Page 39 - Stakis Consolidated Teaching Note

Stakis may be classed as a market leader and as such is
suitable for analysis by Porter's ‘stage of industry

development’ model. In this way the strategic options

open to the company can be set out.

Up until 1991 Stakis Plc operated as if it were a family firm.

The selection of Andros to the position of Chief Executive
was effectively maintaining family dominance of the key

posts and, it must be assumed, of the strategic decisions.

During this period the company tried to achieve

differentiation by creating unique service features.
However, in terms of generic strategy, cost is the

fundamental feature, particularly in a period of recession.

The comparison of the strategic position in the different
periods is shown below.

.

Strategic Position

Growth Maturity Decline
-Cost Leadership -Redefine scope

-Keep ahead -raise barriers to -Divert peripheries
of the field
Leader entry -Encourage
-Deter competition departures

1991-Present Future Pre-1991