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STRATEGIC LEADERSHIP IN A
COMPETITIVE BUSINESS
ENVIRONMENT
PRESENTER
Prof. Elisante Ole Gabriel
PhD – Strategic Mark., PhD – SERVQUAL, Mech. Eng, MSc-Intn Bus.
Deputy Permanent Secretary - MIYCS
+255-784-455-499
[email protected]
www.olegabriel.com
CONTENT
• Analysing a Business Environment (Micro &
Macro)
• Creating & Sustainable Competitive Advantage
• Competitive Strategies
• Alternative Strategies for Market & Products
Development
• Strategic Thinking = Dreaming the future
• Tips for Emerging Leaders (Challenge = Oppt)
• CONCLUSION
E. Ole Gabriel, 0784-455499
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BUSINESS ENVIRONMENT
ANALYSIS
SWOT/SAOC, PEST & SLEEPTIN
4/8/2015
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SWOT ANALYSIS
• This tool helps to identify the key internal
factors (Strengths and Weaknesses) = SW
• The External factors are Opportunities and
Threats (OT)
• This is modified: Instead of Weaknesses =
Areas for Improvement and Threats =
Challenges: Hence SAOC
• Create, Sustain a Competitive Advantage
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External and Internal Analyses
Environment
Sociocultural
Industry
Environment
By studying the external
environment, firms identify
what they might choose to do
Opportunities and threats
Competitor
Environment
Technological
General
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The Generic Components of
External Environment (PEST)
• Political
• Economical
• Social
• Technological
However, these was found to be limited in
expressing the real macro environment
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New Dimension of Macro
Environment (Gabriel, 2004)
•
•
•
•
•
•
•
•
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From 4 components (PEST) to 8 (SLEEPTIN)
Social
Legal
Economical
Ethical
Political
Technological
International
Natural
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Internal Analysis
By studying the internal
environment, firms identify
what they can do
Unique resources,
capabilities, and core
competencies
(sustainable competitive
advantage)
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Challenge of Internal Analysis
• How do we effectively manage current core
competencies while simultaneously developing
new ones?
• How do we assemble bundles of resources,
capabilities and core competencies to create
value for customers?
• How do we learn to change rapidly?
• HINT: Many leaders fail to properly analyse the
internal environment
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Components of
Internal Analysis
Core
Competencies
Discovering Core
Competencies
Strategic
Competitiveness
Competitive
Advantage
Capabilities
Four Criteria
of Sustainable
Advantages
Resources
• Tangible
• Intangible
•
•
•
•
4/8/2015
Valuable
Rare
Costly to Imitate
Nonsubstitutable
Value
Chain
Analysis
• Outsource
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BUSINESS DIAGNOSIS
(Porters’ Perspective)
4/8/2015
• There are two
fundamental questions
• WHAT MAKES AN
INDUSTRY
ATTRACTIVE? (PFFF,
for Industry Analysis)
• WHICH POSITION
GIVES A FIRM
SUPERIOR
PERFORMANCE?
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(Generic Strategies)
Industry Analysis
Porter discusses the FIVE FORCES that
determine the nature of competition in
an industry :–
• Threat of new entrants,
• Bargaining power of customers,
• Bargaining power of suppliers,
• Threat of substitute products or
services,
• Rivalry among industry competitors.
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FIVE FORCES FRAMEWORK – for
INDUSTRY ANALYSIS (By Michael
Porter)
Threat of
New Entrants
Bargaining
Power of
Suppliers
Rivalry Among
Existing Competitors
Bargaining
Power of
Buyers
Threat of
Substitutes
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Lessons from Industry Analysis
• Industry analysis is the starting point of
any strategy.
• Business Leaders have to understand the
structure of the industries that they are
competing in.
• Hint: The impact of the Competitive
Forces varies from one market to another!
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GENERIC STRATEGIES
• In pursuing competitive advantage, a company
also has to choose its scope –
• Whether it will target a particular segment or go for
a broad market (e.g National Vs EAC Market).
• These choices define four basic approaches to
competitive advantage.
• Which set of choices a company makes
determines which “generic strategy” as Porter
calls it, a company is following.
