The document discusses the five generic competitive strategies: low-cost provider, differentiation, best-cost provider, and focused or niche strategies. It provides an overview of each strategy, including their objectives, keys to success, examples, and risks. Specifically, it outlines that the five strategies are low-cost provider, differentiation, best-cost provider, and two focused strategies. It also notes that each strategy positions a company differently and has tradeoffs to consider when deciding which one to pursue.
Kotler08exs dealing with the competitionSaqib Manzoor
This document summarizes a PowerPoint presentation about dealing with competition. It discusses identifying competitors and their strategies, designing competitive intelligence systems, deciding on a competitive positioning strategy as either a market leader, challenger, follower or nicher, and balancing a customer versus competitor orientation. The presentation covers Porter's five forces model of competition, different industry structures, methods for competitor analysis, strategies for defending or expanding market share, and general and specific competitive strategies.
The document outlines key topics from Chapter 4 of a strategic management textbook, including:
- The internal audit process examines functional business areas to understand strengths and weaknesses
- Culture and strategy must be integrated, as culture can inhibit strategic changes if not aligned
- Resource-based view argues that internal resources are more important than external factors for competitive advantage
- Financial ratios and other metrics are used to evaluate performance across marketing, production, R&D, and other functions
This chapter discusses various types of strategies companies use including intensive strategies like market penetration and product development, integration strategies like forward and backward integration, diversification strategies, defensive strategies, and Michael Porter's generic strategies. It also covers means for achieving strategies such as joint ventures, mergers and acquisitions, outsourcing, and first mover advantages. Key terms discussed include different types of integration, diversification, Porter's strategies, and strategic management concepts.
Hyundai is launching the new Genesis model to target the premium car market and move away from its past strategy of focusing on low cost. To gain a competitive advantage, firms can pursue either a low cost strategy, differentiation strategy, or focused strategy. Michael Porter's model outlines how firms can analyze their value chain activities to lower relative costs or create unique differentiation to deliver extra value for customers.
Competitive strategies aim to attract customers, withstand competition, and strengthen market position by exploiting competitive advantages. There are three generic competitive strategies: cost leadership, differentiation, and focus. Cost leadership involves having the lowest costs in the industry while differentiation involves offering unique products/services. Focus strategy pursues either approach but in a narrow customer segment. Functional strategies play a key role in determining and implementing the overall competitive strategy.
The document discusses analyzing an organization's strategic position through examining the external environment. It covers using PESTEL analysis to understand the macroenvironment and five forces analysis to evaluate the attractiveness of industries. The five forces include potential new entrants, competitive rivalry, substitutes, buyers and suppliers. Identifying strategic groups within industries and market segments can reveal opportunities for organizations.
Essentials of strategy formulation in international businessSalman Ahmed
The workshop agenda covers various topics related to international business expansion including market entry modes, internationalization processes, and theoretical frameworks. It discusses basic decisions around entering foreign markets such as which markets, when to enter, and the scale of entry. Various entry modes like exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries are examined in terms of their advantages and disadvantages. The document also explores frameworks for international market entry and managing risk and control in multinational enterprises.
Kotler08exs dealing with the competitionSaqib Manzoor
This document summarizes a PowerPoint presentation about dealing with competition. It discusses identifying competitors and their strategies, designing competitive intelligence systems, deciding on a competitive positioning strategy as either a market leader, challenger, follower or nicher, and balancing a customer versus competitor orientation. The presentation covers Porter's five forces model of competition, different industry structures, methods for competitor analysis, strategies for defending or expanding market share, and general and specific competitive strategies.
The document outlines key topics from Chapter 4 of a strategic management textbook, including:
- The internal audit process examines functional business areas to understand strengths and weaknesses
- Culture and strategy must be integrated, as culture can inhibit strategic changes if not aligned
- Resource-based view argues that internal resources are more important than external factors for competitive advantage
- Financial ratios and other metrics are used to evaluate performance across marketing, production, R&D, and other functions
This chapter discusses various types of strategies companies use including intensive strategies like market penetration and product development, integration strategies like forward and backward integration, diversification strategies, defensive strategies, and Michael Porter's generic strategies. It also covers means for achieving strategies such as joint ventures, mergers and acquisitions, outsourcing, and first mover advantages. Key terms discussed include different types of integration, diversification, Porter's strategies, and strategic management concepts.
Hyundai is launching the new Genesis model to target the premium car market and move away from its past strategy of focusing on low cost. To gain a competitive advantage, firms can pursue either a low cost strategy, differentiation strategy, or focused strategy. Michael Porter's model outlines how firms can analyze their value chain activities to lower relative costs or create unique differentiation to deliver extra value for customers.
Competitive strategies aim to attract customers, withstand competition, and strengthen market position by exploiting competitive advantages. There are three generic competitive strategies: cost leadership, differentiation, and focus. Cost leadership involves having the lowest costs in the industry while differentiation involves offering unique products/services. Focus strategy pursues either approach but in a narrow customer segment. Functional strategies play a key role in determining and implementing the overall competitive strategy.
The document discusses analyzing an organization's strategic position through examining the external environment. It covers using PESTEL analysis to understand the macroenvironment and five forces analysis to evaluate the attractiveness of industries. The five forces include potential new entrants, competitive rivalry, substitutes, buyers and suppliers. Identifying strategic groups within industries and market segments can reveal opportunities for organizations.
Essentials of strategy formulation in international businessSalman Ahmed
The workshop agenda covers various topics related to international business expansion including market entry modes, internationalization processes, and theoretical frameworks. It discusses basic decisions around entering foreign markets such as which markets, when to enter, and the scale of entry. Various entry modes like exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries are examined in terms of their advantages and disadvantages. The document also explores frameworks for international market entry and managing risk and control in multinational enterprises.
Competitive advantage comes from low costs or differentiation. Companies pursue cost leadership, differentiation, or focus strategies depending on their scope and basis of advantage. Cost leadership aims to have the lowest costs industry-wide while differentiation makes products unique. Focus involves serving a niche market better than competitors through low costs or differentiation. Sustaining advantage requires continuous improvement, learning, and overcoming inertia to adapt strategies.
