1. Topic 5 :Strategy Determination
Strategic vision defined
Customer value
Strategies for growth
Options for market entry
Driving forces of internationalisation
Vicious or virtuous spirals
Using retailing as an example

2. Defining the Business You are In ? e.g. retailing
Horticulture - selling plants and related products
Providing a comprehensive gardening serv
Making gardening easier
Filling people’s disposable time
Entertainment/leisure
Fulfilling people’s dreams!

3. MICHAEL PORTER’S Value Chain

4. Customer Driven Value System
Consumers
Needs
Demographic
Socio-economic
Geographic
Lifestyles
Context
Occasions
Save money
Be exclusive
Save time
Find solutions
Save effort
Have fun
VALUE
NEEDED
Resources
Solutions
Buying
Human resources
Skills/creativity
Technology
Information
Property
Product range
Prices
Product quality
Service levels
Ambiance
Locations
VALUE
PROVIDED
Financial
Customer
Promotion
Market share
Profits
Share price
Satisfaction
Loyalty
Word of
mouth
Adverts/PR
Internet
Brand image
VALUE
COMMUNICATED

5. Product-Market Matrix
Existing
Related
New Markets
Consolidation
Penetration
Product
improvements
Market-led expansion
Existing
New market segments
New ranges
Assortment
manipulation
New services
New outlet types
Growth
Related
New Products
Diversification
New (unrelated) product categories
Adapted from: Ansoff , Knee and Walters, McDowell Mudambi .

6. International expansion
Existing proposition
Exploring Strategic Space
Maximum
viable share
New products/
services
New segments
Grow market share
Different segments
Adjacent segments
Unrelated products/
services
Related products/
services
Existing market segment(s), assortments, trading areas, formats and channels
National expansion
Modification
of format
International expansion
Different format
New formats
Linked
channel
Geographical
development
Separate channel
New channels

7. Retail Value Chain (A process-oriented view of value)
Firm infrastructure
Human resources
Margin
Technology development
Procurement
Supply
chain
Store
locations
and design
Marketing and
promotion
Store operations
Service
Margin
(A process-oriented view of value)
Adapted from: Porter ; McGee.

8. Motives for Acquisitions & Mergers
Diversification e.g., Kingfisher Group
Defensive e.g., Carrefour and Promodes
Market Share/ Economies of Scale
e.g., Morrisons - Safeway
Co-op Group - Somerfield
Synergy/ Skills Transfer
e.g., Habitat and Mothercare
Alternative Channel Development
e.g., Next – Grattan
Internationalization
e.g., Wal-Mart – Asda
Why do firms divest?

9. Driving Forces of Internationalisation

10. Options for International Market Entry