• Avoid being STUCK-IN-THE MIDDLE
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GENERIC STRATEGIES (By M Porter)
Broad
Cost
Focus
Cost
Broad
Differentiation
Focus
Differentiation
Strategic Advantage
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STUCK-IN-THE MIDDLE
• Failure to make a choice means that a company is
stuck - in - the middle, with no advantage.
• The result is poor performance.
• Each Manager ought to be strategic on choosing the
strategies
• A Strategy which is suitable for one market might not
be suitable for another.
• Strategy shift from one strategy to another ought to be
done timely!
• You need to THINK STRATEGICALLY to avoid being
stuck – in – Middle.
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Three major Types of Mind
(I) GREAT MINDED PEOPLE (Make things
happen)
(II) AVERAGE MINDED PEOPLE (Watch
Things Happening)
(III) SIMPLE MINDED PEOPLE (Wonder Why
Things are Happening?)
Where do you belong? Your people with Helicopter?
E. Ole Gabriel, 0784-455499
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Why Strategic Thinking for
Emerging Leaders
• Changes in Market Structure of the Film Industry
• Limited Resources on sectoral needs
• Cultural Dynamics which can effect the decisions of
customers in the Market
• Micro & Macro Factors
• Impact of Technology
• Changes in Behavior of customers in line with imports
• Changes on the Political dynamics & Regulations
E. Ole Gabriel, 0784-455499
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Six Commandments of Strategic
Leadership (By Gabriel E, 2002)
1. Create superior performance
2. Sustain superior performance
3. Understand your core functions (Your Value?)
4. Know your Competitor as you know yourself
5. Cope with the speed of Technology. AND
6. Make use of Feedback from your Internal and
external customers for Synergy (1 + 1 > 2)
HINT: Always be Visionary with a Dream like Dr.
Martin Luther King Jnr. (1963 for USA)
E. Ole Gabriel, 0784-455499
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Martin Luther King Jnr. (At the Age of 29yrs)
I Have a Dream..
..We shall be judged not by the color of
our skin but the content of our character!
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I Have a Dream … Dr. Luther King Jnr
(1963, USA)
• …That one day, This Nation will raise up..,
• Live out its true meaning of its freedom
• We will all choose to be self evident, that all people
are created EQUALLY…I have a dream..that
• ..All of us will be able to sit on a table of
brotherhood…I have a dream…that
• My four little children will one day live in a
Nation…where they will be judged not by the colour
of their skin but by the content of their character…I
HAVE A DREAM!
I’ve been to the mountaintop..A day before assassinated)
(By M. Luther King Jnr., At the Age of 39 Yrs in 1969)
We've got some difficult days ahead.
But it really doesn't matter with me now,
because I've been to the mountaintop.
And I don't mind.
Like anybody, I would like to live a long life. Longtivity
has its place.
But I'm not concerned about that now.
I just want to do God's will.
And He's allowed me to go up to the mountain.
And I've looked over.
And I've seen the Promised Land.
I may not get there with you.
But I want you to know tonight, that we,
as a people, will get to the promised land!
And so I'm happy, tonight.
I'm not worried about anything.
I'm not fearing any man!
Mine eyes have seen the glory of the coming of the Lord!!
The Dream of Elisante Ole Gabriel for
Tanzania & Africa (2012)
• …. I have a dream that One day
Tanzania will be the richest
Country in the African Continent
• …… Africa will also be the most
powerful continent economically
on the planet Earth
• …. Africans need to develop the
following for its Youth: Moral
Capital, Innovativeness,
Homogeneities and
Perseverance (MIHoP)…!
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TIPS FOR
BUSINESS LEADERS in Africa
• The Success of Business depends on
Innovative mind
• Manage Competition Strategically
• There is no room for losers but winners in the
competitive Business Environment
• Entrepreneurship Spirit not just skills should be
the driving force.
• Convert Threats to Opportunities ( Successful
life even without Limbs (A Case of Nick, UK)
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CONCLUSION
• It is the right strategy
which can take you to the
right Business position.
• The Competitive Forces
ought to be properly
addressed. AND
• Make sure you always
offer Value to your Market
and not just products!
• THANK YOU!!!
+255784-455499
E. Ole Gabriel, 0784-455499
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