This document discusses the differences between operational effectiveness and strategy. Operational effectiveness means performing similar activities better than rivals, like reducing product defects. Strategy means performing different activities or activities differently to establish a unique position. It also discusses how strategic positioning comes from variety, need, or access-based differences. Finally, it emphasizes that strategy requires trade-offs to make unique choices and be sustainable, and that fit among a company's activities is important for competitive advantage.
This document discusses business-level strategy, defining it as an integrated set of actions a firm uses to gain a competitive advantage in a specific industry. It outlines the five main business-level strategies - cost leadership, differentiation, focused cost leadership, focused differentiation, and integrated cost leadership/differentiation - and discusses the competitive advantages, scope, value chain activities, risks, and relationship to Porter's Five Forces for each strategy. Choosing and implementing the right business-level strategy is important for a firm's success and depends on its internal resources and capabilities as well as external market conditions.
This document provides an overview of business-level strategy. It defines business-level strategy as an integrated set of commitments and actions a firm uses to gain a competitive advantage in specific product markets. The chapter discusses the relationship between customers and business-level strategies in terms of who the firm serves, what needs it satisfies, and how it satisfies those needs. It explains the differences between cost leadership, differentiation, and focused cost leadership/differentiation strategies. The risks and benefits of each strategy are also described.
06 International Trade and Factor MobilityBrent Weeks
To understand theories of international trade
To explain how free trade improves global efficiency
To identify factors affecting national trade patterns
To explain why a country’s export capabilities are dynamic
To understand why production factors, especially labor and capital, move internationally
To explain the relationship between foreign trade and international factor mobility
The document discusses different economic systems and stages of economic development around the world. It outlines four main economic systems - market capitalism, centrally planned socialism, centrally planned capitalism, and market socialism. It then analyzes degrees of economic freedom, stages of market development, emerging markets, income levels of countries, and leading trade organizations and country groupings. Key trade blocs and organizations mentioned include the G7, OECD, European Union, and definitions for high, upper-middle, lower-middle, and low income countries based on GNP per capita.
This chapter discusses strategy evaluation, review, and control. It explains that strategy evaluation involves examining strategy foundations, comparing expected and actual results, and taking corrective actions. It also discusses challenges in strategy evaluation, frameworks for evaluating strategies, measuring performance, and the importance of contingency planning and auditing in the evaluation process.
The document discusses Michael Porter's generic strategies for achieving competitive advantage. Porter developed three generic strategies in the 1980s - cost leadership, differentiation, and focus. Cost leadership involves having the lowest costs to appeal to cost-conscious customers on a broad scale. Differentiation creates unique product attributes that allow premium pricing. Focus targets a narrow market segment, aiming for cost advantage or differentiation. Firms must choose one generic strategy to avoid being stuck between approaches.
The document discusses Michael Porter's concepts of competitive advantage and value chain analysis. It explains that firms can achieve competitive advantage through cost leadership or differentiation. Value chain analysis involves identifying activities that contribute to these strategies and analyzing the sources of competitive advantage. Primary and support activities are discussed along with cost drivers and how to control costs to achieve a cost advantage. Differentiation strategies are also covered, including identifying sources of differentiation and determining how to create buyer value through differentiation.
There are two types of research namely exploratory and conclusive research. Similarly, primary data collection can be done by two methods namely observation method and survey method. A good research firm is the one that has expertise,knowledge,objectivity, familiarity and cost-effectiveness as its core attributes.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc
Michael Porter identified three generic competitive strategies for achieving competitive advantage: cost leadership, differentiation, and focus. Cost leadership involves having the lowest costs in the industry. Differentiation creates a product or service that is perceived as unique. Focus involves targeting a narrow market segment and achieving either cost leadership or differentiation within that segment.
The document discusses Porter's five forces model of competition. It explains the five competitive forces as threats of new entrants, power of suppliers and buyers, threat of substitute products, and rivalry among existing competitors. It provides details on how to assess the competitive intensity of each force. The five forces framework helps analyze an industry's structure to determine its attractiveness and develop competitive strategies. It is useful for competitive analysis but has limitations when environments change rapidly.
Operational Effectiveness Is Not Strategy
Operational Efficiency
Competitive Strategy
Strategy Rests on Unique Activities
Origin of Strategic Position (3 Sources)
Variety /Need /Access-Based Positioning
A Sustainable Strategic Position Requires Trade-offs
Fit Drives Both Competitive Advantage and Sustainability
Rediscovering Strategy
External Challenges to Strategy
Traps for Shaping Strategy
The document summarizes Michael Porter's framework for competitive strategy. It outlines the five competitive forces that determine the intensity of industry competition: threat of new entry, power of suppliers, power of buyers, threat of substitutes, and rivalry among existing competitors. It then discusses how firms can gain a competitive advantage by positioning themselves in the industry where these forces are weakest or by influencing the competitive balance through strategic changes. The document also covers Porter's generic strategies of cost leadership, differentiation, and focus.
CCC uses a mechanistic structure that is highly formalized and centralized. It is organized into
functional departments with strict rules and procedures. While this structure allows for efficient mass
production, it also leads to inflexibility and lack of innovation. As the environment changes and tasks
become more complex, CCC's structure may inhibit its ability to adapt. To remain effective, CCC will
need to introduce more organic elements, such as cross-functional teams, to balance efficiency with
flexibility.
Business level strategies - strategic management - Manu Melwin Joymanumelwin
Business-level strategy addresses the question of how a firm will compete in a particular industry.
It is a general way of positioning a firm within an industry.
This document provides an overview and roadmap of key concepts for competing in foreign markets. It discusses why companies expand internationally, differences between countries that companies must consider, and different strategies for entering foreign markets such as exporting, licensing, franchising, multi-country strategies, and global strategies. The document also covers how to gain competitive advantages in foreign markets through efficiently locating production facilities and transferring capabilities between countries.
