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Business Strategy Ch 6
- 2. Identifying strategic business units Issues with S.B.Us • A confusion of S.B.Us • Corporate complexity • Organizational structure Criteria to identify S.B.Us • Market-based criteria • Capabilities-based criteria
- 4. Sustaining Competitive Advantage Price-Based -Accept Reduced Margin -Win a Price War -Reduce Cost -Focus on Specific Segments Lock-In -Achieve Market Dominance -First Mover Advantage -Reinforcement -Rigorous Enforcement Differentiation -Create Difficulties of Imitation -Achieve imperfect mobility -Reinvest Margin Sustaining Competitive Advantage
- 5. Competition and collaboration Collaboration between organization is advantageous to avoid competition or to get full benefit. Example:- collaboration between manufacturer and logistic company can help them to achieve cost benefit. By collaboration we can achieve competitive advantages in terms of operation, sales, cost, profit etc. which is shown in fig. [a].
- 7. Game theory It is concerned with the interrelationships between the competitive moves of a set of competitors. Key Assumptions to understanding competitive dynamics Rationality Interdependence Get in the mind of the competitions Think forwards and reason back words.