Mintzberg (C4 - Positioning)

Question 1

Key feature of positional strategy

Answer 1

Asserts that only a few key strategies - as positions in the economic environment - are desirable in any given industry: ones that can be defended against existing and future competitors.

This affords the firm higher profits, and more reserves with which to expand with.

Question 2

Formulation of strategy

Answer 2

Lies in the use of analysis and frameworks to identify the right relationships between the firm and its environment.

Controlled, conscious process. Strategy made explicit before being formally implemented.

Question 3

Four key points

Answer 3

1. Strategy = generic, common, identifiable positions in the marketplace.
2. Context is economic and competitive
3. Strategy formation is process selection of one of the generic positions based on analytical calculation.
4. Analysts play a vital role.
5. Strategies come out of this process complete and then are articulated and implemented.

Question 4

Organisational structure and positional strategy

Answer 4

Market structure drives deliberate positional strategies which drives organisational structure.

Question 5

Sun Tzu and Positioning school

Answer 5

Warning against generic strategies;

‘The musical notes are only five in number but their melodies are so numerous that we cannot hear them all’

‘when i have won a victory I do not repeat my tactics but respond to circumstances in an infinite variety of ways’

Question 6

Robert Katz maxim

Answer 6

“always lead from strength”

Question 7

BCG Growth-Share Matrix

Answer 7

Cash cow - high market share, low growth (supply funds for growth).

Dogs - low market share, low growth (not necessary).

Problem child - low market share, high growth (needs cash to be converted into stars)

Star - high market share, high growth (assure the future).

all products eventually become cash cows or dogs.

Question 8

The Experience Curve

Answer 8

Firms learn from experience at a constant rate, meaning that the cost production falls in proportion to the volume produced over time.

In relation to positional strategy - position yourself as the dominant player, ramp up volume and see falling costs & rising profits.

Question 9

Porter five forces

Answer 9

Strategy should be based on the market structure.

Five forces:
threat of new entrants 
bargaining power of suppliers
bargaining power of customers
threat of substitute products 
intensity of rivalry among competing firms

Question 10

Porter competitive advantage

Answer 10

two types of competitive advantage: low cost or differentiation.

Leading to three strategies;

• cost leadership
• differentiation
• focus (narrow market segments)

Question 11

Examples

Answer 11

find some