Concepts SM

Question 1

Strategy

Answer 1

Ambition into goals, into actions

Question 2

Strategic Management

Answer 2

Formulation of vision through to execution of strategy

External environment, where to play, how to win

Question 3

Risk X innovation Capabilitiy

Answer 3

DC, VS, Niche players, FF, Avoiders

Question 4

CA of fully digital BMs

Answer 4

Falling MCs

Question 5

5 principles

Answer 5

1) Commit to outperform the market through commercial innovation
2) Embrace new business models (e.g. multi- sided platforms, JVs)
3) Compete on both cost leadership and value differentiation
4) Allocate sufficient resources to “big plays”
o E.g. Calsberg revitalised core lager and craft beer acquisitions and partnership; split between the two following decline in standard lager sales
5) Maintain flexibility and adapt to reality

Question 6

A market

Answer 6

Customer or geography.

NOT industries or categories.

Question 7

Segmentation

Answer 7

Person in a place (B2C)

Behavioural, psychographic, geographic, demographic

Question 8

Fours A’s

Answer 8

Usually for BOP

Awareness, Acceptability, Affordability, Availability

Question 9

Innovation at BOP

Answer 9

Anderson and Markides

Real innovation in new whats and new hows. But care to new who’s.

Question 10

Drivers of disription

Answer 10

Legislation, technology, Investors

Question 11

Disruptive Innovation

Answer 11

Innovate ahead of needs

Miss BOP, or uncatered

Disruptors target BOP w less good product, them move upstream to disrupt

Question 12

Mckinsey graph

Answer 12

Detectable, clear, inevitable, new normal

Question 13

Responses to disruption

Answer 13

Acquisition, Own venture, Switch to selling solutions, Switch to low cost model

Question 14

Critique of Christenson

Answer 14

Ignores supply side;This leads to networks

Implications: Identifying (multiple industries), far more dangerous, Theory applied inconsistently

Question 15

Dual CA

Answer 15

Competes on differentiation and cost (price and benefit)

Question 16

Blue and Red Ocean Strategies

Answer 16

Blue-New value proposition to a new market

Red-Serves existing needs, can still have dual CA

Question 17

Blue Ocean Critique

Answer 17

Sung Cho

No such thing, nowhere is pristine, no such things as untapped market

Question 18

Porters 5 forces

Answer 18

Competitions and conflict w:

New entrants, suppliers, customers, substitutes, and rivalry amongst existing competition.

Question 19

CA

Answer 19

Circumstance that puts you in favourable business position

wide wedge between the willingness to pay it generates among buyers and the costs it incurs

Question 20

Value pyramid

Answer 20

Social Value
Category Value
Brand Value
Product/Service Value

Can come from several layers

Question 21

Diff types of CA

Answer 21

Social Value, Brand Value, Product/Service Value (3G), Category Value e.g. Tenzing

Question 22

VS Low cost rivals

Answer 22

• Price wars
  -Differentiate
  -Selling solutions/servivec
  -Add low cost business
  Switch to low cost model

Question 23

CA in B2B

Answer 23

Social Value
Customer Value
Relationship Value
Product/Service

Question 24

3 collaborative strategies

Answer 24

Market presence, access resources, gain market reach

Question 25

Categories cc gaining market reach

Answer 25

Outsourced contracts
Reseller agreements (strategic alliance)
Shared risk ventures

Question 26

Failures of strategic partnership

Answer 26

Culture, objectives, Governance, overestimated market potential, executive commitment

Question 27

Open innovation failure

Answer 27

IP, Returns, LT interest, Open source compete

Question 28

Types of collab

Answer 28

Customer co-creation 
Standard Setting 
Presence
Resources 
Market Reach 
Open Innovation 
Influencers

Question 29

Networked Market

Answer 29

Market dominated by a platform

Question 30

Platform

Answer 30

• Bring together two or more groups of stakeholders

- Often underserved customers and suppliers with over capacity

Question 31

Sucesses of platforms?

Answer 31

• W scale
• Winner takes all through scale
• New competitors struggle to keep prices low to drive widespread adoption
• Anti-comp behaviour

Question 32

Classification platforms

Answer 32

Innovation platforms facilitate the matching of complementary products and services without lock-in to a proprietary technology limitation. Innovation platforms don’t typically focus on assisting diverse stakeholder groups find each other and transaction business.

Transaction platforms help individuals and institutions to find each other, such as Amazon, Airbnb, Uber. These may be “thin” pure-play platforms (JustEat) or “thick” platforms such as Deliveroo which take accountability for delivering a broader range of value-added services. Amazon is a hybrid example that also has its own “pipe” value chain in- house retail & delivery service plugged into a marketplace platform.

▪ Technology platforms that provide access to products and services (and may be both an innovation and transaction platform). The technology provider typically controls access and governs use of the platform through an operating system (e.g. Android) and/or hardware (e.g. Apple/Playstation)

Question 33

Platform economics

Answer 33

Building demand side economies of scale

Growth/valuation imperative

Value to participant increases w number of users

Question 34

Trust and platforms

Answer 34

Low transparency
Workers in the demand economy
Anti-Competitive e.g. preferred customer clauses

BUT

Leveraged networks for good + new things tried

Question 35

Transient advantage

Answer 35

CA not long lasting.

Metrics, innovation, areas not industries