Business-Level Strategy: Creating and Sustaining Competitive Advantages

Size: px
Start display at page:

Download "Business-Level Strategy: Creating and Sustaining Competitive Advantages"

Transcription

1 Business-Level Strategy: Creating and Sustaining Competitive Advantages Chapter Five McGraw-Hill/Irwin Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

2 Learning Objectives After reading this chapter, you should have a good understanding of: LO1 The central role of competitive advantage in the study of strategic management. LO2 The three generic strategies: overall cost leadership, differentiation, and focus. LO3 How the successful attainment of generic strategies can improve a firm s relative power vis-àvis the five forces that determine an industry s average profitability. LO4 The pitfalls managers must avoid in striving to attain generic strategies. 5-2

3 Learning Objectives (cont.) LO5 How firms can effectively combine the generic strategies of overall cost leadership and differentiation. LO6 How Internet-enabled business models are being used to improve strategic positioning. LO7 The importance of considering the industry life cycle to determine a firm s business-level strategy and its relative emphasis on functional area strategies and value-creating activities. LO8 The need for turnaround strategies that enable a firm to reposition its competitive position in an industry. 5-3

4 Three Generic Strategies 5-4

5 Three Generic Strategies Overall cost leadership Low-cost-position relative to a firm s peers Manage relationships throughout the entire value chain Differentiation Create products and/or services that are unique and valued Non-price attributes for which customers will pay a premium 5-5

6 Three Generic Strategies Focus strategy Narrow product lines, buyer segments, or targeted geographic markets Attain advantages either through differentiation or cost leadership 5-6

7 Example Companies pursuing an overall cost leadership strategy McDonalds Wal-Mart Companies pursuing a differentiation strategy Harley Davison Apple Companies pursuing a focus strategy Rolex Lamborghini 5-7

8 Competitive Advantage and Business Performance 5-8

9 Overall Cost Leadership Tight set of interrelated tactics that includes: Tight cost and overhead control Avoidance of marginal customer accounts Cost minimization in all activities in the firm s value chain 5-9

10 Overall Cost Leadership Experience curve refers to how business learns to lower costs as it gains experience with production processes with experience, unit costs of production decline as output increases in most industries 5-10

11 Overall Cost Leadership (Cont.) Parity on the basis of differentiation Permits a cost leader to translate cost advantages directly into higher profits than competitors Allows firm to earn above-average profits 5-11

12 Comparing Experience Curve Effects 5-12

13 Improving Competitive Position vis à vis the Five Forces An overall low-cost position Protects a firm against rivalry from competitors Protects a firm against powerful buyers Provides more flexibility to cope with demands from powerful suppliers for input cost increases Provides substantial entry barriers from economies of scale and cost advantages Puts the firm in a favorable position with respect to substitute products 5-13

14 Pitfalls of Overall Cost Leadership Strategies Too much focus on one or a few value-chain activities All rivals share a common input or raw material The strategy is imitated too easily A lack of parity on differentiation Erosion of cost advantages when the pricing information available to customers increases 5-14

15 Differentiation Prestige or brand image Technology Innovation Features Customer service Dealer network 5-15

16 Differentiation Firms may differentiate along several dimensions at once Successful differentiation requires integration with all parts of a firm s value chain An important aspect of differentiation is speed or quick response 5-16

17 Differentiation: Improving Competitive Position Creates higher entry barriers due to customer loyalty Provides higher margins that enable the firm to deal with supplier power Establishes customer loyalty and hence less threat from substitutes 5-17

18 Potential Pitfalls of Differentiation Strategies Uniqueness that is not valuable Too much differentiation Too high a price premium Differentiation that is easily imitated 5-18

19 QUESTION High product differentiation is generally accompanied by A. Higher market share B. Decreased emphasis on competition based on price C. Higher profit margins and lower costs D. Significant economies of scale 5-19

20 Focus Focus is based on the choice of a narrow competitive scope within an industry Firm selects a segment or group of segments (niche) and tailors its strategy to serve them Firm achieves competitive advantages by dedicating itself to these segments exclusively 5-20

21 Focus Cost focus firm strives to create a cost advantage in its target segment Differentiation focus firm seeks to differentiate in its target market 5-21

22 Focus: Improving Competitive Position Focus Creates barriers of either cost leadership or differentiation, or both Used to select niches that are least vulnerable to substitutes or where competitors are weakest 5-22

23 Pitfalls of Focus Strategies Erosion of cost advantages within the narrow segment Focused products and services still subject to competition from new entrants and from imitation Focusers can become too focused to satisfy buyer needs 5-23

24 Three Combination Approaches Automated and flexible manufacturing systems Exploiting the profit pool concept for competitive advantage Coordinating the extended value chain by way of information technology 5-24

25 U.S. Automobile Industry s Profit Pool 5-25

26 Combination Strategies: Improving Competitive Position Combination strategies High entry barriers Bargaining power over suppliers Reduces power of buyers (fewer competitors) Value position reduces threat from substitute products Reduces the possibility of head-to-head rivalry 5-26

27 Pitfalls of Combination Strategies Firms that fail to attain both strategies may end up with neither and become stuck in the middle Miscalculating sources of revenue and profit pools in the firm s industry 5-27

28 Internet Enabled Low Cost Leader Strategies Online bidding and order processing are eliminating the need for sales calls and are minimizing sales force expenses. Online purchase orders are making many transactions paperless, thus reducing the costs of procurement and paper. 5-28

