10/1 Class Flashcards
firms marketing skills and teamwork as well as cooperation among managers are
capabilities
harlequin case problems
problem was a mature industry
what resources could harlequin use?
.
if a firm controls a resource that is relatively scarce it will generate what types of returns
above average
In the value chain which is a primary activity?
.
primary vs secondary activity
primary: assembling cars, after sales service
secondary: human resources, strategic planning
primary
directly contributes profit
ex: purchasing, inventory holding, materials handling, production, warehousing and distribution, sales and marketing, dealer support and customer service
secondary
doesn’t contribute directly to profit loss
rivalry
measured by if there are lots of firms there are more people trying to beat each other
cost leaderships strategic choices
the cost leader does not try to be the industry innovator
we offer cheap products
when does a low cost strategy work?
price competition is vigorous
large market size
product is standardized or readily available from many firms
there are a few ways to achieve differentiation that have value to buyers
buyers incur low switching costs
sources of costs advantage
economies of scale
learning curve economies
differential low-cost access to productive inputs
technological advances independent of Scale
Policy Choices
economies of scale & cost of production
the sweet spot of production
advantages of volume (EOS)
Specialized Machinery cost of plant and equipment employee specialization overhead disceconomies can occur
jet blue
should utilize the E190 they are in an industry of growth
