Introduction to Strategy Flashcards
Business level strategy
how competitive advantage is maintained
involves:
- resources/capabilities
- industry evaluation
Corporate level strategy
scope of the firm, more partnership and alliance focused
Strategy
How you develop sustainable competitive advantage. Achieved through:
- differentiation / unique positioning
- trade offs
- fit (everything matters)
Operational Effectiveness
NOT strategy as it is easily imitable
Performing similar activities better than competitors
Variety based positioning
produce a subset of an industries products/services
Needs-based positioning
Serving the needs of most of a customer base
Access-based positioning
Segment customers by geography
Tradeoffs
Choosing what not to do, why trade-offs are important
–Inconsistencies in the image of reputation
–Incompatibility in activities
–Limits on internal coordination and control
1st order of fit
Simple consistency between each activity
2nd order fit
Activities are reinforcing
3rd order fit
Optimization of effort
Core question of strategy
Why do some firms perform better than others. Based on:
- where you compete (industry)
- competitive advantage
- resources
- sustaining competitive advantage