29 Internet Enabled Differentiation Strategies Internet-based knowledge management systems that link all parts of the organization are shortening response times and accelerating organization learning. Quick online responses to service requests and rapid feedback to customer surveys and product promotions are enhancing marketing efforts. 5-29

30 Internet Enabled Focus Strategies Permission marketing techniques are focusing sales efforts on specific customers who opt to receive advertising notices. Niche portals that target specific groups are providing advertisers with access to viewers with specialized interests. 5-30

31 Industry Life Cycle Stages: Industry life cycle Strategic Implications refers to the stages of introduction, growth, maturity, and decline that occur over the life of an industry 5-31

32 Stages of the Industry Life Cycle 5-32

33 QUESTION The most likely time to pursue a harvest strategy is in a situation of A. High growth B. Strong competitive advantage C. Mergers and acquisitions D. Decline in the market life cycle 5-33

34 Industry Life Cycle Strategies In the Introduction Stage: Products are unfamiliar to consumers Market segments not well defined Product features not clearly specified Competition tends to be limited 5-34

35 Industry Life Cycle Strategies For the Introduction Stage: Develop product and get users to try it Generate exposure so product becomes standard 5-35

36 Industry Life Cycle Strategies The Growth Stage is: Characterized by strong increases in sales Attractive to potential competitors 5-36

37 Industry Life Cycle Strategies For the Growth Stage: Brand recognition Differentiated products Financial resources to support value-chain activities 5-37

38 Industry Life Cycle Strategies In the Maturity stage: Aggregate industry demand slows Market becomes saturated, few new adopters Direct competition becomes predominant Marginal competitors begin to exit 5-38

39 Industry Life Cycle Strategies For the Maturity Stage: Efficient manufacturing operations and process engineering Low costs (customers become price sensitive) 5-39

40 Industry Life Cycle Strategies In the Decline Stage: Industry sales and profits begin to fall Strategic options become dependent on the actions of rivals 5-40

41 Strategies in the Decline Stage For the Decline Stage Maintaining Exiting the market Harvesting Consolidation 5-41

42 Turnaround Strategies in the Life Cycle Turnaround strategy a strategy that reverses a firm s decline in performance and returns it to growth and profitability. Asset and cost surgery Selective product and market pruning Piecemeal productivity improvements 5-42

Chapter 2: Strategy Analysis

Chapter 2: Strategy Analysis Chapter 2: Strategy Analysis The Importance of Strategy Analysis Strategy drives the actions of an organization. Studying a firm s strategy provides: An understanding of what drives risks, profitability,

More information

GLOSSARY OF STRATEGIC MANAGEMENT TERMS

GLOSSARY OF STRATEGIC MANAGEMENT TERMS GLOSSARY OF STRATEGIC MANAGEMENT TERMS Acquisition: When one company, the acquirer, purchases and absorbs the operations of another, the acquired. Barriers to Entry/Exit: Economic or other characteristics

More information

Strategic Elements of Competitive Advantage. PPT 6 (First ppt slides after the mid-term) Assist. Prof. Dr. Ayşen Akyüz

Strategic Elements of Competitive Advantage. PPT 6 (First ppt slides after the mid-term) Assist. Prof. Dr. Ayşen Akyüz Strategic Elements of Competitive Advantage PPT 6 (First ppt slides after the mid-term) Assist. Prof. Dr. Ayşen Akyüz Industry Analysis: Forces Influencing Competition Industry group of firms that produce

More information

CALIFORNIA STATE UNIVERSITY, SACRAMENTO College of Business Administration. MGMT 182 Strategic Management EXAM #1 (200 POINTS)

CALIFORNIA STATE UNIVERSITY, SACRAMENTO College of Business Administration. MGMT 182 Strategic Management EXAM #1 (200 POINTS) Fall 2004 Dr. J. Merchant CALIFORNIA STATE UNIVERSITY, SACRAMENTO College of Business Administration MGMT 182 Strategic Management EXAM #1 (200 POINTS) MULTIPLE CHOICE Use Scantron 882 1. Which of the

More information

THE COMPETITIVE ADVANTAGE THEORY AS A GROWTH STRATEGY

THE COMPETITIVE ADVANTAGE THEORY AS A GROWTH STRATEGY THE COMPETITIVE ADVANTAGE THEORY AS A GROWTH STRATEGY Management Marketing - Tourism Ec. Ecaterina Nicoleta Ciurez Ph.D University of Craiova, Faculty of Economics and Business Administration, Craiova,

More information

SUPPLIERS INDUSTRY RIVALRY CUSTOMERS. Entrant Suppliers Buyers

SUPPLIERS INDUSTRY RIVALRY CUSTOMERS. Entrant Suppliers Buyers TECHNIQUE PORTER S COMPETITIVE ANALYSIS MODIFIED DETERMINANTS OF THE 5 FORCES OF PORTER S COMPETITIVE ANALYSIS*I NEW ENTRANTS SUPPLIERS INDUSTRY RIVALRY CUSTOMERS Notes SUBSTITUTES i) Need to keep in mind

More information

A primer in Entrepreneurship

A primer in Entrepreneurship Prof. Dr. Institute for Strategy and Business Economics Spring semester2008 Chapter 5: Industry and Competitor Analysis Table of Contents I. Industry Analysis II. IV. The Importance of Industry Versus