This document summarizes a business plan to market an optical distortion device as a cost-effective alternative to debeaking chickens. It discusses positioning the product as reducing bird mortality, trauma, and feed costs. It outlines targeting medium and large farms in high chicken density regions. Pricing is set at $0.18 per pair to maximize profits through an even split with farmers of $0.28 in total savings per hen from reducing mortality, trauma, and feed costs. The 5-year plan projects revenues, expenses, and pre-tax income as distribution expands through regional sales offices to achieve 50% market penetration across the continental US.
Business level strategies help firms position themselves relative to competitors by choosing whether to perform different activities or pursue lower costs or uniqueness. There are five main business level strategies: cost leadership, differentiation, focused low cost, focused differentiation, and integrated strategies. Cost leadership aims for standard products at lowest prices while differentiation focuses on unique product features. Focused strategies target a narrow market segment with either lower costs or differentiation. An integrated strategy combines elements of cost leadership and differentiation.
Foreign exchange markets are affected by economic, political, and psychological factors that influence supply and demand. Economic factors include fiscal and monetary policy, economic growth reports, inflation levels, and trade balances. Political conditions and events within and between countries also impact currency values. Market psychology reflects trends, reactions to events, and traders' interpretations of economic data. Various financial instruments like spots, forwards, futures, swaps, and options offer different methods for currency speculation and hedging. Views on the role of speculation in currency markets are mixed, with some arguing it provides liquidity while others see it as destabilizing.
This chapter discusses various strategy options that companies can pursue beyond competitive strategy, including strategic alliances, mergers and acquisitions, vertical integration, outsourcing, and offensive and defensive strategies. It provides an overview of when each option makes strategic sense, potential benefits and pitfalls, and examples of each type of strategy. The key strategy options covered are strategic alliances and partnerships to complement capabilities, mergers and acquisitions to gain capabilities, vertical integration to extend competitive scope, and outsourcing non-core activities. Offensive strategies aim to build market position while defensive strategies protect existing advantages.
Competitive advantage comes from low costs or differentiation. Companies pursue cost leadership, differentiation, or focus strategies depending on their scope and basis of advantage. Cost leadership aims to have the lowest costs industry-wide while differentiation makes products unique. Focus involves serving a niche market better than competitors through low costs or differentiation. Sustaining advantage requires continuous improvement, learning, and overcoming inertia to adapt strategies.
This document discusses the differences between operational effectiveness and strategy. Operational effectiveness means performing similar activities better than rivals, like reducing product defects. Strategy means performing different activities or activities differently to establish a unique position. It also discusses how strategic positioning comes from variety, need, or access-based differences. Finally, it emphasizes that strategy requires trade-offs to make unique choices and be sustainable, and that fit among a company's activities is important for competitive advantage.
This document discusses business-level strategy, defining it as an integrated set of actions a firm uses to gain a competitive advantage in a specific industry. It outlines the five main business-level strategies - cost leadership, differentiation, focused cost leadership, focused differentiation, and integrated cost leadership/differentiation - and discusses the competitive advantages, scope, value chain activities, risks, and relationship to Porter's Five Forces for each strategy. Choosing and implementing the right business-level strategy is important for a firm's success and depends on its internal resources and capabilities as well as external market conditions.
This document provides an overview of business-level strategy. It defines business-level strategy as an integrated set of commitments and actions a firm uses to gain a competitive advantage in specific product markets. The chapter discusses the relationship between customers and business-level strategies in terms of who the firm serves, what needs it satisfies, and how it satisfies those needs. It explains the differences between cost leadership, differentiation, and focused cost leadership/differentiation strategies. The risks and benefits of each strategy are also described.
06 International Trade and Factor MobilityBrent Weeks
To understand theories of international trade
To explain how free trade improves global efficiency
To identify factors affecting national trade patterns
To explain why a country’s export capabilities are dynamic
To understand why production factors, especially labor and capital, move internationally
To explain the relationship between foreign trade and international factor mobility
The document discusses different economic systems and stages of economic development around the world. It outlines four main economic systems - market capitalism, centrally planned socialism, centrally planned capitalism, and market socialism. It then analyzes degrees of economic freedom, stages of market development, emerging markets, income levels of countries, and leading trade organizations and country groupings. Key trade blocs and organizations mentioned include the G7, OECD, European Union, and definitions for high, upper-middle, lower-middle, and low income countries based on GNP per capita.
This chapter discusses strategy evaluation, review, and control. It explains that strategy evaluation involves examining strategy foundations, comparing expected and actual results, and taking corrective actions. It also discusses challenges in strategy evaluation, frameworks for evaluating strategies, measuring performance, and the importance of contingency planning and auditing in the evaluation process.
The document discusses Michael Porter's generic strategies for achieving competitive advantage. Porter developed three generic strategies in the 1980s - cost leadership, differentiation, and focus. Cost leadership involves having the lowest costs to appeal to cost-conscious customers on a broad scale. Differentiation creates unique product attributes that allow premium pricing. Focus targets a narrow market segment, aiming for cost advantage or differentiation. Firms must choose one generic strategy to avoid being stuck between approaches.
The document discusses Michael Porter's concepts of competitive advantage and value chain analysis. It explains that firms can achieve competitive advantage through cost leadership or differentiation. Value chain analysis involves identifying activities that contribute to these strategies and analyzing the sources of competitive advantage. Primary and support activities are discussed along with cost drivers and how to control costs to achieve a cost advantage. Differentiation strategies are also covered, including identifying sources of differentiation and determining how to create buyer value through differentiation.
There are two types of research namely exploratory and conclusive research. Similarly, primary data collection can be done by two methods namely observation method and survey method. A good research firm is the one that has expertise,knowledge,objectivity, familiarity and cost-effectiveness as its core attributes.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc
Michael Porter identified three generic competitive strategies for achieving competitive advantage: cost leadership, differentiation, and focus. Cost leadership involves having the lowest costs in the industry. Differentiation creates a product or service that is perceived as unique. Focus involves targeting a narrow market segment and achieving either cost leadership or differentiation within that segment.
