This PPT slide, part of the 79-slide Strategic Planning: Process, Key Frameworks, and Tools PowerPoint presentation, presents a framework for strategy formulation based on Porter's generic strategies. It categorizes strategies into four distinct types, organized along two axes: market segment and strategic focus. The horizontal axis indicates the breadth of the market segment, ranging from broad to narrow. The vertical axis represents the strategic focus, distinguishing between cost and differentiation.
In the upper left quadrant, we find the "Cost Leadership Strategy." This approach targets a broad market segment while aiming to achieve the lowest operational costs. It’s designed for organizations that seek to attract a large customer base by offering products or services at competitive prices.
The upper right quadrant features the "Differentiation Strategy." Companies employing this strategy focus on a broad market, but emphasize unique product features or superior service. This approach aims to create perceived value that justifies a premium price.
Moving to the lower half of the matrix, the left quadrant is labeled "Cost Focus." This strategy narrows the market segment while maintaining a focus on cost. It’s suitable for businesses that target specific niches, offering lower prices to a select group of customers.
The lower right quadrant is dedicated to "Differentiation Focus." Similar to the broader differentiation strategy, this approach hones in on a specific market segment, providing unique offerings tailored to that niche.
This framework serves as a guide for executives to evaluate their strategic positioning and make informed decisions about market engagement. Understanding these strategies can help in aligning organizational capabilities with market opportunities.
This slide is part of the Strategic Planning: Process, Key Frameworks, and Tools PowerPoint presentation.
MBB/Big 4 style presentation that provides a holistic approach for undertaking strategic planning. While covering the traditional strategic planning approach, the document touches on adaptations that may be used in an unpredictable environment.
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