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Chapter 7+8( Overview of strategy and the enterprise in international…

- - - - Buyers represent only a small part of sales by the supplier
      - Switching costs are high and it is disruptive or expensive to change
        suppliers
      - There are very few of them and they provide a specialist or rare input
  - - - Economies of scale/high fixed costs.
      - High experience and learning needed
      - Difficulty in accessing supply
      - High differentiation and market penetration costs
      - Difficult government restrictions
  - - - Buyers have low switching costs
      - Buyers can supply their own inputs
      - A few buyers account for the majority of sales
  - - - Competitors are of roughly equal size
      - The market is mature or declining
      - There are high fixed costs
      - There is a low level of differentiation
  - - - the price/performance of the substitute is superior
- - - - we target ones that are
- - - - pixar
      - for dynamic environments
      - allowing flexibility to exploit unanticipated opportunities
    - - for stable environment
      - machine like and focus on efficiency while focusing on only occuping the current position
      - CASIO
      - A business gains competitive advantage by choosing a valuable and unoccupied strategic position in a given industry
    - - PEPSI CO
      - They have a diverse business portfolio
      - moderately dynamic environments
      - CA is achieved by using strategically important resources in existing and new industries at a pace consistent with moderate changes in the market