The document discusses Porter's five forces model of competition. It explains the five competitive forces as threats of new entrants, power of suppliers and buyers, threat of substitute products, and rivalry among existing competitors. It provides details on how to assess the competitive intensity of each force. The five forces framework helps analyze an industry's structure to determine its attractiveness and develop competitive strategies. It is useful for competitive analysis but has limitations when environments change rapidly.
Operational Effectiveness Is Not Strategy
Operational Efficiency
Competitive Strategy
Strategy Rests on Unique Activities
Origin of Strategic Position (3 Sources)
Variety /Need /Access-Based Positioning
A Sustainable Strategic Position Requires Trade-offs
Fit Drives Both Competitive Advantage and Sustainability
Rediscovering Strategy
External Challenges to Strategy
Traps for Shaping Strategy
The document summarizes Michael Porter's framework for competitive strategy. It outlines the five competitive forces that determine the intensity of industry competition: threat of new entry, power of suppliers, power of buyers, threat of substitutes, and rivalry among existing competitors. It then discusses how firms can gain a competitive advantage by positioning themselves in the industry where these forces are weakest or by influencing the competitive balance through strategic changes. The document also covers Porter's generic strategies of cost leadership, differentiation, and focus.
CCC uses a mechanistic structure that is highly formalized and centralized. It is organized into
functional departments with strict rules and procedures. While this structure allows for efficient mass
production, it also leads to inflexibility and lack of innovation. As the environment changes and tasks
become more complex, CCC's structure may inhibit its ability to adapt. To remain effective, CCC will
need to introduce more organic elements, such as cross-functional teams, to balance efficiency with
flexibility.
Business level strategies - strategic management - Manu Melwin Joymanumelwin
Business-level strategy addresses the question of how a firm will compete in a particular industry.
It is a general way of positioning a firm within an industry.
This document provides an overview and roadmap of key concepts for competing in foreign markets. It discusses why companies expand internationally, differences between countries that companies must consider, and different strategies for entering foreign markets such as exporting, licensing, franchising, multi-country strategies, and global strategies. The document also covers how to gain competitive advantages in foreign markets through efficiently locating production facilities and transferring capabilities between countries.
This document summarizes a business plan to market an optical distortion device as a cost-effective alternative to debeaking chickens. It discusses positioning the product as reducing bird mortality, trauma, and feed costs. It outlines targeting medium and large farms in high chicken density regions. Pricing is set at $0.18 per pair to maximize profits through an even split with farmers of $0.28 in total savings per hen from reducing mortality, trauma, and feed costs. The 5-year plan projects revenues, expenses, and pre-tax income as distribution expands through regional sales offices to achieve 50% market penetration across the continental US.
Business level strategies help firms position themselves relative to competitors by choosing whether to perform different activities or pursue lower costs or uniqueness. There are five main business level strategies: cost leadership, differentiation, focused low cost, focused differentiation, and integrated strategies. Cost leadership aims for standard products at lowest prices while differentiation focuses on unique product features. Focused strategies target a narrow market segment with either lower costs or differentiation. An integrated strategy combines elements of cost leadership and differentiation.
Foreign exchange markets are affected by economic, political, and psychological factors that influence supply and demand. Economic factors include fiscal and monetary policy, economic growth reports, inflation levels, and trade balances. Political conditions and events within and between countries also impact currency values. Market psychology reflects trends, reactions to events, and traders' interpretations of economic data. Various financial instruments like spots, forwards, futures, swaps, and options offer different methods for currency speculation and hedging. Views on the role of speculation in currency markets are mixed, with some arguing it provides liquidity while others see it as destabilizing.
This chapter discusses various strategy options that companies can pursue beyond competitive strategy, including strategic alliances, mergers and acquisitions, vertical integration, outsourcing, and offensive and defensive strategies. It provides an overview of when each option makes strategic sense, potential benefits and pitfalls, and examples of each type of strategy. The key strategy options covered are strategic alliances and partnerships to complement capabilities, mergers and acquisitions to gain capabilities, vertical integration to extend competitive scope, and outsourcing non-core activities. Offensive strategies aim to build market position while defensive strategies protect existing advantages.
The document discusses the World Trade Organization (WTO) and trade agreements. It provides historical background on trade agreements and an overview of the WTO. The basic principles of the WTO are trade without discrimination, predictable and growing access to markets, undistorted fair competition, and transparency. Preferential trade agreements and multilateral agreements are also discussed. In summarizing two economic evaluations, there is no strong evidence that WTO membership directly leads to more liberal trade policies.
The document discusses various aspects of manufacturing plant design including plant layouts, scheduling, and inventory management. It provides details on different types of plant layouts such as functional, product, and cellular layouts. It also covers topics like single machine scheduling, parallel machine scheduling, critical path analysis, economic order quantity, and master production scheduling. Plant location selection and material requirement planning are analyzed through examples and formulas. The document is an in-depth reference on manufacturing design and production planning concepts.
Chap011 budiling resource strength and capabiltiesAjit Kumar
This document provides an overview of chapter 11 from a management textbook, which discusses building organizational capabilities to execute strategy. The chapter introduces frameworks for strategy execution, components of building a capable organization like staffing and developing core competencies. It emphasizes that executing strategy is tougher than crafting it and requires strong leadership to implement changes, unite the organization, and ensure activities support the strategy. Building an effective management team, attracting and retaining talented employees, and developing strategic competencies are key aspects of building an organization capable of executing its strategy well.
Global recession and new business environmentAjit Kumar
This document discusses the global financial system and international monetary system. It covers several topics:
1) The main players in the global financial system, including private banks and public central banks and international organizations like the IMF.
2) How the international monetary system determines exchange rates between currencies and provides liquidity. It requires cooperation between leading nations and organizations.
3) The evolution of the post-Bretton Woods system to floating exchange rates and the role of the IMF in regulating the system.