More information

ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT Chapter 4: Conducting a Feasibility Analysis and Designing a Business Model

ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT Chapter 4: Conducting a Feasibility Analysis and Designing a Business Model Copyright 2016 Pearson Education, Inc. Copyright 2016 Pearson Education Inc 1 4-1 Section 2: The Entrepreneurial Journey Begins 4 Conducting a Feasibility Analysis and Designing a Business Model Copyright

More information

UNIT 6 cont PRICING UNDER DIFFERENT MARKET STRUCTURES. Monopolistic Competition

UNIT 6 cont PRICING UNDER DIFFERENT MARKET STRUCTURES. Monopolistic Competition UNIT 6 cont PRICING UNDER DIFFERENT MARKET STRUCTURES Monopolistic Competition Market Structure Perfect Competition Pure Monopoly Monopolistic Competition Oligopoly Duopoly Monopoly The further right on

More information

A primer in Entrepreneurship

A primer in Entrepreneurship Prof. Dr. Institutefor Strategy and Business Economics Where we are: Step 1 Step 2 Developing Successful Business Ideas 2008 Prentice Hall Chapter 5: Industry and Competitor Analysis Table of Contents

More information

I. Identifying International Opportunities: Incentives to Use an International Strategy

I. Identifying International Opportunities: Incentives to Use an International Strategy Chapter 8- International Strategy I. Identifying International Opportunities: Incentives to Use an International Strategy International strategy: is a strategy through which the firm sells its goods or

More information

Availability of substitute products places limits on the prices market leaders can charge High prices induce buyers to switch to the substitute

Availability of substitute products places limits on the prices market leaders can charge High prices induce buyers to switch to the substitute Strategic Elements of Competitive Advantage Industry Analysis: Forces Influencing Competition Power of Suppliers Global Marketing Chapter 15 Power of Buyers Substitute Products Barriers to Entry Industry

More information

Using Information Systems to Achieve Competitive Advantage. Porter s Competitive Forces Model

Using Information Systems to Achieve Competitive Advantage. Porter s Competitive Forces Model Porter s Competitive Forces Model One way to understand competitive advantage Five competitive forces shape fate of firm 1. Traditional competitors Competitors in market space continuously devise new products,

More information

Planning, Strategy, and Competitive Advantage

Planning, Strategy, and Competitive Advantage Planning, Strategy, and Competitive Advantage Chapter 6 website Mark Gosling Office: D404 Phone: 5417 Learning Objectives LO1 Identify the three main steps of the planning process and explain the relationship

More information

Competitive Environment Five Forces

Competitive Environment Five Forces Competitive Environment Five Forces Porter s Five Forces Devised by Michael Porter A framework for analysing the nature of competition within an industry Every industry is different Size Structure Distribution

More information

CHAPTER 11 INTERNATIONAL STRATEGY AND ORGANIZATION

CHAPTER 11 INTERNATIONAL STRATEGY AND ORGANIZATION CHAPTER 11 INTERNATIONAL STRATEGY AND ORGANIZATION LEARNING OBJECTIVES: 1. Explain the stages of identification and analysis that precede strategy selection. 2. Identify the two international strategies

More information

INFO1400. Define an organization and compare the technical definition of organizations with the behavioral definition.

INFO1400. Define an organization and compare the technical definition of organizations with the behavioral definition. Chapter 3 INFO1400 Review Questions 1. Which features of organizations do managers need to know about to build and use information systems successfully? What is the impact of information systems on organizations?

More information

Short Answer Questions Chapter 1-6

Short Answer Questions Chapter 1-6 Short Answer Questions Chapter 1-6 Chapter One (1) 1. Briefly define each of the following terms: a. Strategy b. Sustainable competitive advantage c. Business model 2. Identify and briefly describe the

More information

BASES OF COMPETITIVE ADVANTAGE: THE `STRATEGY

BASES OF COMPETITIVE ADVANTAGE: THE `STRATEGY DO YOU HAVE A COMPETITIVE STRATEGY? Many managers talk about the importance of developing an effective competitive strategy. Indeed since Michael Porter wrote about this in 1980 it has become a central

More information

Case Interview - Frameworks

Case Interview - Frameworks WWW.MCONSULTINGPREP.COM Case Interview - Frameworks For more free and detailed materials on Management Consulting Preparation, visit www.mconsultingprep.com 2014 MConsultingPrep, Inc. COMPLETE FRAMEWORKS

More information

whatmakesagoodleader.com

whatmakesagoodleader.com Table of Contents (Click headings to Navigate) 1. Executive Summary...3 1.1. Preferred Option...3 1.2. Alternatively...3 2. Analysis...4 2.1. Vision / Mission Analysis...4 2.2. Objectives...4 2.3. Macro

More information

Strategic Positioning for the Farm Business: Options and Analysis Tools

Strategic Positioning for the Farm Business: Options and Analysis Tools Strategic Business Planning for Commercial Producers Identifying Strategies Strategic Positioning for the Farm Business: Options and Analysis Tools Michael Boehlje and Allan Gray Center for Food and Agricultural

More information

The Process of Formulating and Implementing Marketing Strategy. by Sebastian Salicru

The Process of Formulating and Implementing Marketing Strategy. by Sebastian Salicru The Process of Formulating and Implementing Marketing Strategy by Sebastian Salicru The Process of Formulating and Implementing Marketing Strategy External environment Corporate objectives & strategy Business-level

