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Bussiness Strategy - Coggle Diagram
Bussiness Strategy
Stages of Industry evolution and business strategy choices
Competitive advantage and strategic choices in emerging industries
-Technologies that are mostly proprietary to the pioneering firms and technological uncertainty about how product standardization will unfold
-Competitor uncertainly because of inadequate information about competitors, buyers, and the timing of demand.
-High initial costs but steep costs declines as the experience curve takes effect.
-Few entry barriers, which often spurs the formation of many new firms.
-First-time buyers requiring initial inducement to purchase and costumers confused by the availability of a number of nonstandard products.
Competitive advantage and strategic choices in growing industries
-The ability to establish strong band recognition through promotional resources and skills that increase selective demand.
-The ability and resources to scale up to meet increasing demand wich may involve production facilities, service capabilities, and the training and logistics associated with that capacity.
-Strong product desing skills to be able to adapt products and services to scaled operations and emerging market niches.
-The ability to differentiate the firm's products form competitors entering the market.
-R&D resources and skills to create product variations and advantages.
-Strong capabilities in sales and marketing.
Competitive advantages and strategic choices in declining industries.
-Focus on segments within the industry that offer a chance for higher growth or a higher return.
-Emphasize product innovation and quality improvemnet, where this can be done cost effectively, to differentiate the firm from rivals and to spur growth.
-Emphasize the production and distribution efficiency
-Gradually harvest bussiness.
Competitive advantage in fragmented industries
-Thighly managed decentralization.
-"Formula" facilities
-Increased value added.
-Specialization.
-Bare bones/no frills
Competitive advantage in global industries
-Differences in prices and costs form conuntry to country due to currency exchange fluctuations, differences in wage and inflation rates, and other economic factors.
-Differences in buyer needs across different countries.
-Differences in competitors and ways of competing from country to country.
-Differences in trae rules and governmental regulations across different countries.
Evaluating differentiation Opportunities
-Rivalry is reduced when a bussiness successfully differentiates itself.
-Buyers are less sensitive to prices for effectively differentiated products.
Skills and resources that foster cost leadership
-Strong marketing abilities.
-Product engineering.
-Creative talent and flair.
-Strong capabilities in basic research.
-Corporate reputation for quality or technical leadership.
-Long tradition in an industry or unique combination of skills drawn from other businesses.
-Strong cooperation from channels.
-Strong cooperation from suppliers of major components of the product or service.
Organizational requirements to support and sustain differentiation activities
-Strong coordination among functions in R&D, product development, and marketing.
-Subjective measurement and incentives instead of quantitative measures.
-Amenities to attract highly skilled labor, scientists, and creative people.
-Tradition of closeness to key customers.
-Some personnel skilled in sales and operations-technical and marketing.
Evaluating and choosing to diversify to bulild value
Grand strategy slection matrix
Model of grand strategy clusters
Opportunities for building value as a basis for choosing diversification or acquisition
Evaluating cost leadership opportunities
Skills and resources that foster cost leadership
-Sustained capital investment and access to capital.
-Process engineering skills.
-Intense supervision of labor or core technical operations.
-Products or services designed for ease of manufacture or delivery.
-Low-cost distribution system.
Organizational Requirements to support and sustain cost leadership activities
-Tight cost control
-Frequent, detailed control reports.
-Continuous improvement and benchmarking orientation.
-Structured organization and responsibilities.
Incentives based on meeting strict, usually quantitative targets.
Evaluating speed as a competitive advantage
Skills and resources that foster speed
-Process ingeniering skills.
-Excellent inbound and outbound logistics.
-Technical people in sales and customer service.
-High levels of automation.
-Corporate reputation for quality or technical leadership.
-Flexible manufacturing capabilities.
-Strong downstream partners.
-Strong cooperation from suppliers of major components of the product or servicetext
Organizational requirements to support and sustain rapid response activities
-Strong coordination among functions in R&D, product development, and marketing.
-Major emphasis on customer satisfaction in incentive programs.
-Strong delegation to operating personnel.
-Tradition of closeness to key customers.
-Some personnel skilled in sales and operations- technical and marketing
-Empowered customer service personnel.
Evaluating market focus as way to competitive advantage
It consists in focusing on a niche market, differentiating the product and it's sales force; achieving low costs in promotion and delivery; and making rapid, inmmediate response to any owner request it's normal practice