Page 11 - 5.2 i. Manac Finance ITC Summarised Notes

STRATEGY AND GOVERNANCE

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Selecting Appropriate Strategies

• The financial implication of each strategy as well as the
impact on all stakeholders must be considered before an

appropriate strategy is selected.

• Product and market strategies.

• Competitive strategies: lowest cost producer / provide a unique
product or service.

• Porter’s Five Forces Model can be used to analyse the industry’s
competitive structure:
• Rivalry amongst existing competitors

• Threat of substitute products/services

• Threat of new entrants
• The negotiating power of customers

• The negotiating power of suppliers

• Growth strategies: Acquisitions / strategic alliances / organic
growth.

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