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SMMC G6 [BS-4], G6 group members - Coggle Diagram

- - - - Problems
        
        Strategy constantly involves tradeoffs
        
        Example
        
        Failed
        
        GM & Saab
        
        Main strategy
        
        2 more items...
        
        Timeline
        
        4 more items...
        
        Successful
        
        Dell
        
        Computer Industry
        
        Cost Leadership
        
        1 more item...
        
        Differentiation Advantage
        
        2 more items...
        
        Honda&Toyota
        
        High quality product reduce the costly rework and repair
        
        Design&Manufacturing:adopt TQM practice
        
        Management Innovation:decrease or at least control costs while increasing value at the same time
        
        Stuck in the middle
        
        Fundamental forces work against
        dual advantages
        
        become incoherent leads to competitive
        disadvantage
      - Conclusion
        
        Dual Strategy is difficult
        
        Cost versus differentiation tradeoffs
        
        “Stuck in the middle” problem
        
        Dual advantage may be feasible
        
        Managerial innovation needed clear, disciplined way of managing cost-differentiation tradeoffs
- - - - Deep knowledge and strong intellectual property in the film, paper, and photochemical business
    - - Meticulous product development, marketing and systems engineering processes
    - - Leveraging its strengths in film and polymers→successful business in membranes and filters for industrial applications
      - launched a successful cosmetics line called ASTALIFT
      - applying its film technology towards coating in LCD screens and touch screens
  - - - Customer service
      - Leading edge logistics
    - - Strong competitors: Walmart,Amazon
      - Overall strategy unable to adapt to the new environment
        
        Ended up undermining the company's key sources of competitive advantage
      - Used up cash to buy back shares
      - Laid off talented sales man
      - Hire low-paid emploees
  - - - Enable a company to change resources or capabilities
    - - new product development
      - business development
      - organizational transformation
      - alliances
      - conducting acquisitions
    - - Positions
        
        Resources owned or available
      - Paths
        
        Opportunities, strategic options
      - Processes
        
        Well-developed activities and routines
      - Cons
        
        Lack of many in-depth details.
        
        depend heavily on the skills and judgment of the person
    - - Keep well aligned with the environment
      - Enjoying a clear competitive advantage
- - - - the company produces products or services that are similar to its competitors, but at a lower cost.
      - placing most of its emphasis on controlling costs in order to generate economic value added and profits
    - - production techniques
        
        total quality management
        
        reducing waste
        
        automation
      - product design
        
        design for manufacturing
        
        efficient materials use
        
        design variety and complexity
      - inputs costs
        
        location
        
        supplier relationship/bargaining
        
        raw material sources
      - capacity utilization
        
        amortization of high fixed cost assets
        
        filling spare capacity
      - scale/scope economies
        
        large batch sizes
        
        indivisible costs
        
        specialization
        
        common inputs
      - organizational or managerial inefficiency
        
        bureaucracy
        
        inertia
        
        slow decision making
        
        hierarchy
        
        politics
    - - to reduce or eliminate unwanted costs that add very little or no value
    - - look at any of the cost drivers of a business in order to reducing the expense of producing the company's product or service
    - - to reduce costs by avoiding some customer segments that are too costly to serve
        
        exemple
        
        the hamburger chain Checkers or Rallies
        
        drive through sales
        
        IKEA
        
        Do-it-yourself furniture chain
        
        GEICO
        
        sells to customers through the phone and internet, not through insurance agents
  - - - the company produces products or services that are unique and different from competitors.
      - emphasizing value creation for customers rather than cost control and produces higher EVA and profits
    - - customer services
        
        e.g. hotel industry
      - customization
        
        e.g. Starbucks customized services
      - product features
        
        e.g. smartphone industry
      - complements
        
        e.g. Apple iTunes store (legal music)
    - - identify customers' value drivers, which relies on market research and combine that with firm's insights about customers
      - Once we know what kinds of things customers value, then it is back to figuring out how to use resources, capabilities of the firm system of activities to create that value
    - - focused differentiation advantage
        
        narrow scope and differentiation are often a natural fit
        
        contains costs
        
        cost leadership
        
        promotes exclusivity that makes them more valuable to customers
      - they are targeted at a narrower market segment and limited distribution channel