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Competitive Strategy and Strategic Direction for THE - Coggle Diagram
Competitive Strategy and Strategic Direction for THE
Strategy formulation
Key issues
Competitive advantage
Product/service development
Strategic methods
Competitive Strategy
Definition: Achievement of competitive advantage
Importance in private vs. public sectors
Importance in private vs. public sectors
Michael Porter’s Generic Strategies
Introduction
Differentiation
Cost Leadership
Focus
Cost Leadership Strategy
Definition: Lowest cost producer
Benefits
Higher profits, increased market share
Price sensitivity engagement
Barriers to entry
Methods of achieving cost leadership
Reducing costs
Economies of scale
Efficient resource use
Differentiation Strategy
Definition: Perception of superior product
Benefits
Premium pricing
Less price elasticity
Barriers to entry
Methods of differentiation
Superior product features
High-level service
Strong brand identity
Unique distribution channels
Focus Strategy
Definition: Targeting a specific market segment
Benefits
Lower resource investment
Greater segment knowledge
Simpler market entry
Targeting strategies
Buyer groups
Geographic locations
Benefits sought by customers
Limitations of Porter’s Framework
Criticisms and adaptations
Hybrid strategies
Market demand considerations
Combined strategies
Strategy Clock Framework
Enhancements to Porter’s model
Differentiation and cost-control recognition
Competitive Strategies in THE - Poon’s Framework
Service orientation
Consumer sophistication
Information technology diffusion
Continuous innovation
Competence-Based Competitive Advantage
Sources of competitive advantage
Architecture
Reputation
Innovation
Strategic assets
Knowledge Management as Advantage
Importance in service organizations
Case examples (e.g., Hilton International)
Sustainable Competitive Advantage
Definition and factors for sustainability
Durability
Transparency
Replicability
VRIO Framework
Value
Rarity
Imitability
Organizational capability
Strategic Directions
Growth, stability, retrenchment orientations
Ansoff Matrix
Market penetration
Market development
Product development
Diversification
Retrenchment Strategies
Turnaround
Captive company
Divestment
Bankruptcy/liquidation