More information

Competitive Environment - Five Forces

Competitive Environment - Five Forces Competitive Environment - Five Forces The nature of industry competition and profits Every market or industry is different. Take any selection of industries and you should be able to find differences between

More information

Achieving Competitive Advantage with Information Systems

Achieving Competitive Advantage with Information Systems Chapter 3 Achieving Competitive Advantage with Information Systems 3.1 Copyright 2011 Pearson Education, Inc. STUDENT LEARNING OBJECTIVES How does Porter s competitive forces model help companies develop

More information

Analyzing an Industry s Structure. Game-1303 Intro to Game Dev Sara R. Farr

Analyzing an Industry s Structure. Game-1303 Intro to Game Dev Sara R. Farr Analyzing an Industry s Structure Game-1303 Intro to Game Dev Sara R. Farr Game Industry Segments Some of the Game Industry Segments are: Console (Hardware or Software) PC Handheld Mobile Casual Online

More information

3. Market Analysis. 3. Market Analysis. Student edition

3. Market Analysis. 3. Market Analysis. Student edition 3. Market Analysis Student edition 1. Understanding Market Analysis 2. Market Segmentation 3. External Analysis 4. Internal Analysis 5. Position the Product Review Self-Assessment questions References

More information

Portfolio Management

Portfolio Management Portfolio Management Portfolio Management It is top management responsibility that requires the assessment of strengths and weaknesses of the current portfolio of businesses, in order to define the priorities

More information

Course 103402 MIS. Information Systems, Organizations and Strategies

Course 103402 MIS. Information Systems, Organizations and Strategies Oman College of Management and Technology Course 103402 MIS Topic 2 Information Systems, Organizations and Strategies CS/MIS Department Organizations and Information Systems Information technology and

More information

Achieving Competitive Advantage with Information Systems

Achieving Competitive Advantage with Information Systems Achieving Competitive Advantage with Information Systems STUDENT LEARNING OBJECTIVES How does Porter s competitive forces model help companies develop competitive strategies using information systems?

More information

Competitive Advantage

Competitive Advantage Competitive Advantage When a firm sustains profits that exceed the average for its industry, the firm is said to possess a competitive advantage over its rivals. The goal of much of business strategy is

More information

Information Systems, Organizations, and Strategy

Information Systems, Organizations, and Strategy Information Systems, Organizations, and Strategy VIDEO CASES Chapter 3 Case 1: National Basketball Association: Competing on Global Delivery with Akamai OS Streaming Case 2: IT and Geo-Mapping Help a Small

More information

Information Systems, Organizations, and Strategy

Information Systems, Organizations, and Strategy Chapter 3 Information Systems, Organizations, and Strategy VIDEO CASES Case 1: National Basketball Association: Competing on Global Delivery with Akamai OS Streaming Case 2: IT and Geo-Mapping Help a Small

More information

Chapter 2: Analyzing a Dealership s Financial Statements & Operations

Chapter 2: Analyzing a Dealership s Financial Statements & Operations Chapter 2: Analyzing a Dealership s Financial Statements & Operations To analyze a dealership s operations, a close look must be taken at the day to day operations as well as examining the dealership s

More information

E3- Strategic Management Practice Test Answers

E3- Strategic Management Practice Test Answers E3- Strategic Management Practice Test Answers The Practice Test can be viewed at http://www.pearsonvue.com/cima/practiceexams/ These answers have been provided by CIMA for information purposes only. In

More information

Learning Objectives. Chapter 7. Characteristics of Monopolistic Competition. Monopolistic Competition. In Between the Extremes: Imperfect Competition

Learning Objectives. Chapter 7. Characteristics of Monopolistic Competition. Monopolistic Competition. In Between the Extremes: Imperfect Competition Chapter 7 In Between the Extremes: Imperfect Competition Learning Objectives List the five conditions that must be met for the existence of monopolistic competition. Describe the methods that firms can

More information

Porter s 5 forces model

Porter s 5 forces model Porter Competitive Model? Porter s 5 forces model What is it? q A model to help understand the competitive environment in which a company operates. What are the 5 forces? q Intra-Industry Competition q

More information

STRATEGIC ANALYSIS - WEEK 6. Game-1303 Intro to Game Dev Sara R. Farr

STRATEGIC ANALYSIS - WEEK 6. Game-1303 Intro to Game Dev Sara R. Farr STRATEGIC ANALYSIS - WEEK 6 Game-1303 Intro to Game Dev Sara R. Farr INDUSTRY ANALYSIS! FROM THINKING STRATEGICALLY TO CHOOSING A STRATEGY! Thinking Strategically about External Environment Form a Strategic

More information

Customer Relationship Management and Five Forces Analysis in Nonprofit Organization in Oman

Customer Relationship Management and Five Forces Analysis in Nonprofit Organization in Oman International Journal of Scientific and Research Publications, Volume 6, Issue 1, January 2016 436 Customer Relationship Management and Five Forces Analysis in Nonprofit Organization in Oman Ahmed Al-Arafati

More information

Information Systems, Organizations, and Strategy

Information Systems, Organizations, and Strategy Management Chapters 3 (Laudon Information and Laudon, 2010) Systems Information Systems, Organizations, and Strategy Lecturer: Richard Boateng, PhD. Lecturer in Information Systems, University of Ghana

