2. Strategy Basics,Saatchi & Saatchi Training,Definitions: Strategy,Stratagem:An artifice or trick designed to outwit and surprise the enemyA device or scheme for gaining advantageStrategy:The art of a commander-in-chief; projecting and directing the larger military movements and operations of a campaignGeneralship or the art of conducting a campaign; artifice or finesse generally,Tactics:The science or art of maneuvering in presence of the enemy; purposeful procedure,Definitions: Tactics,Strategy differs materially from tactics; the latter belonging only to the mechanical movement of bodies set in motion by the former,Whats the difference?,Shang chang ru zhan chang,Marketing as Warfare,The 36 Strategies,Not a new idea in China,Bing Fa: Sun Tzu Tei Wang Gung Wu Tzu Sun Bin (And a couple of hundred others),Not a new idea in China,Know when to fight, and when not to Obtain the wholehearted support of your troops Be prepared to seize favourable opportunities Free yourself from interference by superiors When the time is right, act decisively and swiftly,Sun Tzu: Five Essential Components of Victory,Some Chinese Ideas on Strategy,The highest form of victory is to conquer by strategy The opportunity for victory is provided by the enemy Basic elements combine into unique strategies Keep plans as dark as night, move like a thunderbolt Attack when (& where) the enemy is least prepared,Sun Tzu:,Some Chinese Ideas on Strategy,Know yourself, Know your enemy. 100 battles, 100 victories,Sun Tzu:,Some Chinese Ideas on Strategy,Strategy starts with a Map,The strategic process consists of: Defining where we are Identifying where we could go Selecting where we want to go Identifying how to get thereMaps help show this simply, and point the way Getting the map right is a great start You can map anything,Strategy starts with a Map,Great brands are slanted in the minds of consumersGiving them unique territory to own advertising helps create enduring advantages for brands,Positioning is Strategy,The Business Model,An Umbrella or Tent broad enough to cover everything the company wants to doToo often a wish listBased on me-too?thinking,Tactics,Tactics,Strategy,Top Down,Tactics,Strategy,The Military Model,Much more hard-nosed Based on what is likely to succeed Core elements: surprise / focussed force,Strategy,Bottom Up,After Michael Porter,STRATEGIC ADVANTAGE,Cost / Productivity Leadership,Focus / Niche Leadership,Product / Service Leadership,Low Cost Position,Particular Segment(s) Only,Market-wide,Uniqueness Perceived by Customer,Three Generic Business Strategies,PRO-ACTIVE STRATEGIES,Focus / Niche Leadership,Product / Service Leadership,Market Leader,REACTIVE STRATEGIES,Challenger or Follower,Competition Avoider,Strategies for Competitive Advantage,PRO-ACTIVE STRATEGIES,Focus / Niche Leadership,Product / Service Leadership,Market Leader,REACTIVE STRATEGIES,Challenger or Follower,Competition Avoider,Market Expansion Share Protection Pre-emptive Action,Strategies for Competitive Advantage,PRO-ACTIVE STRATEGIES,Focus / Niche Leadership,Product / Service Leadership,Market Leader,REACTIVE STRATEGIES,Challenger or Follower,Competition Avoider,Market Expansion Share Protection Pre-emptive Action,Cover / block competitive moves,Strategies for Competitive Advantage,PRO-ACTIVE STRATEGIES,Focus / Niche Leadership,Product / Service Leadership,Market Leader,REACTIVE STRATEGIES,Challenger or Follower,Competition Avoider,Market Expansion Share Protection Pre-emptive Action,Head to Head Flanking Strategies Encirclement,Cover / block competitive moves,Strategies for Competitive Advantage,PRO-ACTIVE STRATEGIES,Focus / Niche Leadership,Product / Service Leadership,Market Leader,REACTIVE STRATEGIES,Challenger or Follower,Competition Avoider,Market Expansion Share Protection Pre-emptive Action,Head to Head Flanking Strategies Encirclement,Cover / block competitive moves,Follow the leader,Strategies for Competitive Advantage,PRO-ACTIVE STRATEGIES,Focus / Niche Leadership,Product / Service Leadership,Market Leader,REACTIVE STRATEGIES,Challenger or Follower,Competition Avoider,Market Expansion Share Protection Pre-emptive Action,Head to Head Flanking Strategies Encirclement,Market Niche By-Pass Competition,Cover / block competitive moves,Follow the leader,Strategies for Competitive Advantage,PRO-ACTIVE STRATEGIES,Focus / Niche Leadership,Product / Service Leadership,Market Leader,REACTIVE STRATEGIES,Challenger or Follower,Competition Avoider,Market Expansion Share Protection Pre-emptive Action,Head to Head Flanking Strategies Encirclement,Market Niche By-Pass Competition,Cover / block competitive moves,Follow the leader,Maintain Status Quo,Strategies for Competitive Advantage,Leader,Strategies versus the Leader,Competitor,Leader,Strategies versus the Leader,Competitor,Head to Head,Leader,Strategies versus the Leader,