2. The Positioning
Approach
The oldest approach to military
strategy.
The newest of the three prescriptive
approaches to strategy .
Design and Planning Approaches were
explained in Chapter 3.
Focuses on how firms in a given
context differ in product market
positions compared to the competition.
80
3. Premises of The
Positioning Approach
Strategy follows structure.
Looks at the groups of competitors in
an industry.
Relies more heavily on calculation than
the design or planning schools.
Places even more emphasis on the role
of strategic planners.
81
6. The 6 Barriers of
Entry
Economies of Scale.
Product Differentiation.
Capital Requirements.
Cost Disadvantages Independent of Size.
Access to Distribution Channels.
Government Policy.
89
11. Supplier Power
Determinants
Differentiation of Inputs.
Switching Costs of Suppliers.
Presence of Substitute Products.
Supplier Concentration.
Importance of Volume to Supplier.
Cost Relative to Total Purchases in
90
19. Value Chain Analysis
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Human Resource Management
Technology Development
Procurement
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Figure 3
Procurement
S
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O
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21. Devising a Plan of Action
Position the Company.
Influence the Balance of the Forces.
Anticipate Shifts in the Forces.
93
22. Creating Families of Strategies
1 . Locating the core business.
2 . Distinguishing the core business.
3 . Elaborating the core business.
4 . Extending the core business.
5 . Reconceiving the core business.
94
23. Creating Families of Strategies
1 . Locating the core business.
2 . Distinguishing the core business.
3 . Elaborating the core business.
4 . Extending the core business.
5 . Reconceiving the core business.
The Core Business is reflected in the
Choice of Generic Strategies
30. Elaborating the Core Business
Penetration Strategies.
Market Development Strategies.
Geographic Expansion Strategies.
Product Development Strategies.
101
31. Elaborating the Core Business
Penetration Strategies.
Market Development Strategies.
Geographic Expansion Strategies.
Product Development Strategies.
32. Ways to Elaborate a Given
Business
Existing Product
New Product
Existing
Market
P
enetration
Strategies
P
roduct
Development
Strategies
New
Market
M
arket
Development
Strategies
Diversification
Strategies
Figure 5
101