More information

Professor: Dr. Mary Flannery Teaching Assistant: Jia-Yuh Chen ECON 136 Business Strategy February 27, 2006

Professor: Dr. Mary Flannery Teaching Assistant: Jia-Yuh Chen ECON 136 Business Strategy February 27, 2006 CASE STUDY Professor: Dr. Mary Flannery Teaching Assistant: Jia-Yuh Chen ECON 136 Business Strategy February 27, 2006 INDUSTRY ANALYSIS The retail industry is dominated by few retail giants, with Wal-Mart

More information

Fundamentals of Information Systems, Fifth Edition. Chapter 1 An Introduction to Information Systems in Organizations

Fundamentals of Information Systems, Fifth Edition. Chapter 1 An Introduction to Information Systems in Organizations Fundamentals of Information Systems, Fifth Edition Chapter 1 An Introduction to Information Systems in Organizations 1 Principles and Learning Objectives The value of information is directly linked to

More information

MICHAEL PORTER S 5 FORCES MODEL AND FUTURE TRENDS OF FMCG INDUSTRY

MICHAEL PORTER S 5 FORCES MODEL AND FUTURE TRENDS OF FMCG INDUSTRY MICHAEL PORTER S 5 FORCES MODEL AND FUTURE TRENDS OF FMCG INDUSTRY \ 1. Barriers to Entry : - Entry of new players in an industry raises the level of competition, thereby reducing its attractiveness. The

More information

Organization & Strategy Tools & Concepts II

Organization & Strategy Tools & Concepts II Tools & Concepts II February 2003 Contents 1 Introduction to the Strategic Process 2 Creating Competitive Advantage 3 Competitive Positioning 4 Sustaining Competitive Advantage 5 Introduction to financial

More information

Session 1: Industry Analysis and Strategy ID

Session 1: Industry Analysis and Strategy ID The University of Chicago Graduate School of Business Crown Cork and Seal: What happened? (1) Session 1: Industry Analysis and Strategy ID Major acquisitions: 1990: Continental Can Canada for $330 M Continental

More information

Information Systems and Business Strategy. Chapter 3 (9E) Ch 3 & Questions

Information Systems and Business Strategy. Chapter 3 (9E) Ch 3 & Questions Information Systems and Business Strategy Chapter 3 (9E) 10/7/2007 Laudon & Laudon 1 Ch 3 & Questions 1. What are information systems? Explain the nature and interaction of technology, people, and organizational

More information

Business-to-Business marketing

Business-to-Business marketing Business-to-Business marketing Business marketing strategy Antti Sihvonen Where did (marketing) management and strategy come from? Industrialization Increasing bureaucracy Joint-stock companies Notion

More information

Masters in Engineering and Management of Technology Masters in engineering Design Introduction to Entrepreneurship and New Venture Creation

Masters in Engineering and Management of Technology Masters in engineering Design Introduction to Entrepreneurship and New Venture Creation Masters in Engineering and Management of Technology Masters in engineering Design Introduction to Entrepreneurship and New Venture Creation Rui Baptista The Structural Analysis of Industries What is Strategy?

More information

OPPORTUNITY ASSESSMENT AND BUSINESS MODELING

OPPORTUNITY ASSESSMENT AND BUSINESS MODELING The University of Texas Pan American Technology Entrepreneurship Boot Camp OPPORTUNITY ASSESSMENT AND BUSINESS MODELING Opportunity knocks many times but which door do you open? By Jan Smolarski, PhD Opportunities

More information

Conducting a Feasibility Analysis and Crafting a Winning Business Plan

Conducting a Feasibility Analysis and Crafting a Winning Business Plan CHAPTER 4 Conducting a Feasibility Analysis and Crafting a Winning Business Plan Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall Feasibility Analysis Entrepreneurs do not lack creative

More information

APPENDIX Business Description Current Position of Company Financing Request

APPENDIX Business Description Current Position of Company Financing Request APPENDIX SAMPLE BUSINESS PLAN Introduction Business Description A brief description of your business; product type, industry and target market and competitive position as compared to your rivals Current

More information

Case Analysis Framework - Strategic Management Ian Lee, Ph.D Carleton University Ottawa, Canada ianlee@ibm.net

Case Analysis Framework - Strategic Management Ian Lee, Ph.D Carleton University Ottawa, Canada ianlee@ibm.net Case Analysis Framework - Strategic Management Ian Lee, Ph.D Carleton University Ottawa, Canada ianlee@ibm.net Stratrategic Management National/Macro Context Industry Context Company Resources, Capabilities,

More information

Netflix Strategic Analysis

Netflix Strategic Analysis XMBA 2013 Netflix Strategic Analysis Global Strategic Thinking Joey M. Reed, XMBA 2013 4/17/2013 EXECUTIVE SUMMARY In 1999, Reed Hastings launched an online movie rental service called, Netflix. The company

More information

Chapter 8 Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

Chapter 8 Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets Managerial Economics & Business Strategy Chapter 8 Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets McGraw-Hill/Irwin Copyright 2010 by the McGraw-Hill Companies, Inc. All

More information

SAMPLE COURSE OUTLINE ECONOMICS GENERAL YEAR 11

SAMPLE COURSE OUTLINE ECONOMICS GENERAL YEAR 11 SAMPLE COURSE OUTLINE ECONOMICS GENERAL YEAR 11 Copyright School Curriculum and Standards Authority, 2014 This document apart from any third party copyright material contained in it may be freely copied,

