Macro Environment
1. Because of the high inflation rates among countries all over the world, it is very difficult for the
company to keep the existing low-cost leadership strategy.
Possible Strategic Problems
Should and can the company switch from low-cost leadership to differentiation?
Should and can the company be less reliant on low-cost leadership and switch to
the combination strategy? What combination strategy is to be used?
2. Because of the Sino-American trade conflicts, it is expected to be more difficult for a Chinese
company to stay competitive in the American market and even the European market.
Possible Strategic Problems
Should the company retrieve from the international market at all?
Should the company switch its focus to the African and Asian markets? What
are the chosen new markets?
Does the company need to review the existing business model in the American
and even the European markets?
3. Because of the changing demographic and regulatory environments, it is expected that the
industry will enjoy a bright future.
Possible Strategic Problems
Should the company adopt a low-cost leadership or a differentiation strategy to
capture the future market?
Should the company give up the existing focus strategy and enter the broader
market? What is the chosen mode of entry to the broader market?
4. Because of the changing technology, it is more cost-effective to produce massively.
Possible Strategic Problems
Should the company go international? If yes, should the company adopt local
adaptation?
What is the chosen mode of entry to the international market?
Competitive Environment
1. The number of powerful competitors in a market is increasing and the market share of a
company is decreasing.
Possible Strategic Problems
Should the company retrieve from that market segment?
Should the company diversity into a new market segment / geography?
Should the company focus on a niche market segment?
Should the company develop further differentiation?
2. Because of the changing registration and licensing regulations, the major barriers to entry are
eliminated.
Possible Strategic Problems
Should the company adopt a low-cost leadership or a differentiation strategy to
create additional barrier to entry?
3. The company is currently not adopting local adaptation in each of the EU countries. While sales
in some countries are good, sales in other countries are bad.
Possible Strategic Problems
Should the company adopt local adaptation in each of the EU countries? And
what is the amount of local adaptation?
Should the company adopt local adaptation to all business functions and all of
the marketing 4Ps?
4. Because of the new market demand, the existing business model does not allow the company to
earn as much as it did.
Possible Strategic Problems
Should the business model be changed?
Should the company retrieve from the whole business?
Should the company give up the local market and use the same existing
business model to compete in the international market?
Internal Environment
1. One of the business lines has not been doing well over the past five years. / One of the business
lines is entering the decline stage.
Possible Strategic Problems
Should this business line be divested?
Should the company consider merging with a stronger and complimentary
partner?
2. The company is selling well with its differentiation strategy. However, the costs of running this
strategy is increasingly high.
Possible Strategic Problems
Should the company switch to the combination strategy and be less reliant on
the differentiation strategy? What combination strategy is to be used?
3. The company has developed a new business line targeting the high-end market through the
differentiation strategy.
Possible Strategic Problems
What is the focus of the differentiation strategy?
4. One of the business lines is facing lots of scandals.
Possible Strategic Problems
Should this business line be categorized as “dog” under the BCG Model and be
waiting for divestiture? Or should this business line be categorized under
“question mark” under the BCG Model requiring additional investment and
attention?