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Small medium enterprise_ferry_jaolis

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SME's Competitive Strategy

SME's Competitive Strategy

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    Small medium enterprise_ferry_jaolis Small medium enterprise_ferry_jaolis Presentation Transcript

    • ARTICLE REVIEW “Proposition d’une grille de classification pour l’identification de la logique stratégique des petites et moyennes entreprises”Gerald d’Amboise SUMMARY PRESENTATION BY FERRY JAOLIS Faculte des sciences de l’administrationChristiane Fortin Universite Laval, CA
    • PRESENTATION PLAN  Issue  Key Ideas, Method, Data  Review  Critics  Suggestions  References
    •  Decision-making autonomy, < $20 M annual sales, < 500 employees, Not dominant in their sector.
    • Studies on Large Firms Studies on SMEs • Robinson and Pearce (1988)• Bourgeois (1980) • Bamberger (1988)• Hambrick (1980) GENERAL SPECIFIC • Davig (1986) • Chaganti, Chaganti• Chrisman, Hofer and and Mahajan (1989) Boulton (1988) • Miller (1988) • Etc.1980 1989 Competitive Strategy 4 Strategy 3 NEW GRID 2 Base Models 1
    • Corporate Strategy GENERAL• Bourgeois (1980) INTERNAL Business Strategy TASK/IMMEDIATE Competitive Strategy 4 Strategy 3 2 1
    • STUDIES ON STRATEGIC BEHAVIOR OF SMEs  Robinson and Pearce (1988) -- > 22 types of competitive factors.  Bamberger (1988) -- > 26 competitive factors.  Davig (1986) studied the competitive strategies of 60 enterprises.  Chaganti, Chaganti and Mahajan (1989) -- > 11 elements to measure the competitive strategies of 192 small manufacturing enterprises  Miller (1988) employed 20 factors to study the strategic dimension of 89 enterprises.TYPOLOGIES Growing interest / studies with no ‘representative’ model 1980 1990 Competitive Strategy 4 3 2 1
    • PROBLEMS ON SMEs STUDIES TYPOLOGY • Growing typologies • Non-integrative study METHOD results • Cluster analysis • Unique terms in every • Factorial analysis studies • Specific to industries, product type, markets, etc. Competitive Strategy 4 3 2 1
    • 4 3 2 Base Models1
    •  Industry-wide -- regardless of sizes, market share, etc. Exhaustive (a non ‘stuck-in-the-middle’ concept) 4 3 2 Base Models 1
    • 4 3 NEW GRID 21
    • large Portergeneric specific Porter Miles & Snow SMEs small to medium
    • CRITICS• Rely too strongly on generic strategy (should it be generic from generic or generic from specific (SMEs in particular)?• Place lower emphasis on competitive factors studies of SMEs.• Lack of sound reason when choosing base model• Merely an ‘another’ expansion of Porter’s model, no new ‘representative’ term for SMEs strategySuggestions…• Pay more attention to factors influencing strategic orientation of SMEs (which were written in the article already – price, product, delivery times, etc.)• The ideas of factor analysis is good enough to classify these SMEs strategy (the author should put more emphasis on this)• Start with defining more on the term ‘competitor’
    • large Competitive Strategies Size of Competition Cost Leadership Differentiation Hybrid Market Leader Equal Nichergeneric specific SME’s Strategic Competitive Strategies Target Cost Leadership Differentiation Hybrid Segment ignored by market leader Segment served by market leader Segment served by equal SMEs SMEs Segment served by smaller nichers small to medium
    • REFERENCES • http://www.scribd.com/doc/20597525/Chapter-3-Three-Generic- Competitive-Strategies-For-SMEs, “Generic competitive strategy for SMEs”, January 24th, 2011. • http://www.ashridge.org.uk/website/content.nsf/FileLibrary/1E056A2490064 92B8025742E00360549/$file/360_Spring08.pdf, “Generic strategies: a substitute for thinking?”, January 24th, 2012. • http://www.sbaer.uca.edu/research/asbe/1998/pdf/06.pdf, "Stuck in the middle: for retailers, perhaps not such a bad place to be”, January 24th, 2012. • http://www.quickmba.com/strategy/generic.shtml, “Porter’s generic strategy”, January 24th, 2012. • http://www.google.com/url?sa=t&rct=j&q=miles%20and%20snow%20strateg y&source=web&cd=4&sqi=2&ved=0CDsQFjAD&url=http%3A%2F%2Fciteseer x.ist.psu.edu%2Fviewdoc%2Fdownload%3Fdoi%3D10.1.1.125.803%26rep%3 Drep1%26type%3Dpdf&ei=bRkgT7z2FMPoOY7QnYEM&usg=AFQjCNH7uYLQ Ht_C9Zm9PTl9eF4hHmbrEw&sig2=59n9A849RJd5IWuSF3oZ8w, “Miles and Snow’s strategy model in the context of small firms”, Fernando A. P. Gimenez, January 24th, 2012.
    • THE SMEs Decision-making autonomy, < $20 M annual sales, < 500 employees, Not dominant in their sector.
    • RESEARCH FRAMEWORKStep 1 Step 2 Step 3 Step 4Strategy Competitive Base Models New Grid Strategy• Corporate • Disctinctive • Miles & Snow • Strategic Logic Strategy Competence • Porter of SMEs• Business • Competitive Strategy Advantage 4 3 2 1