Glossary of techniques for strategic analysis. This article provides a glossary of analytical techniques, страница 9

If the experience curve is calculated it can be used to assess future costs based on volume increases. This leads to price and other related marketing strategies designed to gain volume to force costs down, often below the level at which most other ®rms can compete. In electronics, for example, the experience curve of larger companies has driven out many competitors who did not match their volume growth: calculators are a good example. The theory is less predictable in industries where there is frequent fundamental model change.

The experience curve is attributed to the Boston Consulting Group, although learning curve theory has been around since the

1940s.

Hedley, B. (1990). Developing strategies for competitive advantage, In: P. N. McNamee (ed.), Developing Strategies for Competitive Advantage, Pergamon Press, Oxford (a selection from the journal Long Range Planning).

Hofer, C. W. and Schendel, D. (1978). Strategy Formulation: Analytical Concepts, pp. 132± 135, West Publishing, St Paul, Minnesota.

McNamee, P. B. (1985). Tools and Techniques for Strategic Management, chapter 3, Pergamon Press, Oxford.

Gap analysis

A very simple technique with limited use. It measures the `gap' between company pro®t or growth targets, and what is likely to be achieved if no new strategic initiatives are taken. The aim is to use this information to measure the size of the strategic task and stimulate thoughts on new strategies.

The technique is mentioned in many books on strategic planning. It is so simple that the various authors can add little to the technique.

Hussey. D. E. (1991). Introducing Corporate Planning: Guide to Strategic Management, 4th edition, chapter 4, Pergamon Press, Oxford. Kami, M. J. (1968). Gap analysis: key to super growth, Long Range Planning, June, 1(4).

Generic strategy matrix

This is a thought provoker rather than a complex method. It is a matrix based on the contention that all organizations have the choice of only three generic strategies: industry-wide differentiated, industry-wide cost leadership, or focus on a particular segment. The contention is not universally accepted.

Porter, M. E. (1980). Competitive Strategy, chapter 2, Free Press, New York.

Global strategy matrix

More of an aid to thinking than a complex technique, this approach has been published in a number of variants. The two references given are thus not to identical matrices, although they are closely related. One variant has the need for globalization on one axis, moving from low to high. The other axis is need for local responsiveness, again moving from low to high. This matrix enables the globalization versus domestic requirements of various businesses to be compared. It may also be used to look at functions, or elements in the value chain, to establish the extent to which each of these should be integrated on a global basis. Questionnaires used in conjunction with the approach turn it into something a little stronger than an idea marshaller.

The alternative matrix studies the degree to which strategy is globalized against the globalization potential of the industry. In practice, there is not a great deal of difference betwen the two matrices.

Hussey, D. E. (1994). Strategic Management: Theory and Practice, 3rd edition, chapter 18, Pergamon Press, Oxford.

Prahalad, C. K. and Doz, Y. L. (1987). The Multinational Mission, chapter 2, Free Press, New York.

Yip, G. S. (1989). Global strategy in a world of nations, Sloan Management Review, Fall.

Group competitive intensity map

Derived from research by McNamee and McHugh, (1990) the technique builds on the work of Porter (1980) for full reference see Strategic Group Mapping. The map displays in quantitative terms, using elipses on a matrix, the location of an industry's strategic groups, the competitive intensity they face and the relative risks to which they are subject. The approach aids the study of competitive behaviour in industries where there are many competitors, where studying each individually would be either impossible, or would yield results that cannot be interpreted.