More information

PORTER S STRATEGY, VALUE CHAINS AND COMPETITIVE ADVANTAGE

PORTER S STRATEGY, VALUE CHAINS AND COMPETITIVE ADVANTAGE PORTER S STRATEGY, VALUE CHAINS AND COMPETITIVE ADVANTAGE Vasile Voicu Pantea, Luiela Magdalena Csorba, Olga Irina Maxim University Aurel Vlaicu of Arad Abstract: A strategy means the plans and actions

More information

Service Strategy. Learning Objectives. What Is Strategy? MGS 8770 Service Operations Management

Service Strategy. Learning Objectives. What Is Strategy? MGS 8770 Service Operations Management MGS 8770 Service Operations Management Service Strategy Learning Objectives Describe how a service competes using the three generic service strategies Discuss the positioning map Formulate a strategic

More information

Learning Objectives: Quick answer key: Question # Multiple Choice True/False

Learning Objectives: Quick answer key: Question # Multiple Choice True/False 0 Learning Objectives: 11.1 Describe the advantages and disadvantages of the most common forms of business ownership. 11.2 Identify the stakeholders of a business and describe why they are important. 11.3

More information

Chapter. Developing Business / IT Strategies. Copyright 2008, The McGraw-Hill Companies, Inc. All rights reserved.

Chapter. Developing Business / IT Strategies. Copyright 2008, The McGraw-Hill Companies, Inc. All rights reserved. Chapter 6 Developing Business / IT Strategies McGraw-Hill/Irwin Copyright 2008, The McGraw-Hill Companies, Inc. All rights reserved. 2-2 Learning Objectives Discuss the role of planning in the business

More information

BUS 478: Seminar on Business Strategy SYNOPSIS PROJECT: AMAZON.COM. Group G. Group Members: Tristan Landrecht. Jessica Zhang. John Chen.

BUS 478: Seminar on Business Strategy SYNOPSIS PROJECT: AMAZON.COM. Group G. Group Members: Tristan Landrecht. Jessica Zhang. John Chen. BUS 478: Seminar on Business Strategy SYNOPSIS PROJECT: AMAZON.COM Group G Group Members: Tristan Landrecht Jessica Zhang John Chen Jin Can Chen Jae Kim 0 Company Background When Amazon was founded in

More information

Fundamentals of Information Systems, Seventh Edition

Fundamentals of Information Systems, Seventh Edition Chapter 1 An Introduction to Information Systems in Organizations 1 Principles and Learning Objectives The value of information is directly linked to how it helps decision makers achieve the organization

More information

Marketing Management

Marketing Management Marketing Management Theocharis Katranis Fall Semester 2014 1 Today s Lecture 1. We will discuss the competitive forces in a market 2. We will identify and analyse competitors 3. We will elaborate different

More information

Coca-Cola Case Analyses.

Coca-Cola Case Analyses. <Student Name> <Name and Section # of course> <Instructor Name> <Date> Running Head: COCA-COLA CASE Coca-Cola Case Analyses Coca-Cola Case 2 Coca-Cola Case Analyses This paper is about the company Coca-Cola

More information

Timing of Hiring a Turnaround Management Firm. Turnarounds & Crisis Management Solutions to Complex Business Problems

Timing of Hiring a Turnaround Management Firm. Turnarounds & Crisis Management Solutions to Complex Business Problems Solutions to Complex Business Problems Atlanta Chapter, Georgia Society of CPA s October 21, 2010 by Mark D. Kaplan, Principal Restructuring Profit Advisors, LLC 400 Trowgate Lane Atlanta, Georgia 30350

More information

J.P. MORGAN CHASE & CO.: THE CREDIT CARD SEGMENT OF

J.P. MORGAN CHASE & CO.: THE CREDIT CARD SEGMENT OF SENEM ACET COSKUN BUS 9200 - FALL 2008 - MIDTERM J.P. MORGAN CHASE & CO.: THE CREDIT CARD SEGMENT OF THE FINANCIAL SERVICES INDUSTRY I-Executive Summary Consumers are increasingly using plastic cards and

More information

Alexander Nikov. 3. Information Systems and Organisational Issues. Learning Objectives. Verizon or AT&T: Which Company Has the Best Digital Strategy?

Alexander Nikov. 3. Information Systems and Organisational Issues. Learning Objectives. Verizon or AT&T: Which Company Has the Best Digital Strategy? INFO 1500 Introduction to IT Fundamentals Learning Objectives 3. Information Systems and Organisational Issues 1. Identify and describe important features of organizations that managers need to know about

More information

Lesson 1: Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Lesson 1: Strategy, Balanced Scorecard, and Strategic Profitability Analysis Lesson 1: Strategy, Balanced Scorecard, and Strategic Profitability Analysis Lesson Overview, Readings, and Objectives Lesson 1 discusses corporate strategy and the three generic competitive strategies

More information

Chapter 6 Competitive Markets

Chapter 6 Competitive Markets Chapter 6 Competitive Markets After reading Chapter 6, COMPETITIVE MARKETS, you should be able to: List and explain the characteristics of Perfect Competition and Monopolistic Competition Explain why a

More information

Husky. Strategic Planning: Husky Injection Molding Systems. October 22, Take 2 Consulting Group

