Advanced readings

Question 1

What are two business level approaches to generic strategies? (cost leadership, and differentiation)

Answer 1

Cost leadership and differentiation

Question 2

There are two approaches for cost leadership, and differentiation.

Answer 2

Taxonomical (says: either-or. two alternatives)
Dimensional (Both-and. approach, two dimensions of strategic positioning

Question 3

Arguments for strategic purity

Answer 3

Stuck in the middle (porter)
Trade offs between the two mutually exclusive value disciplines.

Question 4

What does hybrid means

Answer 4

Hybrid: “in the middle” strategies are vulnerable
Hybrid strategies are complex
> difficult to set priorities
>Matrix structures –> Costly/ difficult to manage

Question 5

What does the Thornhill & White evidence say?

Answer 5

Pure strategies often better and never worse than hybrid strategies.

Question 6

What are arguments to use hybrid strategies

Answer 6

Strong position in one can improve the other

Question 7

What are problems with pure strategies?

Answer 7

• Specialisation can leave some customers
• Easier to imitate
  *Less responsive

Question 8

Does a perfect hybrid strategy leads to better performance? (Persusa-Ortega)

Answer 8

Yes, cost&innovation&marketing

Question 9

Does pure cost leadership leads to better performance? (Persusa-Ortega)

Answer 9

No.

Question 10

Give tree approaches to implement options (ROT)

Answer 10

ROR –> Way of thinking by managers
ROV –> Mathematical models
BP. –> Focusses on behaviours of managers

Question 11

Real Options Theory lens: heterogeneity and CA

Answer 11

Options foster unique capabilities wich creates options (recognition of shadow options)