Regionalism refers to preferential trade agreements that violate the nondiscrimination principle of the WTO by discriminating in favor of other member countries. There are several types of regional trade agreements including free trade areas where members eliminate barriers between each other but maintain independent policies for non-members, and customs unions where members adopt common trade policies and external tariffs for non-members. Regional trade agreements can result in both trade creation when imports switch to more efficient low-cost partners, and trade diversion when imports switch from lower-cost non-members to higher-cost partners.
1) The chapter discusses how companies can marshal resources, establish policies and procedures, adopt best practices, install information systems, and design reward systems to support effective strategy execution.
2) Key aspects include allocating resources to strategic initiatives, establishing empowering policies that channel behaviors towards the strategy, adopting benchmarked best practices for continuous improvement, and installing information systems to mobilize operational data.
3) An effective reward system ties incentives like pay and recognition directly to good strategy execution in order to gain employee commitment.
Chap009 managing diversifcation and groupAjit Kumar
This document discusses strategies for diversifying a company into related and unrelated businesses. It defines related diversification as diversifying into businesses with value chains that have strategic fits with the company's existing businesses. This allows the company to leverage expertise, technologies, distribution networks, and other resources across the businesses. Related diversification can result in lower costs and stronger competitive capabilities compared to competitors. The document outlines various types of strategic fits that can exist across value chains, such as R&D, supply chain, manufacturing, distribution, sales and marketing, and managerial fits. Capturing these strategic fits is said to create a "1+1=3" effect where the performance of the combined businesses is greater than if they operated independently.
Multinational and participation strategies 1Ajit Kumar
This document discusses strategies that firms can use when operating internationally to balance global integration with local responsiveness. It introduces the value chain concept and describes pressures for both integration and localization. Different strategies are outlined, including multidomestic, transnational, international, and regional strategies. The transnational strategy seeks both location advantages and global efficiencies. Firms must consider factors like markets, costs, governments, and competition to determine which strategy best resolves the global-local dilemma in their industry. The competitive advantages in a firm's value chain also influence their choice of strategy.
This document provides an overview of analyzing a company's external environment from a strategic perspective. It discusses the key components of situational analysis including the macroenvironment and microenvironment. It outlines seven questions to consider when analyzing an industry's competitive environment, including the dominant economic traits, competitive forces, drivers of change, success factors, and attractiveness. Several models are presented for assessing the five competitive forces of rivalry, potential entry, substitutes, supplier power, and buyer power. Factors that influence the strength of each competitive force are also discussed.
This document provides an overview of key concepts for competing in foreign markets. It discusses why companies expand internationally, differences between cultural and market conditions across countries, and strategies for entering foreign markets such as exporting, licensing, franchising, multi-country strategies, and global strategies. The document also covers how to gain competitive advantages in foreign markets through locating activities efficiently, transferring competencies across borders, and coordinating dispersed activities globally.
Chap008 fitting strategy to company and industryAjit Kumar
This document discusses strategies for competing in different industry situations. It begins by outlining the chapter contents, which include strategies for emerging, turbulent, maturing, stagnant or declining industries.
The document then discusses various industry situations and competitive conditions in detail. For each situation, it provides examples of defining characteristics and features, and lists strategic options companies can pursue to compete effectively. These include strategies for industry leaders to sustain their position, runner-up firms to overcome obstacles, and weak businesses undergoing turnarounds.
Overall, the document provides an in-depth analysis of how companies can tailor their strategies based on their own capabilities and market position, as well as the nature of the industry and competitive conditions they face.
This document discusses five generic competitive strategies: low-cost provider, differentiation, best-cost provider, and focused strategies. It provides details on each strategy, including keys to success and potential pitfalls. For a low-cost strategy, a firm must make lowering costs a priority and find ways to achieve cost advantages that are difficult for rivals to copy. Differentiation requires incorporating unique features that cause buyers to prefer the firm's products over rivals. A best-cost strategy combines aspects of low-cost and differentiation to provide superior value. Focused strategies involve targeting a narrow niche market and developing capabilities to serve that niche's specific needs.
Subsidies and countervailing measures newAjit Kumar
This document discusses subsidies and countervailing measures in international trade. It begins by defining subsidies as monetary support provided by a government or public body to domestic producers or exporters. It then outlines international rules on subsidies from GATT/WTO agreements. Subsidies are categorized as prohibited, actionable, or non-actionable depending on their trade effects. Remedies for different subsidy types include disputes at the WTO or domestic countervailing investigations and duties.
Chap004 understanding company's resources and positionAjit Kumar
This chapter discusses analyzing a company's resources, competitive position, and strategy. It introduces five key questions to guide a situation analysis: 1) How well is the present strategy working? 2) What are the company's strengths, weaknesses, opportunities, and threats? 3) Are prices and costs competitive? 4) Is the company stronger or weaker than rivals? 5) What issues need attention? It then provides frameworks and approaches to answer each question, including assessing strategy performance, conducting a SWOT analysis, using value chain analysis and benchmarking to evaluate costs, and comparing the company to rivals on key success factors.
Chap010 strategy. ethics and social resposnsibilityAjit Kumar
This document discusses business ethics and social responsibility in strategy. It begins with a quote from Milton Friedman that the sole social responsibility of business is to increase profits. The document then outlines the chapter, which will cover strategy and ethics, social responsibility, and the linkage between strategy, ethics and social responsibility. It introduces the concepts of business ethics and three categories of management morality: moral, immoral, and amoral. The document also discusses drivers of unethical behavior, approaches to managing ethics, and ethics in a global context.
This chapter discusses the importance of corporate culture and its relationship to strategy execution. It defines corporate culture as a company's core values, beliefs, operating styles and behaviors. A company's culture can either help or hinder its ability to execute its strategy. When a company's culture promotes behaviors that are well-aligned with strategic requirements, it provides clear guidance to employees and drives commitment to strategic goals. However, cultural norms that conflict with strategic needs can create mixed signals and obstacles to execution. The chapter outlines different types of cultures and strategies for aligning culture and strategy, such as changing incentive systems, hiring practices, leadership and cultural symbols.
