options and variations are standardized. Mergers or acquisitions and many failures among competing firms occur because of over capacity. In the termination phase, product availability is reduced sharply and the product may even be eliminated altogether.
ii. Generic Strategic Model according to J ackson (1990:244) , comprises a framework of three basic strategies.
a. Differentiation strategies e mphasize competiting with all other firms in the industry by offering a product that customers perceive to be unique. The long term effectiveness of the differentiation strategy dep ends on how easily competitors can imitate the unique benefits provided by the firm . Approaches of differentiation strategies are innovative product des ign, high quality and unique br and image etc.
b. The second strategy of the generic strategic model acc ording to J ackson (1990:245) , is the cost leadership strategies which emphasize competing in the industry by providing a product at a price as low as or lower than the competitors’. Several essential actions are associated with type of strategy. These incl ude; utilizing facilities or equipm ent that yield high economies of scale, constantly striving to reduce per unit overhead and minimizing labour intensive personal services etc. High productivity or rapid growth is needed for profitability with cost leadership strategy.
c. The third strategy of the generic strategic model according to J ackson emphasizes competing in a specific industry niche by serving the unique needs of certain customers or a specific geographic market. A niche is a specialized group of customers
e.g. teenagers or narrowly defined market segment that competitor may overlook, ignore or have difficult serving e.g. (a specific geographic area). Strategic actions associated with this type of strategy are adaptation of those associated with differentiation and cost leadership strategies but are applied to a specific market niche.
2.6 STRATEGIC PLANNING PROCESS
A simplified view of the strategic planning process according to QuickMBA (2009) in (www.google.com) is
The Startegic Processes


1. Mission and Objective:
The mission statement describes the company’s vision, including the unchanging values and the purpose of the firm and forward-look visionary goals that guide the pursu it of the future opportunities. Hellriege l (1990:232) states that organizational mission and goals are developed by answering questions such as: what business are we in? What are we committed to? and what results do we want to achieve?
2. Environmental S can
Environmental Scan includes the analysis of both the internal and external environment s. Onwuchekwa (2000:74) states that the environment in which an organization exists can therefore be described in terms of the strength s and weaknesses existing in the internal environment and the opportunities and threats operating in the external environment. Hellriegel (1990:235) defines internal environment as all factors within the organization that impacts strengths or cause weaknesses of a strategic nature. The external environment includes all the factors outside the organization which provide opportunities or pose threats to the organization.
Kazmi (2008:71) states that organization performs a SWOT analysis to under stand their internal and external environmen ts. SWOT, is the acronym for strengths, weaknesses, opportunities and threats.
Strength is an inherent capacity which an organization can use to gain strategic advantage e.g. resources, people and experience. Weakness is an inherent limitation which creat es disadvantages e.g. financial deadline and over dependence etc.