Formulation of strategic options in the matrix AODF

Matrix AODF

Tool Set (between external and internal factors) that helps staff to develop fou
r types of strategies: FOR, DO, FA, DA

FOR Strategies: Use strengths to try to seize the opportunities Strategies OJ: T
hey want to overcome the weaknesses opportunities. FA Strategies: Enjoy the stre
ngths to avoid or reduce the repercussions of the threats. DA Strategy: These ar
e defensive tactics that aim at minimizing the weaknesses and avoid threats.

AODF Matrix used to generate viable strategies. Not necessarily identify what st
rategies are best. Not all the strategies identified will be finally selected.
Matrix AODF
SWOT ANALYSIS
OPPORTUNITIES external factor that can benefit the organization if known advanta
ge
STRENGTHS positive internal feature that enables a competitive advantage
Negative internal characteristic weakness can lead to a competitive disadvantage
How can ANALYSIS FOR Fortress used to take advantage and seize the opportunity?
FA ANALYSIS How can the Fortress used to counteract the effects of the threat th
at may undermine the achievement of the objectives?
DO ANALYSIS How can overcome the weakness to take advantage and take the chance?
DA ANALYSIS How can you beat the weak to counteract the effects of the threat t
hat may undermine the achievement of the objectives?
THREATS external factor that may affect the organization if not properly prepare
d
Generic Strategy Formulation
· Leadership in costs · the differentiation · Focus
Three Generic Strategies

Faced with the five competitive forces, there are three potentially successful g
eneric strategies to outperform other companies in the industrial sector:

General Leadership Differentiation Cost or High Segmentation Approach

The Three Generic Strategies
STRATEGIC ADVANTAGE STRATEGIC OBJECTIVE
PERCEIVED BY THE CUSTOMER EXCLUSIVE POSITION OF LOW COST
ALL INDUSTRIAL SECTORS
DIFFERENTIATION
GENERAL LEADERSHIP IN COSTS
JUST A CLIP IN PARTICULAR
O HIGH SEGMENTATION APPROACH
Cost Leadership

The company works to achieve the lowest costs of production and distribution, so
that allows you to set lower prices than their competitors and win a share of t
he market. The key is the concept of "Experience Curve" (unit cost reduction). I
t needs to build facilities capable of producing large volumes efficiently, redu
ce costs based on experience, rigid cost controls and overhead The low cost comp
ared to competitors is the theme that dominates the strategy, although the quali
ty , service and other areas may NOT be
Differentiation

The company focuses on achieving superior performance in any area important cust
omer benefits, valued by the market as a whole. You must create something that i
s perceived by the market as unique. Often prevented from achieving a high marke
t share.
Approach

In this type of business strategy focuses on one or more narrow market segments
rather than go after the entire market. The business gets to know the needs of t
hese segments and will implement a cost leadership or some form of differentiati
on within the target segment. It also prevents obtaining a total market share.
Generic Risk Strategies

Cost Leadership
Relying heavily on the economy of scale and the experience as "barriers to entry
." Major technological changes may occur to nullify the experience or past learn
ing. May neglect innovation by excessive focus on cost. Another competitor is su
ccessful in cost leadership and be able to customers. Another competitor mimics
the characteristics of the products or services and cancels the effect of differ
entiation. the same differentiation and competitors are submarkets within the ta
rget segment and develop.

Differentiation

Or High Segmentation Approach