Husky. Strategic Planning: Husky Injection Molding Systems. October 22, Take 2 Consulting Group Husky Strategic Planning: Husky Injection Molding Systems October 22, 2012 Take 2 Consulting Group Agenda 1 2 3 Summary of Framework Statement of Intent Presentation of Alternatives 4 5 6 Recommended Action

More information

Key Terms. DECA Ryerson 2015-16 Case Guides Business to Business Marketing

Key Terms. DECA Ryerson 2015-16 Case Guides Business to Business Marketing Key Terms Acquisition Costs: The incremental costs involved in obtaining a new customer. Agent: A business entity that negotiates, purchases, and/or sells, but does not take title to the goods. Benchmark:

More information

Market Segmentation, Targeting, and Positioning. Leonard Walletzký

Market Segmentation, Targeting, and Positioning. Leonard Walletzký Market Segmentation, Targeting, and Positioning Leonard Walletzký 5C STP Marketing Mix Marketing framework Customer Company Context Collaborators Competitors Segmentation Targeting Positioning 4P 7P 4C

More information

Perfect Competition. Chapter 7 Section Main Menu

Perfect Competition. Chapter 7 Section Main Menu Perfect Competition What conditions must exist for perfect competition? What are barriers to entry and how do they affect the marketplace? What are prices and output like in a perfectly competitive market?

More information

Chapter 7: Market Structure in Government and Nonprofit Industries. Soft Drinks. What is a Market? Do NFPs Compete? Some NFPs Compete Directly

Chapter 7: Market Structure in Government and Nonprofit Industries. Soft Drinks. What is a Market? Do NFPs Compete? Some NFPs Compete Directly Chapter 7: Market Structure in Government and Nonprofit Industries Soft Drinks HTTP:/www.economics.emory.edu/Working_Pa pers/wp/2008wp/frisvold_08_08_paper.pdf What is a Market? A market is a process in

More information

Strategic Management and Competitive Advantage

Strategic Management and Competitive Advantage EDITION 3 Strategic Management and Competitive Advantage CONCEPTS AND CASES Jay B. Barney The Ohio State University j William S.Hesterly The University of Utah Prentice Hall Boston Columbus Indianapolis

More information

Module 7 8/12/2010. What types of strategies are used by organizations? How are strategies formulated and

Module 7 8/12/2010. What types of strategies are used by organizations? How are strategies formulated and Module 7 Module 7 Strategy and Strategic Management What types of strategies are used by organizations? How are strategies formulated and implemented? 7.1 Types of organizational strategies Comprehensive

More information

Strategy & the firm. Value creation. Value creation

Strategy & the firm. Value creation. Value creation 1 Strategy & the firm Strategy: actions that managers must take to attain the goals of the firm Main goal usually to maximize long- term profit (П)( Profitability defined by return on sales or return on

More information

Lucintel. http://www.marketresearch.com/lucintel-v2747/ Publisher Sample

Lucintel. http://www.marketresearch.com/lucintel-v2747/ Publisher Sample Lucintel http://www.marketresearch.com/lucintel-v2747/ Publisher Sample Phone: 800.298.5699 (US) or +1.240.747.3093 or +1.240.747.3093 (Int'l) Hours: Monday - Thursday: 5:30am - 6:30pm EST Fridays: 5:30am

More information

Retail Marketing Strategy

Retail Marketing Strategy Chapter 5 Retail Marketing Strategy PPT McGraw-Hill/Irwin 5-1 Levy/Weitz: Retailing Management, 5/e Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Elements in Retail Strategy Target

More information

THE POLISH BUSINESS ENVIRONMENT FOR LANGUAGE SERVICE PROVIDERS IN VIEW OF THE PORTER S FIVE FORCES MODEL

THE POLISH BUSINESS ENVIRONMENT FOR LANGUAGE SERVICE PROVIDERS IN VIEW OF THE PORTER S FIVE FORCES MODEL International Journal of Emerging and Transition Economies Vol. 5, No. 1-2, 2012, 57-64 THE POLISH BUSINESS ENVIRONMENT FOR LANGUAGE SERVICE PROVIDERS IN VIEW OF THE PORTER S FIVE FORCES MODEL Monika Kowalska

More information

BANGLADESH COST ACCOUNTING STANDARDS BCAS Strategic Cost Management

BANGLADESH COST ACCOUNTING STANDARDS BCAS Strategic Cost Management BANGLADESH COST ACCOUNTING STANDARDS BCAS - 23 Strategic Cost Management 23.1 Introduction BACS 23: Strategic Cost Management Strategic cost management (SCM) deals with measuring and managing costs and

More information

Chapter by Prentice Hall

Chapter by Prentice Hall Chapter 3 Achieving Competitive Advantage with Information Systems 3.1 2007 by Prentice Hall STUDENT LEARNING OBJECTIVES How does Porter s competitive forces model help companies develop competitive strategies

More information

Shaping. Business Strategy. Through. Competitive Intelligence. Strategic Use of. Intellectual Property Information

Shaping. Business Strategy. Through. Competitive Intelligence. Strategic Use of. Intellectual Property Information Shaping This project is funded by the EU Business Strategy Through Competitive Intelligence Strategic Use of Intellectual Property Information Strategic Planning Process Business Strategy Definition This

More information

Small Business Strategies. Chapter 07. Imitation with a Twist. Copyright 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

Small Business Strategies. Chapter 07. Imitation with a Twist. Copyright 2011 by the McGraw-Hill Companies, Inc. All rights reserved. Small Business Strategies Imitation with a Twist Chapter 07 McGraw-Hill/Irwin Copyright 2011 by the McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives LO1 Learn the decisions needed to

More information

Application of Porter s Five Forces Model Paper

Application of Porter s Five Forces Model Paper Application of Porter s Five Forces Model Paper Example 1: Fast Casual Industry The Porter s Five Forces Model illustrates how the competitive landscape in an industry is impacted by five prominent forces.

