I DS C I T

Strategic Disadvantage

Agenda

1. Why we need Strategy?2. The different levels of strategy making?3. What is strategic disadvantage?4. How are strategic disadvantages identified?5. Who are responsible?6. Impact of Strategic Disadvantage7. Case Study8. Conclusion

Why we need Strategy

Competitive Advantage Cost advantage Market Dominance New product development Contraction/Expansion Price Leadership Global strategy Reengineering Downsizing Restructuring

Strategic Analysis

Strategic Selection

Strategic Implementation

The different levels of strategy making

Top Level Middle Level Root Level Department/ Function/SBU/ Location specific

strategy Broad and generic level business and

corporate strategy for the whole organization

What is strategic disadvantage?

A strategy that puts your company in a disadvantageous position in it’s future endeavours in the competitive market

A few inevitable elements of disadvantage that restricts you to make a dynamic strategy

A few factors which turns a rather successful strategy, a failure

How are strategic disadvantages identified

Progress fails to keep up with expectations Strategic conflicts becomes apparent Existing strategies fails to give solution to

real life business problems Practiced strategies and policies resists

change management and dynamism for practical business needs

When major change happens in the domain of business and the existing strategies fail to deliver

Who are responsible ?

Internal Factors ? Corporate culture Strategy Resourcing Implementation constraints Rigidity towards change management

External Factors ? Change in market dynamics Counter strategy by competitors Change in consumer behaviour Unknown factors

Incorrect strategy ? Incomplete analysis Incompetent Management

Impact of Strategic Disadvantage

Loss of customer, reputation, brand value and market share Bottleneck in decision making

Conflict of interest between short term and long term strategies, one strategy comes in the way to the other one  

A rather effective strategy becomes a handicap and permanent overhead for the lack of proper implementation plan

Competitive disadvantage acts against catering business interests

One Strategy not only restricts future interests but causes unexpected back fires

OPERATION ENDURING FREEDOM

Case Study

THE ANTI TALIBAN WAR “OPERATION ENDURING FREEDOM” FOUGHT BY THE US ARMY AND ITS

ALLIANCE IN AFGHANISTAN, HAD ITS OWN STRATEGIC DISADVANTAGES.

DESPITE BEING A FAR SUPERIOR MILITARY POWER, AND HAVING LATEST TECHNOLOGY AND WEAPONS ON THEIR SIDE, THE US ARMY LOST MORE THAN

800 SOLDIERS SINCE 2001 AND FAILED TO ACHIEVE MOST OF THE PRIMARY OBJECTIVES OF

THE WAR FOR MORE THAN A FEW REASONS

IT’S A CLASSIC CASE OF STRATEGIC DISADVANTAGE

Case Study : Strategic Disadvantages of US led Army in

Afghanistan

The Historical Background of Strategic Blunders

To resist Russian invasion in 70’s, the US Govt trained, funded, supported and sold weapons to the Afghan, Tazik, Uzbek, Kirghiz, and Pashtun tribes mostly controlled by local warlords.

After Soviet troops withdrew in 1989, the Kabul government fell to the Mujahedeen in 1992

Taliban was initially considered to be a potential source of stability, and they had the US and UN support, everybody turned a blind eye towards the massive violation of human rights and let Taliban rule freely.

Taliban became powerful enough to become one of the global centres of the Islamic Extremists Activities.

Terrorist groups like Al Qaeda became powerful enough

Global terrorist activities rose with 9/11 being the ultimate eye opener.

Strategies Disadvantages

US Administration’s strategic policy was that it would not distinguish between terrorist organizations and nations or governments that harbored them.

The US and UK forces led the aerial bombing, in support of ground forces supplied primarily by the Afghan Northern Alliance.

The United Nations did not authorize the U.S.-led invasion of Afghanistan.

Ground attack were feeble and with sheer lack of territorial knowledge of warfare, Taliban insurgency operations were powerful and frequent . A number of US soldiers were killed during the operation.

Operation Enduring Freedom

Strategies Disadvantages

After toppling the Taliban Govt. Global political pressure forced the reluctant US led operation masterminds to install a democratic system in Afghanistan

No “Peace Talk” strategies with Taliban were formulated , with no intension of bi-lateral talks

The fragile government had limited control outside of Kabul. The Taliban could sustain itself indefinitely

Continuous insurgency by Taliban guerrillas caused huge damage to the NA and US led army

Immediate Implications

Strategies Disadvantage

Massive violation of human rights by military operation on civilian areas; cluster bombing, daisy cutters

Cutting of supply lines complaining Taliban's are hiding among civilians which caused hundreds of civilian deaths and mass killing on the basis of suspect.

Mounting Global political pressure and strong world wide criticism

Building of strong global anti war common opinion and loss of people’s trust (finally led to landslide defeat for both the US and UK governments in respective general elections)

Immediate Implications

Strategies Disadvantages

Public declaration of finishing “Jihad” and mixing war against terrorism to war against Islam.

Open statements against Islam and keeping cold relations with Islamic countries.

Not taking proper action against cases human rights violation against Muslims in US /UK .

Humiliating laws and security protocols based on race. Restrictions on particular ethnic groups based on common biased perception.

It became easier for terrorist groups to site examples to justify “Jihad”

The root of inherent hatred were strengthened between Islamic countries and the western countries. Lack of trust led to reluctance in open communication

Expanded terrorist activity worldwide, with sophisticated plans and designs with the increased funding from Islamic fundamentalists and Islamic countries.

Long term implications

Conclusion

Strategic planning, selection from strategic alternatives and implementation strategy can put any company into major disadvantages which eventually leads to lose of business interest and takes long time to repair.

to minimize strategic disadvantages a strategy maker should have a clear long term vision, no vested interest and an approach of balancing business interests with the impacts of external and internal factors for common welfare.

REFERENCE:S T R AT E G I C M A N A G E M E N T W I T H C A S E S B Y T H O M P S O N

H TT P : / / W W W. B I Z E D. C O. U KH TT P : / / W W W. S C H O L E R S . C O M /

WA R _ I N _ A F G H A N I S TA N _ ( 2 0 0 1 – P R E S E N T )

Thank you