Strategic Management Essay Example | Topics and Well Written Essays - 3000 words - 10

Strategic Management - Essay Example By positioning themselves in this segment Yes Bank quickly rose to become number 3 in services within a very short time. They also relied on the fact that knowledge is power and appropriately used this as a ploy to gain market share. They offered specialized service in six specific knowledge sectors to satisfy the needs of their target market. It has been stated by Hamel and Prahalad that companies that desist from competing for future market opportunities are doomed and forgo corporate value creation that they had achieved in the past. (Hamel and Prahalad 1990). Yes Bank was founded on the basis of the personal achievements of its founders who realized that personalized banking was a niche area that would create high value. Corporate strategies have been divided into Five Ps by Mintzberg and they are Plan, Ploy, Position, Pattern and Perspective. While each is a separate type of strategy with its attendant qualifications, yet they are usually present in all strategies to some degree. The real difference lies in the fact that one of them will be dominant and others will play a supportive role. (Mintzberg 1987). The Plan is the basis of any strategy and has to be worked out well before commencement and its implementation is by execution of the various steps of the Planned Strategy. A Ploy is radically different in as much that it is a tactic to force the competition to re-think its own strategy. It is a plan that is usually divertive or subversive and may be used or not used as a direct strategy but as an indirect threat to the rival’s plan. At best these are short term strategies aimed at specific situations. The Positioning is a long term objective of corporate operations and requires more attention to detail and a firm commitment to accept the consequences and to overcome roadblocks. It is an assertive policy that will require total cooperation of all