Page 16 - PowerPoint Presentation

STRATEGY AND GOVERNANCE

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

• Treat 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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