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strategY
manoJ
thomaS
whaT ?
A multinational FMCG company has been operating in India since the
last six years. A product, A, when launched was an instant success.
The primary reason was the differentiation that made the then
market leader obsolete.
For the last couple of years, the segment’s increasing profitability
has led huge FMCG firms introducing similar products in the market.
This has led to loss of market share. The market monopoly has been
reduced to a state of almost perfect competition.
You are the brand manager of A.
Formulate a instant plan of action and a long term strategy for A.
strategiC
managemenT
A strategy is an integrated
and co-ordinated set of
commitments and actions
designed to exploit core
competencies and gain a
competitive advantage.
A strategy is an integrated
and co-ordinated set of
commitments and actions
design to exploit core
competencies and
gain a competitive
advantage.
Core Competencies
Core Competencies are capabilities that serve as a
source of competitive advantage
for a firm over its rivals.
Competitive Advantage
Competitive Advantage is achieved when a firm implements
a strategy competitors are
unable to duplicate or find too
costly to imitate.
Capabilities Description
Valuable Capabilities • Help a firm neutralize threats or
exploit opportunities
Rare capabilities • Are not possessed by many others
Costly-to-imitate Capabilities • Historical
• Ambiguous
• Social Complexity
Non-substitutable Capabilities • No strategic equivalent
Risk
Risk is an investor’s
uncertainty about the economic
gains or losses that will result
from a particular investment.
frameworkS
1.Environment
2.SWOT
3.Porter’s Five
Forces
4. BCG
5. GE/McKinsey
1. Environment Analysis
P
E
S
T
1. Environment Analysis
Political/Legal
E
S
T
1. Environment Analysis
Political/Legal
Economic
S
T
1. Environment Analysis
Political/Legal
Economic
Sociocultural
T
1. Environment Analysis
Political/Legal
Economic
Socio-cultural
Technological
1. Environment Analysis
Political/Legal• Taxation Laws
• Deregulation
• Labour laws
• Political stability
1. Environment Analysis
Economic• Inflation
• CRR/Repo Rates/Interest rates
• Trade deficits, surpluses
• Savings rate
• GDP
1. Environment Analysis
Sociocultural• Demographics
• Women in workplace
• Career planning
• Job culture and attitude
• Concerns about Environment
1. Environment Analysis
Technological• Product innovations
• Communication technologies
• Telephony
• Data
• R&D trends
GE/McKinsey Matrix
Industry Attractiveness
• Market Growth Rate
• Market Size
• Demand Variability
• Industry Profitability
• Industry rivalry
• Global Opportunities
• Macroeconomic Environment
GE/McKinsey Matrix
Business Position Strength
• Market Share
• Growth in market share
• Brand equity
• Distribution channel access
• Production capacity
• Profit margins relative to
competitors
GE/McKinsey Matrix
questionS??
Varun Kumar Gupta
BM 2009-11
97.98.59.27.99
