MARKETING STRATEGY ‘By Elisante Ole Gabriel (Tanzania) Chartered Marketer email@example.com, www.olegabriel.com +255-784-455-499
What exactly is a strategy? • This is a unified, comprehensive and integrated plan that relates the strategic advantages of the firm to the challenges of the environment. It is designed to ensure that the basic objectives of the enterprise are achieved through proper execution by the organization, TIMELY. • The concept originated from the Greek word “Strategos” which means chief in command.
STRATEGY PROCESS • It is the manner in which a strategy comes about, stated in number of questions. Strategy process is concerned with the How? Who, and When? Of the strategy. How is and when should, the strategy, be made, analysed and dreamt-up, formulated, implemented, changed and controlled. Who is involved and when do the necessary activities take place.
THE TWO MAIN STRATEGIC PERSPECTIVES In summarizing the the generic perspectives of strategy, two major categories are put in place. • DELIBERATE APPROACH (Igor Ansoff) Long-range planning is the way forward. • EMERGENT APPROACH (H Minzberg) It is better to adapt what is happening and let the strategy emerge to suit the current situation. Interaction is the way forward.
HIERARCHY OF STRATEGY I: Corporate level II: Business level III: Functional level IV: Operating level
FACTORS THAT INFLUENCE STRATEGY There are two major sources of factors that can influence strategy. The sources are: • THE FIRM (Goals and values, Resources and capabilities, Structure and systems) • THE INDUSTRY ENVIRONMENT (Vendors, customers and Competitors - VCC)
THE LINK BETWEEN Strategy, Firm and Environment • THE INDUSTRY • ENVIRONMENT • Vendors • Customers • Competitors • THE FIRM • Goals and values • Resources & Cap. • Structure and Systems STRATEGY
NECESSARY ‘FITS’ OF STRATEGY It is necessary to have the fit between the following: • Strategy and the internal Organization structure • Strategy and operating capabilities & skills • Strategy and the allocation of budgets and staff size • Strategy and internal policies and practice
STRATEGY FORMULATION In formulating a strategy, mangers should bear the following aspects in mind: • Innovative ways the firm can improve what is doing now • Ferreting out new opportunities for the organization to pursue • To develop a better positioning of the firm • Sustain the Competitive Advantage
Devising ways to meet the threats • Encourage individuals within the firm to be innovative • Direct resources to more productive centres (eg. In lean production) • Deciding when and how to diversify • Manage the business portfolio strategically (BCG)
Making a choice • The critical entrepreneurial skills is making a strategic choice that keep the organization in position to enjoy sustained success. • The right strategic choice for one organization may not be right for another. It all depends on the situation of each. Moreover, even the right strategy for one organization NOW may not be the right one for the same organization in the FUTURE.
ELEMENTS OF A SUCCESSFUL STRTATEGY • Long-term simple and agreed objectives • Profound understanding of the competitive environment • Objective appraisal of resources • EFFECTIVE IMPLEMENTATION
LAST BUT... ‘All organizations, being manufacturing or of service industry, MUST find a lubricated strategy-environment fit’. The lubricant is the business knowledge (E. Gabriel, 2002) This is very important in any industry. Your strategies should fit to the environment and not the environment to fit in your strategies.
The end Thank you !!!