him from the number one position.
• In the late 1920s Ford nearly went out of business as a result of this myopic approach. General Motors (Chevrolet) took over as number one in the US and Ford did not catch up until the late 1980s.

• · Strategic blocks: ‘one right answer approaches’, inflexibility in thinking. These affect the approach taken to solve problems. They include the tendency to rely heavily on past experience or particular techniques without challenging their appropriateness; focusing on a narrow range of options for either problem definition or problem solving; and adapting an over­ly serious approach to problems which prevents the emergence of a playful, imaginative and humorous climate.
• · Value blocks: ‘over-generalized rigidity influenced by personal values’. These occur when personal beliefs and values restrict the range of ideas contemplated. Values co-exist and failure to reconcile them contributes to difficult personal and organizational dilemmas.
• · Perceptual blocks: ‘over-narrow focus of attention and interest’. These arise from a lack of sensory awareness at a physical level and therefore contribute to a lack of awareness of implications of situations.
• · Self-image blocks: ‘poor effectiveness through fear of failure, timidity in expressing ideas, etc.’. These reduce effectiveness in advancing ideas assertively. They arise from a lack of self confidence in the value of one’s own ideas. Individuals may be reluctant to seek help and talk about personal feelings.This barrier seems to be the greatest impediment to the successful implementation of new ideas.

• Blocks to Individual Creativity

• EXHIBIT 3.6 BLOCKS TO CREATIVITY IN ORGANIZATIONS
• People and organizations tend to fall into a variety of traps when trying to become more innovative.
• 1 Identifying the wrong problem
• 2 Judging ideas too quickly
• 3 Stopping with the first good idea
• 4 Failing to get the support of key personnel in the organization
• 5 Failing to challenge assumptions