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[FBS]Determining Competitive Position(Week4) (Team menbers (Miki, May,…
[FBS]Determining Competitive Position(Week4)
4.decision
which positions are better than others
company's value
industry structure
five forces analysis
Is there enough to allow us to defend a position once we enter
blue/red ocean strategy
competitive advantages
Do we have the capabilities to establish a great key competitive position
firm's capabilities
capabilities analysis
1.Determining Competitive Positioning
How to find valuable competitive position
Capabilities
Opportunities
Values
Generic competitive position
Competitive scope
How broadly has a firm offer different product line/into different kind of services
Geographic location
Source of advantage
What are the implications of being in a particular competitive position
How they influence whether or not a firm want to make a move
How does a company moves
2.Generic Competitive Positions
Source of competitive advantage
Cost
Uniqueness
Differentiation
To command price premiums from unique features
Eg. Target, Apple, Intel, BMW, Goldman Sachs
Strategic Approaches
Develop innovative capability
Intel, Apple
Invest in human resources, R&D
Goldman
Create brand through advertising
Nike
Integrated strategy
Introduction
Capture the best of both worlds
Strategic approaches
Focus on total quality management or lean production
Invest heavily in R and D or innovation
Beware of getting stuck in the middle
e.g. General Motors
Competitive Scope
Narrow
Low-cost strategies
Introduction
Keep cost lower in a narrower segment of the market
Be used as an entry strategy
It's easier to come in and not try to offer everything, but offer a few things which are at a better price
e.g. Kia is a low cost auto manufacturer.
Strategic approaches
Deter rivalry by kind of dividing the market up
Capture some narrow economies of scale
Niche strategy
Introduction
Try to compete based on uniqueness
Like the differentiation strategy
Target a small
Strategic approaches
Gain knowledge and expertise
Build brand loyalty
e.g. Porsche
Broad
Cost Leadership
To offer standardized products
Eg. Henry Ford
Strategic Approaches
Engage in cost-cutting
Wal-mart
Build market share to gain EOS
Anheuser-Busch
Use low-cost inputs, offshoring
Wal-mart, Dell
Minimize overhead such as R&D, advertising
Dell
State-of-art operations/continuous improvement
Nucor
3.Strategy map
Example: automobiles
Kia
Focus cost leadership
Porsche
High differentiation
Take three factors to understand a firm's position in an industry,and mapping with the different competitors
these aren't necessarily the three most important one
Team menbers
Miki
May
Cindy
Joanna
Jamie
Andrianto
