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Study of the question

The tools of assistance to the strategic decision provide a base from which can be worked out a strategic decision.

History

The first tools of assistance to the strategic decision appeared in years 1960 in the United States. Most known is the model SWOT, acronym of the English terms Strengths (forces), Weaknesses (weaknesses), Opportunities (opportunities) and Threats (threats), also called model LCAG (because proposed by four professors of the Harvard Business School, Learned, Christensen, Andrews and Guth in 1969).

The tools and grids for analysis evolved/moved thanks to the improvements made by the researchers in strategy (in particular Igor Ansoff, Michael Porter, Henry Mintzberg, Jay Barney or W. Chan Kim and Renee Mauborgne), like by the cabinets of consultants of the type Boston Consulting Group, McKinsey & Company or Arthur D. Little

The strategy of company basically consists in answering three questions:

Which model of creation of Value to use in order to ensure of the durable profits the company (which is its economic model)?
can one avoid the Imitation of this model of creation of value by the competitors, in order to release an competitive advantage?
On which Périmètre this model of creation of value is it deployed?

These three dimensions, Value-Imitation-Perimeter (or VIP ), summarize the main part of the strategic questions

Methodology

The strategic analysis in general follows a step in six stages:

1. Cutting of the organization in Spheres of Strategic Activity or DAS

2. Competing analysis of each DAS by means of the model SWOT. For the external part of SWOT, one uses in particular the model of the 5 forces of competition proposed by Michael Porter

3. Choice of a generic strategy for each DAS: strategy of price, strategy of differentiation or strategy of focusing

4. Arbitrations of resource allocation enters the various DAS thanks to tools of the type Matrice BCG or Stamps McKinsey

5. Evolution of the perimeter of activity towards new DAS: diversification, internationalization, vertical integration or externalisation, fusions and acquisitions, alliances or partnerships

Strategies

In a competitive market, it is vital for the companies to seize waitings and the market evolutions market research, but also the strategies of the competitors (competing day before) and economic Intelligence. They can also choose various strategies to be distinguished from the competitors and to take a lead in the markets

Strategy of differentiation, dapar marketing (adaptation to the market), the innovation and prices. “The company has two essential functions and only these two there, marketing and the innovation. Marketing and the innovation produce results, the remainder is only costs” (Peter Drucker).

the Marketing passes by the adaptation to the market of the products and services, of the type of Distribution, the Communication and the development of notoriety and the mark S. a recognized mark restores with the company which has it a kind of “monopoly”: only Rolls-Royce can manufacture this type of Automobile S. names (AOC for example) enter this strategy.
the Innovation consists in creating new produced S and thus of new markets, on which the innovating company will be alone, at least for a time.
It also consists in improving the methods of production to reduce the costs and to improve the Compétitivité as regards selling price.

Strategy of domination by the costs. Ddance this case the company will seek to minimize its costs to take a lead in its market.

Strategy of focusing: the company will be focused on a trade or a particular market

strategy of diversification: the company will seek to develop on new markets or new trades.

external Development strategy: by alliances or fusion-acquisitions, the company seeks to grow bigger in the face to obtain a dominant Market share (position of leader or coleader), being able to go until eliminating from the competitors less better placed, or at least neutralizing them.

Internationalization, form particular of drawing development favors economic Mondialisation.

External bonds

Strategic
International association of Strategic Management

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