Strategic managementGroup no. 04

Presentation on:

Business Level Strategy

SCALE AND SCOPE

SCALE

Capacity: - Production capacity of

120000 units in a year

Manufacturing:- 700,000 units in a

year

Reach: - 120 countries through

dealership model and partnership with

other motor companies

Customer: - 1.27 mn units sold for

the period 2010-11. (130266 units

exported.)

SCOPE

Product: - 15 brands of car across

150 variants

Market :- India , Europe, Latin

America,

Segment :- hatchback and sedan

Geography :- produced at plants in

Haryana.

PORTER’S GENERIC STRATEGY

COST LEADER DIFFERENTIATED PRODUCTS

NICHE / FOCUSED

COMPETITIVE ADVANTAGE

COM

PAN

Y SC

OPE

COST DIFFERENTIATION

BRO

ADN

ARRO

W

BUSINESS STRATEGY

GROW LARGER

HERO MOTOR CORP.

Brought itself out from the JV with Honda Motorcycle Company.

DOWNSIZE

BAJAJ MOTORS.

Bajaj motor company shut down its SCOOTER mfg sbu for

greater focus on motorcycle market.

BUSINESS STRATEGY Cont.

DIVERSIFYING TO NEW MARKET

DOMINATE THE NICHE

Mont Blanc Company with its series of perfectly crafted pens

Walt Disney moved from producing animated movies to theme parks and vacation properties

BUSINESS STRATEGY Cont.

OUTSOURCE PRODUCTION PROCESS

INTEGRATE PRODUCTION PROCESS

Car manufacturers don’t produce tyre. They outsource from other companies. One of the example is Maruti outsource tyre from Bridgestone company.

ITC pioneered the cultivation and development of Leaf Tobaccos in India. ITC buys nearly 50 per cent of all cigarette tobacco types grown in India. The Leaf Tobacco business' partnership with the farmer is also almost a 100 years old. In a spirit that truly embodies the Company's "commitment beyond the market", ITC has helped the Indian farmer grow quality leaf tobaccos and linked him to global markets.

BUSINESS STRATEGY Cont.

BECOME COST LEADER EVEN IF QUALITY SACRIFICES

BECOME QUALITY LEADER EVEN IF COST SACRIFICES

HONDA MOTOR CORP. Launches the new bistro sans the regular safety Honda features which are a trademark of the Honda company.

Kobe beef a geographically determined produce from JAPANExtremely highly priced compared to other beef in the world. Each bullock/ castrated bull provides for 470kg or less of beef.

BUSINESS STRATEGY Cont.

DRIVE RIVALS OUT OF THE MARKET

CO-OPERATE WITH RIVALS

Apple driving out Samsung from Germany by winning a patent violation case against Samsung in the German courts

Reliance petroleum and British petroleum joint venture to explore KG-6 basin for better productivity.

BUSINESS STRATEGY Cont.

BE AN INNOVATOR

BE AN IMMITATOR

Model HP Hewlett Packard Photosmart eStation produced that allow users to access, view and print Web content at any time, anywhere around the house they won the Best Innovation category of computer accessories 2011.

high quality Lexi 5 plastic ball pens to the most reliable customers which are situated all round the nation. These Lexi 5 plastic ball pens are available in market at very competitive prices.

ANSOFF MATRIX

MARKET PENETRATION

PRODUCT DEVELOPMENT

MARKET DEVELOPMENT DIVERSIFICATION

PRODUCTS

MAR

KETS

EXISTING NEW

EXIS

TIN

GN

EW

Thank you