Category Archives: Strategy Theory

Theory discussion

The art of saving our planet

Since the beginning of the 21st century, former presidential candidate and vice president Al Gore travelled the world raising awareness about the effects of global warming. In 2006, his world famous movie “An Inconvenient Truth” hit the movie theatres and people from all over the world flocked to the movie theatres to watchthis movie. It […]

Is Your Business Meeting Its Regulatory Responsibilities?

All industries are covered by legislature governing their operational responsibilities. These responsibilities may include anything from finances and employee rights, to health and safety or manufacturing guidelines. The very nature of regulatory responsibilities means that they are, for the most part, governed by law. Therefore, not adhering to them could spell disaster for your company […]

Comparison of Business Strategy Frameworks

Strategic management literature has established multiple popular frameworks which are used by decision makers to develop a roadmap for business strategy. Some of the popular frameworks for business strategy are Porter’s 5 forces model, BCG / GE McKinsey Matrix,  PEST analysis and the Ansoff Matrix. However, all these frameworks focus on factors which are external […]

PEST Analysis

PEST analysis stands for “Political, Economic, Social, and Technological analysis“. It is a framework for Strategic analysis of markets to evaluate macro-environmental factors used in the environmental scanning component. Some analysts add the Legal factors to the analysis. Thus when the PEST analysis is expanded to incorporate legal and environmental factors; this is called a […]

Value Creation Strategy – Business Model

To create sustainable, long-term value for all the stakeholders of a firm, it is important to explicitly establish an appropriate stakeholder value target. However what would constitute the “success” condition for all the stakeholders of a firm would vary from the goals of individual stakeholder. For an investor in a firm, value may be seen […]

Market Entry Strategy for International Business

An international market entry strategy is defined as the planning and implementation of delivering goods or services to a new target international market. It often requires establishing and further managing contracts in a new foreign country. Few firms successfully operate their business in a niche market without ever planning to expand into new markets (mostly […]

Ansoff Matrix

The Ansoff Growth matrix is a tool that helps firms decide their product and market growth strategy based on objective analysis of industry structure and product type. It is one of the more popular tools for strategic management analysis, in the scenario of deciding the case for a related diversification of businesses and firms, which […]

Michael Porter’s 5 forces model

Porter’s 5 forces model is one of the most recognized framework for the analysis of business strategy. Porter, the guru of modern day business strategy, used theoretical frameworks derived from Industrial Organization (IO) economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market. This theoretical framework, based on 5 […]

Generic Strategies for the Ultimate Competitive Advantage

“An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage” ~ Jack Welch Today, the firms operate in an even more competitive industry dictated by an ever unparalleled dynamism. Jack Welch never said anything more meaningful. In current times, when change is the only thing that is constant, […]

How to build a Successful Business Model or a Business Plan?

Business Models are crucial for the success of an enterprise or even a startup. So what do you need to focus on while building up your business from scratch? A Business model or a Business Plan (B-Plan) helps you to plan this properly. What are the firm’s core capabilities? How does the firm deliver value […]

Growth Strategies of Web Based New Generation Firms

The cyber world has really come alive with the onslaught of WEB 2.0 technologies. Today, many start ups are being formed by students and entrepreneurs across the world. The web based firms with often no brick and mortar presence have been generating enviable returns, considering the low investments made on them. No wonder, students and […]

The GE-McKinsey matrix and its Limitations for Business Portfolio analysis

A business portfolio is defined as a collection of Strategic Business Units, commonly called SBUs, that make up a firm or a corporation. The optimal business portfolio (a dream for all organizations) is the combination of multiple SBUs such that it helps to exploit the most attractive industries or markets, keeping in mind the competitive […]

How the internet affects Porter’s generic strategy models

In the emerging global economy, e-commerce and e-business have increasingly become a necessary component of business strategy and a strong catalyst for economic development. Michael Porter (1980) has argued that a firm’s strengths ultimately fall into one of two headings: cost advantage and differentiation. By applying these strengths in either a broad or narrow scope, […]

A winning framework for market entry strategies

A market entry strategy is the planned method of delivering goods or services to a new target market and distributing them there. This article talks about the critical issues that needs to be considered while entering a new market and suggests a list of actions that would mitigate the risks involved better, and hence successfully enter the market.