The document discusses five generic competitive strategies: low-cost provider, differentiation, best-cost provider, focus/niche, and their key characteristics. It provides an overview of each strategy, including their objectives, keys to success, benefits, pitfalls, and when each strategy works best. Choosing the right competitive strategy depends on a firm's resources and positioning in its market to outcompete rivals.
- A focus strategy involves concentrating resources on a narrowly defined market segment or niche. The firm aims to build a strong competitive advantage by focusing on the specialized needs of that niche.
- By focusing on a niche, businesses can compete through low costs, differentiation, or rapid response against larger competitors. The objective is to better serve niche buyers than rivals.
- Choosing a niche where needs are not met and developing expertise in it is key to success with a focus strategy. Examples include Family Dollar targeting low-income families and Ferrari/Rolls-Royce focusing on luxury cars.
This document provides an overview of Porter's five generic competitive strategies: low-cost provider, differentiation, best-cost provider, and focus/niche strategies. It includes definitions of each strategy, examples of companies that employ each strategy, and the characteristics that make a strategy suitable for a given competitive environment. The document also discusses the risks and pitfalls that companies should consider for each strategic approach.
The document summarizes chapter 5 of an organizational strategy textbook. It discusses the five generic competitive strategies businesses can pursue: low-cost provider, differentiation, focused low-cost, focused differentiation, and best-cost provider. It provides examples of companies like Walmart and Nucor that have successfully implemented a low-cost strategy. It also discusses how businesses can achieve differentiation through unique product features, services, or capabilities. The chapter examines the benefits, keys to success, and potential pitfalls of pursuing these competitive strategies.
The document discusses five generic competitive strategies: low-cost leadership, differentiation, best-cost provider, and focus strategies. It provides details on how each strategy works, keys to their success, and potential pitfalls. For example, it explains that low-cost leadership requires efficient operations to achieve an overall cost advantage over rivals, while differentiation relies on unique product attributes that are valued by customers.
Chapter 05 The Five Generic Competitive Strategies.pptxMehediHasan944698
The document discusses Porter's five generic competitive strategies: low-cost provider, differentiation, focused low-cost, focused differentiation, and best-cost provider. It explains the key factors that distinguish the strategies and when each strategy works best based on industry and market conditions. The major avenues for achieving a cost advantage as a low-cost provider include performing value chain activities efficiently and reconfiguring the value chain to reduce costs. Differentiation can be achieved by appealing product attributes that are valued by customers. Focused strategies target narrow market niches while best-cost providers offer quality products at lower prices than competitors.
1. The document discusses Michael Porter's model of generic competitive strategies including cost leadership, differentiation, and focus strategies. It provides details on how firms can achieve a cost advantage or implement differentiation.
2. Industry scenarios are described as a way for firms to consider different potential futures and make strategic choices to account for uncertainties. Scenarios help firms think beyond existing assumptions.
3. The five generic competitive strategies - cost leadership, differentiation, best-cost provider, and focus/niche strategies - are outlined. Contexts where each strategy may be most effective are also discussed.
The document discusses five generic competitive strategies that firms can pursue: low-cost provider, differentiation, best-cost provider, focus/niche, and stuck-in-the-middle. It outlines the objectives, keys to success, benefits, risks, and when each strategy works best. Firms must carefully analyze their resources and the market to choose the strategy that provides the best opportunity for a sustainable competitive advantage.
There are five generic competitive strategies for gaining competitive advantage: low cost provider, differentiation, focused low cost, focused differentiation, and stuck in the middle. A low cost strategy works best when price competition is strong, products are standardized, and buyers are sensitive to price. Differentiation strategies work when buyer needs are diverse. Focused strategies target a narrow niche. The strategy chosen must match a firm's resources and capabilities. Compromising leads to average performance.
This document discusses the five generic competitive strategies: low-cost provider, differentiation, focused low-cost, focused differentiation, and best-cost provider. It explains the key factors that distinguish each strategy and how they position firms differently in the market. The strategies aim to achieve either a cost advantage or differentiation. Circumstances that make each strategy more attractive are outlined. Potential pitfalls of each approach are also noted. Finally, it is emphasized that a competitive strategy is more likely to succeed if it leverages a firm's unique resources and capabilities.
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Training my puppy and implementation in this story
Chap005 five genric strategies
1. Chapter
5
The Five Generic
Competitive Strategies
Screen graphics created by:
Jana F. Kuzmicki, Ph.D.
Troy State University-Florida and Western Region
5-1
2. “Competitive strategy is about
being different. It means
deliberately choosing to
perform activities differently or
to perform different activities
than rivals to deliver a unique
mix of value.”
Michael E. Porter
3. Chapter Roadmap
Five Competitive Strategies
Low-Cost Provider Strategies
Differentiation Strategies
Best-Cost Provider Strategies
Focused (or Market Niche) Strategies
The Contrasting Features of the Five Generic Competitive
Strategies: A Summary
5-3
4. Strategy and
Competitive Advantage
Competitive advantage exists when a firm’s strategy gives it
an edge in
Attracting customers and
Defending against competitive forces
Key to Gaining a Competitive Advantage
Convince customers firm’s product / service offers superior
value
A superior product worth paying more for
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A good product at a low price
A best-value product
5. What Is
“Competitive Strategy”?
Deals exclusively with a company’s
business plans to compete successfully
Specific efforts to please customers
Offensive and defensive moves
to counter maneuvers of rivals
Responses to prevailing market conditions
Initiatives to strengthen its market position
Narrower in scope than business strategy
5-5
6. Fig. 5.1: The Five Generic
Competitive Strategies
5-6
7. Low-Cost Provider Strategies
Keys to Success
Make achievement of meaningful lower costs
than rivals the theme of firm’s strategy
Include features and services in product
offering that buyers consider essential
Find approaches to achieve a cost advantage
in ways difficult for rivals to copy or match
Low-cost leadership means low
overall costs, not just low
manufacturing or production costs!
