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42 Cards in this Set
- Front
- Back
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competitive advantage |
when two or more firms compete within the same market, one posses competitive advantage over its rivals. |
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Is the same competitive advantage and profitability? |
NO, una firm puede preferir invertir en techonology or market share |
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external sources os changes |
the change must have differential effects on companies because their different resources and capabilities on strategic positioning.
external change created competitive advantage depending on the magnitude of the change and the extent of the firm strategic differences. |
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how does competitive advantage emerge ? |
1. internal sources change (more creative and innovative capability)
2. external sources change (reduce heterogeneity among firms) (some firms are faster exploiting change & more effective)
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internal sources change |
more creative and innovative capability |
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external sources change |
reduce heterogeneity among firms
some firms are faster exploiting change & more effective |
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Strategy innovation |
creating consumers value from new products, experiences or models of product delivery
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Innovative strategies |
1. creating whole new markets
2. creating whole new customers segments
3. new sources of competitive advantage
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new sources of competitive advantage |
1. reconfiguring value chain 2. reconceptualizing the product 3. new performance combination |
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competitive advantage against imitation |
?¿?¿?¿?¿? |
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competitive advantage against imitation |
DIAGNOSIS rely upon multiple resources of competitive advantage o create "casual ambiguity" DETERRENCE signal agressive intentions to imitators PRE-EMPTION exploit all available investment opportunities
Base competitive advantage in resources that are difficult to replicate
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competitive advantage |
COST ADVANTAGE ( similar products at lower price)
DIFFERENTIATION ADVANTAGE ( price premium for unique products) |
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Porters generic strategies |
By combining the two types of competitive advantage (cost & differentiation) with the firms choice of scope ( brand market vs. narrow market) |
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in reality, few firms are faced with such stark alternatives (porters) |
TRUE |
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the experience curve move down faster if... |
a firm can expand its output faster than its competitors (open up cost differential) |
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experience curve |
relationship between unit costs and comulative output (identify by BCG) |
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Association does not imply causation |
TRUE |
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probably market share and profitability are both outcomes os another source of competitive advantage |
TRUE |
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market share is linked to profitability |
TRUE ( confirmed byPIMS data) |
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cost of adquiring market share offset (compensa) the return to market share |
TRUE |
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economies of scale |
the point at wich most scale economies are exploited is the minimum efficient plant size (MEPS)
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MEPS |
relationship beteen unit cost and plant capacity |
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economies of scale sources |
1. technical input output relation 2. indisivility 3. specialization |
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relationship sales and expenditure |
high sales
low expenditure |
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drivers of cost advantage |
economies of scale economies of learning production techniques product design input costs capacity utilization residual efficiency
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economies of scale |
technicsl input output relationships
indivisibilities
specialization |
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economies of learning |
increase individual skills improved organizational routines |
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production techniques |
process innovation
re.engineing bss process |
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input costs |
location advantages ownership of low costs inputs nonunion labor bargaining power |
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capacity utilization |
ratio of variable costs fast and flexible capacity adjustment |
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residual efficiency |
organizational slak/x-inneficiency motivation and organizational culture managerial effectiveness
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cost analysis stages |
1. identify the main value chain activities 2. allocate total costs btween value chain activities 3. identify the costs drivers at each stage of the value chain 4. identify linkage btween activities 5. identify opportunities for cost reduction |
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differentiation analysis definition |
provide something unique that is valuable to the concumer simply offering a low price |
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differentiation analysis ways |
tangible (observable, related to products characteristics)
intangible (unobservable and subjectivecharacteristics) |
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differntiation is just the product |
FALSE.
differntiation is the whole relationshipe btween the supplier and the consumer. |
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differentiation |
concerns choices of how a firm distinguishes ifs offerings from its competitors.
HOW
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segmentation |
concerns choices of wich consumers, needs, localites a firms target.
WHERE
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does differentiation imply segmentation? |
not necesariamente
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broad scope differentiation |
what is COMMON between different consumers |
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focused differentiation |
what is DIFFERENT bteen consumers |
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analysis differentiation on the supply side |
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OJO DIAP 12 . |
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