Marketing Strategy and Competitive Positioning pdf ebook

Figure 2.9
SWOT strategic 
implications
Strengths
Weaknesses
Exploit existing
strengths in
areas of
opportunity
Opportunities
Threats
Use existing
strengths to
counter
threats
Build new
strengths first to
take advantage
of opportunities
Build new
strengths to
counter threats

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42
CHAPTER 2 STRATEGIC MARKETING PLANNING
domination goals might find short-term profit maximisation at odds with this. Many man-
agers are judged on their annual performance, as opposed to performance over the long 
term. Hence, they might be encouraged to pursue short-term objectives at the expense of 
building a stronger market position over a longer timescale (see the discussion in Chapter 1 
on stakeholder motivations).
The core strategy of the organisation is a statement of how it intends to achieve its objec-
tives. If, for example, the long-term objective is to be market leader in market X, with a 
share of market at least twice that of the nearest competitors, the core strategy may centre 
on using superior technology to achieve this, or lower prices, or better service or quality. 
The core strategy will take advantage of the firm’s core competencies and bring them to 
bear wherever possible on the KFS to achieve the corporate objectives of the company.
The core strategy pursued may vary at different stages of the product’s or service’s life 
cycle. Figure 2.10 shows alternative ways in which a company may go about improving the 
performance of its products or services. These are choices of strategic focus.
A basic choice appears to exist (more on this later) between attempting to increase sales 
and improving the level of profitability achieved from existing sales (or even reduced sales 
in a declining market). When the objectives are to increase sales, again two fundamental 
approaches may be taken: either to expand the total market (most easily, though not exclu-
sively, achieved during the early growth stages of the life cycle); or to increase share of the 
existing market (most often pursued during the late-growth/maturity phases).