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(ASM)G3_Competitve position (which position is the best (way 3 (how…
(ASM)G3_Competitve position
Generic Competitive Positions, Part 2
Focused Low-Cost Strategy
What
Keeping costs lower than competitors
Narrow segment or the market
Entry strategy by foreign firms, new ventures
Example : Kia
Low cost auto manufacturer
Focus on competing on cost
Niche Strategy
What
Generating rents from higher consumer willingness-to-pay
Small, premium market
Example:
Tiffany, Porsche
Special, well-know, high quality
Focus on gaining knowledge, expertise, and build brand loyalty
Integrated Strategies
An integrated competitive position
Offer differenciated prouducts while offer them at a low cost
Example: Toyota
Offer largely lower cost cars but also good at quality
:warning: Beware of getting stuck in the middle
Mapping Competitive Positions
Strategy map
Two or three factors
Vertical access
Horizontal access
Size of the circle
Not evident at the outset which is the most important
Trial and error
Help us identify and put firms in different areas on the map
Example
Automobile industry
Sportiness
Average Vehicle Cost
Numbers of model
which position is the best
goal
valuabe competitive position
way 2
Firm capability
way
capabilities analysis
people、processes 、 systems 、 alignment
Industry structure
way
five forces analysis
way 1
value & opportunity & capability
way 3
which positions are better than others?
how contested is a position?
blue ocean
Do we have the capabilities to establish a great key competitive position?
if we can defend this competitive position once we've established it.
Determining Competitive Positioning
Valuable Competitive Position
Value, opportunities and capabilities
Goal
To understand a firm's particular competitive position within an industry or market segment with respect to all of the other competitors.
Hyundai Automobile
To understand the dynamics of an industry and the positioning of a firm relative to its competition.
Generic Competitive Position
Four different ideal types
Horizontal
Source of advantage
Industry
Low-cost firm
Differentiator
Vertical
Competitive Scope
Generic Competitive Positions, Part 1
Cost leadership
Use low cost input,offshoring
Dell, Wal-mart
Minimize overhead sch as R&D,advertising
Dell
Build market share to gain EOS
Anheuser-Busch
Engage in cost-cutting
Wal-mart
State-of-the-art operations/continuous imporvement
NUCOR
Diferentiation
Invest in human resource,R&D
Goldman
Develop innovative capability
Intel,Apple
Crate band through advertising
Nike
