WINNINGCOMPETITIVE

STRATEGY

Presented By:Group No. 2

Chanakya’s Arthashastra

•Treating with Equality (forgiveness)

•Enticement (bribing)

• Punishment or War

• Sowing Dissension (divide and rule)

Strategy:The direction and scope of an organisation over the long-

term: which achieves advantage through its configuration of resources within a challenging environment, to meet the needs of markets and stakeholder.

•Direction- long term

•Markets; scope

• Advantage- better than others

•Resources (skills, assets, finance, relationships, technical competence, facilities).

•Environment- external factors

•Stakeholders- expectations.

Strategy at Different Levels of a Business

•Corporate Strategy - overall purpose and scope of the business to meet stakeholder expectations.

•Business Unit Strategy - how a business competes successfully in a particular market( choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc.)

•Operational Strategy - how each part of the business is organised to deliver the corporate and business-unit level strategic direction (resources, processes, people etc).

Competitive Strategy•Porter competitive strategy is “about being different.”

•It means deliberately choosing a different set of activities to deliver a unique mix of value.

•A combination of the ends (goals) for which the firm is striving and the means (policies) by which it is seeking to get there.

Formulation of competitive stragtegy•Strategic Analysis-analysing the strength of businesses' position and important external factors influencing.( PEST Analysis, Five Forces analysis, SWOT analysis, etc.)

•Strategic Choice- understanding the nature of stakeholder expectations, identifying strategic options, and then evaluating and selecting strategic options.

•Strategy Implementation- a strategy has been analysed and selected, the task is then to translate it into organisational action.

Porter’s Five Forces:

Retail Sector

•Distribution of finished products to the public.

•General retailers (managed by individuals/families), departmental stores, specialty stores and discount stores.

•Major retail giants include Wal-Mart, Target, Home Depot and Tesco.

•Worldwide retail sales are estimated at $7 trillion (USD).

•In India retail market is worth $300 billion.

Successful Strategies in Retail Sector:

Wal-Mart:

•Cost Advantage Strategy-lower prices than anywhere elsecutting-edge technology and a push to make suppliers sell merchandise at cheaper and cheaper prices.

•IT advantage- Radio frequency identification technology (RFID)- radio frequencies to transmit data stored on small tags attached to pallets or individual products.

•Strong Distribution, Inventory Management System

•Wal-Mart's Indian joint venture Bharti-Wal-Mart.

•Wal-Mart's Crossover Strategy.

•Convenient hours; free parking.

Mc Donald’s:

•Selling consistent, simple, low-priced American food.

•Stores number more than 30,000 in more than 100 countries.

•Real Estate- Lease a plot of land and the building for each restaurant, then sublease to the franchisee who would run the restaurant.

•Dedicated supply chain in India and sources 99% of its products from within the country- the farm level.

•MFY (Made for You) food preparation platform – food safety, hygiene and quality standards.

Café Coffee Day:

•Retail chain: CCD has 620 cafes at present and it has ambitious plans to launch more than 900 cafes by the end of the current financial year.

•Not Just About Coffee: customers come to rejuvenate themselves and be themselves.

•Supply Chain: Procure coffee beans from banglore base- quality assurance n guaranteed supply across country.

•Cost effective: Food items available are obtained from local suppliers.

•Brand Strength.

Pantaloons:•Cost

In House manufacturing- Reduction in cost Fleet of owned vehicles.

•Quality High performance design Excellent customer service- free home delivery,

apparels (foreign Brands), quality zones.•Time

Fast Delivery Central Warehouse System, Factory Outlets, less

intermediaries in supply. •Flexibility

Sales executives were empowered to run their respective departments like small business units·.

Managing change- meeting the shifting consumer tastes and preferences.

Bata:

Retail Chain: more than 1100 outlets, the company has opened 70 all new international look outlets across India in the last 10 months.

Product range: Re-invented stylish and comfortable footwear.

Superior Quality

Four-tiered retail format: Flagship Stores, smart and trendy City Stores & Super Stores and traditional Family Stores.

Conclusion:

•A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage). Thus, a competitive advantage enables the firm to create superior value for its customers and superior profits for itself.

•The most important strategy is the Winning Strategy.