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SMGT T6 (Ch6): Strengthening a company's competitive position…
SMGT T6 (Ch6): Strengthening a company's competitive position
Defensive strategies (153)
(a) put obstacles in place that would block any avenues open to challengers (154)
(b) take actions that would signal to competitors that a strong and potentially costly (for them) retaliation will be undertaken by the company when attacked (155)
Offensive strategies (150)
using a cost-based advantage
first-mover advantage (155)
continuous product innovation
pursuing disruptive product innovations
adopting and improving other companies' ideas
guerrilla warfare tactics
pre-emptive strike
Scope of operations (158)
Horizontal merger and acquisition strategies (159)
Downsides (161)
Lower than expected cost savings
Taking longer than expected
Resistance to change from human resources
Cultural issues
Failure e.g.
Fiat / Chrysler
Oracle / Sunmicrosystems
Google / Motorola
Reasons (160)
expand geographic coverage
extend the company's business into new products or international markets
gain access to new technologies without time-consuming R&D effort
take advantage of the blurring of industry boundaries by technological advances
create a more efficient operation by closing high-cost plants and eliminating surplus capacity
Vertical integration strategies (162)
Advantages (163)
Forward - incorporating down the supply chain
Backward - incorporating up the supply chain
Disadvantages (165)
Strategic alliances and partnerships (167)
Reasons (170)
collaborate on technology or product development
balance deficiencies in technical and manufacturing expertise
gain new competencies
improve the supply chain
gain economies in production and/or marketing, and
boost distribution effectiveness (market access)
Drawbacks (172)
Types
Joint ventures - ownership based
Strategic alliances - agreement based
6 factors of success (171)
Being sensitive to cultural differences
Picking a good partner
Recognising the alliance must benefit both sides
Ensuring both parties live up to their committments
Structuring the decision-making process so that actions can be taken swiftly when needed
Managing the learning process and then adjusting the alliance agreement over time to fit new circumstances
Advantages over M&A, integration and outsourcing (173)
How to make it work (173)
Protect themselves against opportunism
Make, uphold and expect committment
Build relationships and establish trust
Make learning part of the process
Create a system to manage alliance/s
Outsourcing strategies (167)
Benefits (167)
Narrowing the scope
Risks (168)
Question of internal and external funtionality
Strategic decisions to make:
Offensive or defensive approach and timing
Scope of operations
Which generic strategy to pursue? (T5/Ch5)
Blue-ocean strategy (152)
Takes innovation to achieve and much more to maintain
Moving into untapped market segments
Timing (155)
Fast-follower
Late-mover
First-mover
Advantages (155)
Disadvantages (156)
Key questions to ask? (158)