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(overview, Generic Business Strategies) - Coggle Diagram
overview
dual strategies
stuck in the middle
strategic positioning
generic strategies
strategic renewal
3-P dynamic capabilities framework
differentiation advantage and cost leadership
Generic Business Strategies
create a competitive advantage
and higher economic value added
differentiation advantage
unique and different product
a price premium
value creation
value drivers
product features
customer service
customization
complements
ex: Apple and iTunes store
deliver value
apply its
resources, capabilities or activities
in its
value chain
or
value network
cost leadership
similar products or service
lower cost
control cost
ex: Walmart
make profit on high volume and fast turnover
it is backed by the ability to keep costs low.
key resources
a network of warehouses
a fleet of trucks
a good IT system for managing the logistics
strong supplier relationships
procurement capability
cost drivers
scale and learning economies
input costs
production techniques
managerial inefficiency or bureaucracy
strategic positioning
cost leadership
cost & broad target market
differentiation
value & broad target market
focused low cost
cost & narrow target market
ex: Ikea
Ikea does not want to sell to customers who want their furniture pre-assembled, as they are more costly to serve
do-it-yourself furniture
focused differentiation
value & narrow target market
ex: luxury products
targeted at a narrower market segment and limited distribution channels