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12 Cards in this Set
- Front
- Back
Sustainable Competitive Advantage |
-competitive advantage that other companies have tried unsuccessfully to duplicate |
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sustainable competitive advantage requirements (4 criterias) |
1. valuable resources: allows companies to improve efficiency and effectiveness (apples vast product lines) 2. rare resources: resources that are not controlled or possessed by many competing firms (apples ability to configure their resources into an elegant highly desired designs) 3. imperfectly imitable resources: resources that are impossible or extremely costly to duplicate (apples cloud design) 4. non-substitutable resources: no other resources can replace them and produce similar value or competitive advantage (apples itunes software VS spotifys market share i.e apple wins) |
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SWOT analysis/window of opportunity |
-Strengths and Weaknesses="internal", thus you have control over -Opportunities and Threats="external", thus you don't have control over |
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choosing strategic alternatives (3) |
1. Risk-avoiding strategy: protect an existing competitive advantage 2. Risk-seeking strategy: extend or create a sustainable competitive advantage 3. Strategic Reference Points: targets used by managers to determine if the firm has developed the core competencies it needs to achieve a sustainable competitive advantage |
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3 Levels of Strategy |
1. Corporate level strategies: "what business or businesses are we in, or should we be in?" -what business are we in -how should we compete in that industry -who are our competitors, and how should we respond to them 2. Industry level strategies: addresses the question "how should we compete in the industry?" 3. Firm Level strategies: addresses the question "how should we compete against a particular firm?" |
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BCG (boston consulting group) matrix |
"PORTFOLIO APPROACH" -question marks: companies with small share of a fast growing market -stars: companies with a large share of a fast growing market -cash cows: companies with a large share of a slow growing market -dogs: companies with a small share of a slow growing market *look at matrix in powerpoint to further understand |
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Grand Strategies |
1. growth strategy: focuses on increasing profits, revenues, market share, or number of places to do business 2. stability strategy: focuses on improving the way the company sells the same products or services to the same customers 3. retrenchment strategy: focuses on turning around a very poor company performance by shrinking the size or scope of the business |
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Diversification and Risk Relationships |
-diversification: strategy for reducing risk by buying a variety of items (other businesses) so that the failure of one business doesn't affect the entire "portfolio" -portfolio strategy: buying into various businesses or product lines -acquisitions: buying more and more companies (more legs to the stool) -unrelated diversification: creating or acquiring companies in completely unrelated businesses
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Porter's competitive strategies |
1. Focus: concentrate attention on a specific segment of an overall market (and choosing on being unique or cost effective) 2. Differentiation: attempt to develop goods or services that are perceived industrywide as being unique (if you are unique you have pricing power) 3. Cost Leadership: aggressively pursue operating efficiencies so that an organization is the low-cost producer in it's industry (Wal-Mart) |
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Porters Competitive Forces |
1. Bargaining Power of Suppliers: influence that suppliers have on prices (few suppliers = more pricing power) 2. Bargaining Power of Buyers: buyers dictating what they are willing to pay (less buyers = more pricing power) 3. Threat Of Substitutes: other companies with similar products (more competitive = lesser amounts of pricing powers) 4. Threat of New Entrants: how easy or hard it is to enter into an industry 5. Character of Rivalry: rivalry between two firms in one industry (Coke Vs. Pepsi) |
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Firm-Level strategies |
-market commonality: primary competitors (theaters)(both in the entertainment industry) -resource similarity: how similar customer base is along with products (Wendys and McDanks) & and similar those resources they have -attack: competitive move designed to reduce a rival's market share or profits -response: competitive countermove, prompted by a rival's attack, that is designed to defend or improve a company's market share or profits |
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Strategy Implementation |
1. Mirror your competitor's move 2. Respond along a different dimension from your competitors move or attack |