5-7
8. Options: Achieving a
Low-Cost Advantage
Option 1: Use lower-cost edge to
Underprice competitors and attract
price-sensitive buyers in enough
numbers to increase total profits
Option 2: Maintain present price, be content with present market
share, and use lower-cost edge to
5-8
Earn a higher profit margin on
each unit sold, thereby
increasing total profits
9. Nucor Corporation’s
Low-Cost Provider Strategy
Eliminate some production processes from value chain used by traditional
Eliminate some production processes from value chain used by traditional
integrated steel mills; cut investment in facilities and equipment
integrated steel mills; cut investment in facilities and equipment
Strive hard for continuous improvement in the efficiency of its plants and
Strive hard for continuous improvement in the efficiency of its plants and
frequently invest in state-of-the art equipment to reduce unit costs
frequently invest in state-of-the art equipment to reduce unit costs
Carefully select plan sites to minimize inbound and outbound shipping
Carefully select plan sites to minimize inbound and outbound shipping
costs and to take advantage of low rates for electricity
costs and to take advantage of low rates for electricity
Hire aanonunion workforce that uses team-based incentive compensation
Hire nonunion workforce that uses team-based incentive compensation
systems
systems
Heavily emphasize consistent product quality and maintain rigorous
Heavily emphasize consistent product quality and maintain rigorous
quality systems
quality systems
Minimize general and administrative expenses by maintaining aalean staff
Minimize general and administrative expenses by maintaining lean staff
at corporate headquarters and allowing only 44levels of management
at corporate headquarters and allowing only levels of management
5-9
10. Approaches to Securing
a Cost Advantage
Approach 1
Do a better job than rivals of performing value
chain activities efficiently and cost effectively
Approach cost-producing
Revamp value chain to bypass 2
activities that add little value from the buyer’s
perspective
5-10
Control
costs!
By-pass
costs!
11. Approach 1: Controlling
the Cost Drivers
Capture scale economies; avoid scale diseconomies
Capture learning and experience curve effects
Manage costs of key resource inputs
Consider linkages with other activities in value chain
Find sharing opportunities with other business units
Compare vertical integration vs. outsourcing
Assess first-mover advantages vs. disadvantages
Control percentage of capacity utilization
Make prudent strategic choices related to operations
5-11
12. Approach 2: Revamping
the Value Chain
Make greater use of Internet technology applications
Use direct-to-end-user sales/marketing methods
Simplify product design
Offer basic, no-frills product/service
Shift to a simpler, less capital-intensive, or more flexible
technological process
Find ways to bypass use of high-cost raw materials
Relocate facilities closer to suppliers or customers
Drop “something for everyone” approach and focus on a
limited product/service
5-12
13. Keys to Success in Achieving
Low-Cost Leadership
Scrutinize each cost-creating activity, identifying cost drivers
Use knowledge about cost drivers to manage
costs of each activity down year after year
Find ways to restructure value chain to eliminate
nonessential work steps and low-value activities
Work diligently to create cost-conscious corporate cultures
Feature broad employee participation in continuous cost-improvement
efforts and limited perks for executives
Strive to operate with exceptionally small corporate staffs
Aggressively pursue investments in resources and capabilities that
promise to drive costs out of the business
5-13
14. Characteristics of a
Low-Cost Provider
Cost conscious corporate culture
Employee participation in cost-control efforts
Ongoing efforts to benchmark costs
Intensive scrutiny of budget requests
Programs promoting continuous cost improvement
Successful low-cost producers champion
frugality but wisely and aggressively
invest in cost-saving improvements !
5-14
15. When Does a Low-Cost
Strategy Work Best?
Price competition is vigorous
Product is standardized or readily available
from many suppliers
There are few ways to achieve
differentiation that have value to buyers
Most buyers use product in same ways
Buyers incur low switching costs
Buyers are large and have
significant bargaining power
Industry newcomers use introductory low prices to attract
buyers and build customer base
5-15
16. Pitfalls of Low-Cost Strategies
Being overly aggressive in cutting price
Low cost methods are easily imitated by rivals
Becoming too fixated on reducing costs
and ignoring
Buyer interest in additional features
Declining buyer sensitivity to price
Changes in how the product is used
Technological breakthroughs open up cost reductions for
rivals
5-16
17. Differentiation Strategies
Objective
Incorporate differentiating features that cause buyers to
prefer firm’s product or service over brands of rivals
Keys to Success
Find ways to differentiate that create value for buyers and are
not easily matched or cheaply copied by rivals
Not spending more to achieve differentiation
than the price premium that can be charged
5-17
18. Benefits of Successful
Differentiation
A product / service with unique, appealing
attributes allows a firm to
Command
Increase
Build
a premium price and/or
unit sales and/or
brand loyalty
Which
hat is
unique?
