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unit3 (business-level strategy (five business-level strategies to obtain…

- - - - identifying which customer needs and customer groups to focus on
      - decide whether it intends to perform activities
        differently or to perform different activities
  - - - protection against price pressure from suppliers and buyer
      - competitive pricing compare to the price of substitutes
      - provides protection against rivalry and price wars
      - creation of higher entry barriers
    - - vulnerablility to imitation.
      - risk of losing sight of customer needs or technological advances.
  - - - protection against price pressure from suppliers
      - higher entry barriers & protection from substitutes
      - provide decreased rivalry due to brand loyalty
      - 4.low customer defection
    - - 1.risk of losing their source of uniqueness.
      - risk from changing customer preferences and price competition.
  - - - provide niche strategy that protects against the rivals and new entrants
      - power over buyer and lower risk from substitutes
    - - the risks from powerful suppliers
      - higher cost
      - 3.disappearance of the niche
      - vulnerability to competition from large firm
- - - - take an initial competitive action,
      - First movers are firms that have the resources and capabilities, core competencies that enable them to gain a competitive advantage through innovative and entrepreneurial competitive actions.
      - first mover hopes
        
        earn above-average returns until competitors respond effectively
        
        gain customer loyalty, thus creating a barrier to entry by competitors
        
        gain market share that can be difficult for competitors to take in the future
    - - firms that respond to a first mover’s competitive
        action, typically through imitation
      - Hopes
        
        avoid both the mistakes and the huge spending of the pioneers
        
        have time to develop processes and technologies that are more
        efficient than those used by the first mover
        
        respond quickly to the first movers’ successful
        
        4.Rapidly and meaningfully interpret market feedback to respond quickly
  - - - The resulting uncertainty about customer needs and the technical difficulties involved in producing the product mean that being a first mover is a high-risk strategy.
      - If the resources, capabilities or competencies required are unique to the first mover, imitability is low
      - experience curve
        effect
        
        more experience in marketing and developing the product or service, and this should enable it to enhance the product or service, or lower costs compared with competitors
      - 4.Pre-emption
        
        taking an action first, the chance or
        attractiveness of others taking a similar action is greatly reduced.