Lecture Strategic Management: Lesson 3 - Crafting a strategy

Lesson 3 – Crafting a strategy has outline 3.1 The five generic competitive strategies, 3.2 Supplementing the chosen competitive strategy – other importatn strategy choices, 3.3 Strategies for competing in international markets, 3.4 corporate strategy: diversification and the multibusiness company.
Nội dung trích xuất từ tài liệu:
Lecture Strategic Management: Lesson 3 - Crafting a strategy LESSON 3 – CRAFTING A STRATEGYMcGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. LESSON 3 - OUTLINEv 3.1: THE FIVE GENERIC COMPETITIVE STRATEGIESv 3.2: SUPPLEMENTING THE CHOSEN COMPETITIVE STRATEGY – OTHER IMPORTATN STRATEGY CHOICESv 3.3: STRATEGIES FOR COMPETING IN INTERNATIONAL MARKETSv 3.4: CORPORATE STRATEGY: DIVERSIFICATION AND THE MULTIBUSINESS COMPANY 3-2LO1 Gain an understanding of how each of the five generic competitive strategies go about building competitive advantage and delivering superior value to customers.LO2 Recognize why some generic strategies work better in certain kinds of industry and competitive conditions than others.LO3 Recognize the required conditions for delivering superior value to customers through the use of a hybrid of low-cost provider and differentiation strategies. 3-3 (cont’d)LO4 Learn whether and when to pursue offensive or defensive strategic moves to improve a company’s market position.LO5 Recognize when being a first mover or a fast follower or a late mover can lead to competitive advantage.LO6 Learn the advantages and disadvantages of extending a company’s scope of operations via vertical integration, strategic alliances, collaborative partnerships and M&ALO7 Develop an understanding of the primary reasons companies choose to compete in international markets 3-4 (cont’d)LO8 Learn why and how differing market conditions across countries influence a company’s strategy choices in international markets.LO9 Gain familiarity with the five general modes of entry into foreign markets.LO10 Learn the three main options for tailoring a company’s international strategy to cross- country differences in market conditions and buyer preferences.LO11 Understand how multinational companies are able to use international operations to improve overall competitiveness 3-5 (cont’d)LO12 Understand when and how diversifying into multiple businesses can enhance shareholder value.LO13 Gain command of the analytical tools for evaluating a company’s diversification strategy.LO14 Understand a diversified company’s four main corporate strategy options for solidifying its diversification strategy and improving company performance. 3-6 3.1. THE FIVE GENERIC COMPETITIVE STRATEGIESMcGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.3.1.1. COMPETITIVE STRATEGIES AND MARKET POSITIONING 3.1.1. COMPETITIVE STRATEGIES AND MARKET POSITIONINGu Competitive Strategy Ø Deals exclusively with management’s game plan for competing successfully and securing a competitive advantage over rivals Ø Represents the firm’s specific efforts to provide superior value to customers by offering: v An equally good product at a lower price v A superiorproduct with unique features perceived as worth paying more for v An attractive overall mix of price, features, quality, service, and other appealing attributes 3-9  Core Concept A competitive strategy concerns thespecifics of management’s game planfor competing successfully andsecuring a competitive advantage overrivals in the marketplace. 3-10FIGURE 5.1 The Five Generic Competitive Strategies 3-11The Five Generic Competitive Strategies Low-cost Striving to achieve lower overall costs than rivals and appealing to a provider broad spectrum of customers, usually by underpricing rivals Broad Seeking to differentiate the firm’s product or service from rivals’ in differentiation ways that will appeal to a broad spectrum of buyers Concentrating on a narrow buyer segment (or market niche) and Focused outcompeting rivals by having lower costs than rivals and thus being low-cost able to serve niche members at a lower price ...