= Competitive Advantage
5-18
19. Types of Differentiation Themes
Unique taste -- Dr. Pepper
Multiple features -- Microsoft Windows and Office
Wide selection and one-stop shopping -- Home Depot and
5-19
Amazon.com
Superior service -- FedEx, Ritz-Carlton
Spare parts availability -- Caterpillar
More for your money -- McDonald’s, Wal-Mart
Prestige -- Rolex
Quality manufacture -- Honda, Toyota
Technological leadership -- 3M Corporation
Top-of-line image -- Ralph Lauren, Chanel, Cross
20. Sustaining Differentiation: Keys
to Competitive Advantage
Most appealing approaches to differentiation
Those hardest for rivals to match or imitate
Those buyers will find most appealing
Best choices to gain a longer-lasting, more profitable
competitive edge
Technical superiority
Product quality and reliability
Comprehensive customer service
5-20
New product innovation
Unique competitive capabilities
21. Where to Find Differentiation
Opportunities in the Value Chain
Purchasing and procurement activities
Product R&D and product design activities
Production process / technology-related activities
Manufacturing / production activities
Distribution-related activities
Marketing, sales, and customer service activities
Activities,
Costs, &
Margins of
Suppliers
5-21
Internally
Performed
Activities,
Costs, &
Margins
Activities, Costs,
& Margins of
Forward Channel
Allies &
Strategic Partners
Buyer/User
Value
Chains
22. How to Achieve a
Differentiation-Based Advantage
Approach 1
Incorporate product features/attributes that
lower buyer’s overall costs of using product
Approach 2
Incorporate features/attributes that raise the
performance a buyer gets out of the product
Approach 3
Incorporate features/attributes that enhance buyer
satisfaction in non-economic or intangible ways
Approach 4
Compete on the basis of superior capabilities
5-22
23. Importance of Perceived Value
Buyers seldom pay for value that is not perceived
Price premium of a differentiation strategy reflects
Value actually delivered to the buyer and
Value perceived by the buyer
Actual and perceived value can differ when buyers are unable
to assess their experience with a product
5-23
24. Signaling Value as Well
as Delivering Value
Incomplete knowledge of buyers causes them to
judge value based on such signals as
Price
Attractive packaging
Extensive ad campaigns
Ad content and image
Characteristics of seller
Facilities
Customers
Professionalism and personality of employees
Signals of value may be as important as actual value when
5-24
Nature of differentiation is hard to quantify
Buyers are making first-time purchases
Repurchase is infrequent
Buyers are unsophisticated
25. When Does a Differentiation
Strategy Work Best?
There are many ways to differentiate a product
that have value and please customers
Buyer needs and uses are diverse
Few rivals are following a similar
differentiation approach
Technological change and
product innovation are fast-paced
5-25
26. When Does a Differentiation
Strategy Work Best?
There are many ways to differentiate a product that have
value and please customers
Buyer needs and uses are diverse
Few rivals are following a similar
differentiation approach
Technological change and
product innovation are fast-paced
5-26
27. Pitfalls of
Differentiation Strategies
Buyers see little value in unique attributes of product
Appealing product features are easily copied by rivals
Differentiating on a feature buyers do not perceive as lowering
their cost or enhancing their well-being
Over-differentiating such that product
features exceed buyers’ needs
Charging a price premium
buyers perceive is too high
Not striving to open up meaningful gaps in quality, service, or
performance features vis-à-vis rivals’ products
5-27
28. Best-Cost Provider Strategies
Combine a strategic emphasis on low-cost with a strategic
emphasis on differentiation
Make an upscale product at a lower cost
Give customers more value for the money
Objectives
Deliver superior value by meeting or exceeding buyer
expectations on product attributes and beating their price
expectations
Be the low-cost provider of a product with good-to-excellent
product attributes, then use cost advantage to underprice
comparable brands
5-28
29. Competitive Strength of a
Best-Cost Provider Strategy
A best-cost provider’s competitive advantage comes
from matching close rivals on key product attributes and
beating them on price
Success depends on having the skills and capabilities to
provide attractive performance and features at a lower
cost than rivals
A best-cost producer can often out-compete both
a low-cost provider and a differentiator when
Standardized features/attributes
won’t meet diverse needs of buyers
Many buyers are price and value sensitive
5-29
30. Risk of a Best-Cost
Provider Strategy
A best-cost provider may get squeezed between strategies of
firms using low-cost and differentiation strategies
5-30
Low-cost leaders may be able to siphon
customers away with a lower price
High-end differentiators may be able to
steal customers away with better product attributes
31. Focus / Niche Strategies
Involve concentrated attention on a narrow piece of the total
market
Objective
Serve niche buyers better than rivals
Keys to Success
Choose a market niche where buyers have distinctive
preferences, special requirements, or unique needs
Develop unique capabilities to serve needs of target buyer
segment
5-31
32. Approaches to Defining
a Market Niche
Geographic uniqueness
Specialized requirements in
using product/service
Special product attributes
appealing only to niche buyers
5-32
33. Examples of Focus Strategies
eBay
Online auctions
Porsche
Sports cars
Jiffy Lube International
Maintenance for motor vehicles
Pottery Barn Kids
Children’s furniture and accessories
Bandag
5-33
Specialist in truck tire recapping
34. Focus / Niche Strategies
and Competitive Advantage
Approach 1
Achieve lower costs than
rivals in serving the segment -A focused low-cost strategy
Approach 2
Which hat
is unique?
Offer niche buyers something
different from rivals -A focused differentiation strategy
5-34
35. What Makes a Niche
Attractive for Focusing?
Big enough to be profitable and offers good growth potential
Not crucial to success of industry leaders
Costly or difficult for multi-segment competitors
to meet specialized needs of niche members
Focuser has resources and capabilities
to effectively serve an attractive niche
Few other rivals are specializing in same niche
Focuser can defend against challengers via superior ability to
serve niche members
5-35
36. Risks of a Focus Strategy
Competitors find effective ways to match
a focuser’s capabilities in serving niche
Niche buyers’ preferences shift towards product attributes
desired by majority of buyers – niche
becomes part of overall market
Segment becomes so attractive it becomes crowded with
rivals, causing segment profits to be splintered
5-36
37. Deciding Which Generic
Competitive Strategy to Use
Each positions a company differently in its market and
competitive environment
Each establishes a central theme for how a company will
endeavor to outcompete rivals
Each creates some boundaries for maneuvering as market
circumstances unfold
Each points to different ways of experimenting with the basics
of the strategy
Each entails differences in product line, production emphasis,
marketing emphasis, and means to sustainthe strategy
5-37
38. Deciding Which Generic
Competitive Strategy to Use
Each positions a company differently in its market
Each establishes a central theme for how a company will endeavor
to outcompete rivals
Each creates some boundaries for maneuvering as market
circumstances unfold
Each points to different ways of experimenting with the basics of the
strategy
Each entails differences in product line, production emphasis,
marketing emphasis, and means to sustain the strategy
The big risk – Selecting a “stuck in the middle” strategy!
This rarely produces a sustainable competitive
advantage or a distinctive competitive position.
5-38