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Porter competitive strategy (HBR, 1996) (Operational effectiveness…
Porter competitive strategy (HBR, 1996)
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Competitive advantage
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Examples
Southwest airlines - low cost, no frills. Have set up their business models to fit price sensitive, convienience focused customers
Needs to be more than just a marketing slogan - essence of strategy needs to be in the activities performed
Ikea targets young furniture buyers who want style at low cost - have a tailored set of activities that enable this. Trade service for cost
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Strategic positions
Variety based positions
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Jiffy lube given as example - only specialises in one product, customers go elsewhere for others
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Trade offs
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Create the need for choice - you can't be all things to all customers. Creates the need for strategy
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Strategic fit
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Fit locks out imitators as creates a value chain. One activity compliments another. Little benefit form imitation unless all system is copied
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Strategy is about creating fit amongst companies activities. If there is no fit amongst activities there is no strategy and little sustainabiltiy
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Emerging industries
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Often have explosive growth which can be limited as people start to imitate and strategic convergence happens
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