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4 Strategy (Corporate Strategy (three main types (renewal strategy (2…

- - - - expands the number of markets served or products offered, either through its current business(es) or through new business(es).
      - Organizations grow by using concentration, vertical integration, horizontal integration, or diversification.
        
        concentration
        
        focuses on its primary line of business and increases the number of products offered or markets served in this primary business.
        
        vertical integration
        
        backward
        
        becomes its own supplier
        
        eBay owns PayPal
        
        forward
        
        becomes its own distributor
        
        Apple retail stores.
        
        both
        
        horizontal integration
        
        combining with competitors
        
        diversification
        
        Related diversification
        
        Google has acquired a number of businesses (some 150 total), including YouTube, DoubleClick, Nest, and Motorola Mobility.
        
        Unrelated diversification
    - - an organization continues to do what it is currently doing
    - - address declining performance
      - 2 types
        
        turn-around
        
        retrenchment
        
        a short-run renewal strategy used for minor performance problems.
      - cut costs and restructure organizational operations
  - - - horizontal axis
        
        market share (low or high)
      - vertical axis
        
        anticipated market growth (low or high).
      - Dogs
        
        sold off or liquidated
      - cash cows
        
        milk them
        
        limit any new investment in them
        
        use the large amounts of cash generated to invest in stars and question marks
      - Star
        
        take advantage of the market’s growth
        
        eventually develop into cash cows
      - Question mark
        
        some will be sold off
        
        others strategically nurtured into stars.
- - - - 2010 google vs microsoft
      - apple >> mac
        
        REAL competition
        
        indirect competitions
    - - price 20 years ago = now
      - no luxury
      - profit << thin
  - - - potential entrants
        
        supply-side of economies of scales
        
        walmart
        
        demand side of economy of scales
        
        whatsapp and wechat
        
        face time
        
        facebook << huge data
        
        customer switching cost
        
        windows vs mac
        
        new generation
        
        keyboard
        
        capital requirement
        
        restaurant vs steel
      - suppliers
        
        supplier concentration
        
        intel
        
        differentiated product
        
        lightening McQueen
        
        few or no substitute
        
        patent-protected medicine
      - substitutes
      - buyers
        
        buyer concentration
        
        costco
        
        low customer switching cost
        
        Expedia
        
        undifferentiated products
      - complements
    - - It is possible to make good money in a tough industry. The key is to find a way to deal effectively with the five forces
      - It’s possible to identify a profitable position that is not yet occupied.
      - It is possible to influence industry structure
  - - - threats
        
        propose contingency plans for potential threats.
      - opportunities
        
        Change in society (e.g., culture, social class or population)
        
        Market trend (e.g., new product and technology and shift in customer needs)
        
        Economic trend (e.g., local, national and international financial trend)
        
        Beneficial legislation (e.g., political, economic and environmental regulations)
        
        External Funding (e.g., donations, financial market, bond)
        
        Suppliers or partners
    - - strengths
        
        Financial resources (e.g., funding, sources of income and investment opportunities)
        
        Physical resources (e.g., locations, facilities and equipment)
        
        Human resources (e.g., employees, volunteers and participants)
        
        Intellectual resources (e.g., trademarks, patents and copyrights)
        
        Management processes (e.g., workflow, employee program, department hierarchies)
      - weaknesses
        
        convert the weaknesses into strengths or at least minimize the negativity of weaknesses.
- - - - differenciation
        
        case of Cirque du Soleil (太陽馬戲團)
      - low cost
        
        case of Southwest
    - - market segmentation
        
        example
        
        pain relief otc drugs
        
        effectiveness
        
        gentleness
      - positioning
        
        identify a unique selling proposition for the product.
        
        for a product to occupy a clear, distinctive, and attractive position relative to competing products in the minds of target consumers.