Concepts SM Flashcards
Strategy
Ambition into goals, into actions
Strategic Management
Formulation of vision through to execution of strategy
External environment, where to play, how to win
Risk X innovation Capabilitiy
DC, VS, Niche players, FF, Avoiders
CA of fully digital BMs
Falling MCs
5 principles
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
A market
Customer or geography.
NOT industries or categories.
Segmentation
Person in a place (B2C)
Behavioural, psychographic, geographic, demographic
Fours A’s
Usually for BOP
Awareness, Acceptability, Affordability, Availability
Innovation at BOP
Anderson and Markides
Real innovation in new whats and new hows. But care to new who’s.
Drivers of disription
Legislation, technology, Investors
Disruptive Innovation
Innovate ahead of needs
Miss BOP, or uncatered
Disruptors target BOP w less good product, them move upstream to disrupt
Mckinsey graph
Detectable, clear, inevitable, new normal
Responses to disruption
Acquisition, Own venture, Switch to selling solutions, Switch to low cost model
Critique of Christenson
Ignores supply side;This leads to networks
Implications: Identifying (multiple industries), far more dangerous, Theory applied inconsistently
Dual CA
Competes on differentiation and cost (price and benefit)
Blue and Red Ocean Strategies
Blue-New value proposition to a new market
Red-Serves existing needs, can still have dual CA
Blue Ocean Critique
Sung Cho
No such thing, nowhere is pristine, no such things as untapped market
Porters 5 forces
Competitions and conflict w:
New entrants, suppliers, customers, substitutes, and rivalry amongst existing competition.
CA
Circumstance that puts you in favourable business position
wide wedge between the willingness to pay it generates among buyers and the costs it incurs
Value pyramid
Social Value
Category Value
Brand Value
Product/Service Value
Can come from several layers
Diff types of CA
Social Value, Brand Value, Product/Service Value (3G), Category Value e.g. Tenzing
VS Low cost rivals
- Price wars
-Differentiate
-Selling solutions/servivec
-Add low cost business
Switch to low cost model
CA in B2B
Social Value
Customer Value
Relationship Value
Product/Service
3 collaborative strategies
Market presence, access resources, gain market reach
Categories cc gaining market reach
Outsourced contracts
Reseller agreements (strategic alliance)
Shared risk ventures
Failures of strategic partnership
Culture, objectives, Governance, overestimated market potential, executive commitment
Open innovation failure
IP, Returns, LT interest, Open source compete
Types of collab
Customer co-creation Standard Setting Presence Resources Market Reach Open Innovation Influencers
Networked Market
Market dominated by a platform
Platform
- Bring together two or more groups of stakeholders
- Often underserved customers and suppliers with over capacity
Sucesses of platforms?
- W scale
- Winner takes all through scale
- New competitors struggle to keep prices low to drive widespread adoption
- Anti-comp behaviour
Classification platforms
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)
Platform economics
Building demand side economies of scale
Growth/valuation imperative
Value to participant increases w number of users
Trust and platforms
Low transparency
Workers in the demand economy
Anti-Competitive e.g. preferred customer clauses
BUT
Leveraged networks for good + new things tried
Transient advantage
CA not long lasting.
Metrics, innovation, areas not industries
