AN ILLUSTRATION OF SUCCESSFUL ‘GENERIC’ COST LEADERSHIP AND DIFFERENTIATION INDUSTRY COMPETITORS $15 $12 $3
AN ILLUSTRATION OF SUCCESSFUL ‘GENERIC’ COST LEADERSHIP AND DIFFERENTIATION INDUSTRY COMPETITORS SUCCESSFUL COST LEADER $15 $12 $3 $6 $8 $14
AN ILLUSTRATION OF SUCCESSFUL ‘GENERIC’ COST LEADERSHIP AND DIFFERENTIATION INDUSTRY COMPETITORS SUCCESSFUL COST LEADER SUCCESSFUL DIFFERENTIATOR $15 $12 $3 $6 $6 $8 $13 $14 $19
‘ Customizing’ Business Level Strategies How do we differentiate? How do we price? How do we segment? What is our uniqueness? What are our distinctive competencies? -Efficiency -Innovation -Responsivenss -Quality What value do we provide? What are our customers needs? Who are our customers? How will we satisfy them? Business Definition Value Business Level Strategies What is our cost structure? How do we position ourselves in relation to rivals?
Define each strategy and provide an example Life Cycle Stage Strong Comp. Position Weak Comp. Position Embryonic Share building Share Building Growth Growth Market Concentration Shakeout Share Increasing Market Concentration or harvest/liquidation Maturity Hold and Maintain and Harvest or profit liquidation/divestiture Decline Market concentration or Turnaround, liquidation, harvest (asset reduction) or divestiture
Question for Discussion
What is game theory and how is it relevant to business level strategies?
In-class analysis Work with one or two people in your presentation team
On a clean sheet of paper (to turn in). Outline two business level strategies your company has adopted. Identify the generic strategies, market segmentation, and distinctive competencies.
With your team member(s), compare/contrast business level strategies and the three components (product/market/distinctive competences) that make up the strategy. Identify key differences and key similarities.
Wednesday: Third set of presentations
Read Articles: 1. The Good Earth
2. Dr. Ballard Thinks Big
Due: A one page, word processed paper summarizing the two key issues in each article and a sentence or two discussing how each article relates to disruption and/or any topic we’ve discussed in class to date.
Midterm: Next Weds March 10 - Sample Questions and info are up on the course homepage