More information

1 of 18 10/19/ :51 PM

1 of 18 10/19/ :51 PM 1 of 18 10/19/2013 12:51 PM Which of the following is true about a competitive market supply curve? It is horizontal. It is downward-sloping to the right. It is the sum of the marginal cost curves of all

More information

CUSTOMER SERVICE THE IMPORTANT GOAL OF LOGISTICS

CUSTOMER SERVICE THE IMPORTANT GOAL OF LOGISTICS CUSTOMER SERVICE THE IMPORTANT GOAL OF LOGISTICS Associate Professor Adriana SCRIOŞTEANU, PhD University of Craiova Faculty of Economics Craiova, Romania Professor Daniela POPESCU, PhD University of Craiova

More information

INDUSTRY REPORT ON AIRBAG INDUSTRY

INDUSTRY REPORT ON AIRBAG INDUSTRY INDUSTRY REPORT ON AIRBAG INDUSTRY AIRBAG MARKET GROWTH DRIVERS: Key drivers for airbags industry are: Federal regulation-first and foremost Public awareness General increase in concerns for safety Development

More information

Economics Chapter 7 Review

Economics Chapter 7 Review Name: Class: Date: ID: A Economics Chapter 7 Review Matching a. perfect competition e. imperfect competition b. efficiency f. price and output c. start-up costs g. technological barrier d. commodity h.

More information

Chapter 1 - Introduction to Management Accounting

Chapter 1 - Introduction to Management Accounting Chapter 1 - Introduction to Management Accounting MULTIPLE CHOICE 1. is devoted to providing information for external users. a. Management accounting b. Financial accounting c. Internal accounting d. Cost

More information

Existing Analytical Market Assessment Tools - Definitions

Existing Analytical Market Assessment Tools - Definitions Existing Analytical Market Assessment Tools - Definitions November, 2003 This list of market assessment tools was prepared by Development Alternatives Inc. (DAI) as an internal working document to support

More information

THE IMPACT OF THE INTERNET ON ORGANIZATIONS EXTERNAL MARKETING ENVIRONMENT

THE IMPACT OF THE INTERNET ON ORGANIZATIONS EXTERNAL MARKETING ENVIRONMENT THE IMPACT OF THE INTERNET ON ORGANIZATIONS EXTERNAL MARKETING ENVIRONMENT Hajnalka, KÁNYA Universitatea Creştină Partium Oradea e-mail: kanyahajnalka@yahoo.com Keywords: Internet, marketing environment

More information

Essentials of Strategic Management

Essentials of Strategic Management Essentials of Strategic Management The Quest for Competitive Advantage 2nd Edition John E. Gamble University of South Alabama Arthur A. Thompson, Jr. The University of Alabama McGraw-Hill Irwin Table of

More information

Chapter 2 Strategy and Technology: Concepts and Frameworks for Understanding What Separates Winners from Losers

Chapter 2 Strategy and Technology: Concepts and Frameworks for Understanding What Separates Winners from Losers Chapter 2 Strategy and Technology: Concepts and Frameworks for Understanding What Separates Winners from Losers 2-1 The Danger of Relying on Technology Firms strive for sustainable competitive advantage,

More information

The future of M&A in telecom

The future of M&A in telecom The future of M&A in telecom McKinsey & Company s analysis of past telecom mergers and acquisitions provides new insights into where the industry is likely headed. By Jean-Christophe Lebraud and Peter

More information

Conducting a Feasibility Study and Crafting a Winning Business Plan

Conducting a Feasibility Study and Crafting a Winning Business Plan Conducting a Feasibility Study and Crafting a Winning Business Plan 1 Feasibility Analysis Entrepreneurs do not lack creative ideas, but Is a particular idea a viable foundation for creating a successful

More information

'LJL7D/ 0(',$ 0JPW Digital Strategies tisdag den 29 september 2009

'LJL7D/ 0(',$ 0JPW Digital Strategies tisdag den 29 september 2009 Digital Strategies The beginning of the end Today - Internet & Strategy Tuesday 29th - Management and ethics Wednesday (30th) - Seminar presentations Next Wednesday (7th)- Seminar presentations Thursday

More information

MODULE Strategy Formulation : An Overview

MODULE Strategy Formulation : An Overview MODULE 9 9.1. Strategy Formulation : An Overview The corporate world is in the process of a global transformation. Mergers, acquisitions, outsourcing and downsizing are becoming common word everywhere.

More information

Estonian Air. Estonian Air. Business-Level Strategic Analysis: October 15, Take 2 Consulting Group

Estonian Air. Estonian Air. Business-Level Strategic Analysis: October 15, Take 2 Consulting Group Estonian Air Business-Level Strategic Analysis: Estonian Air October 15, 2012 Take 2 Consulting Group Agenda 1 2 3 Problem Statement Summary of Analysis Presentation of Alternatives 4 5 6 Recommended Action

More information