Part 1 Flashcards
What are the 5 different components of strategy?
- Arenas; Where active?
- Vehicles; through which means?
- Differentiators; how beat competition?
- Staging; sequence of the company moves?
- Economic logic; how become profitable?
Maximization of the consumer surplus will lead to value creation. What are the two key strategies for value creation?
- Differentation strategies: Increase the WTP
- Cost leadership strategies: Decrease the exchange value/lower the price
The ability to capture value depends on barriers to imitation of products and services. What are the 3 ways to predict value capture?
- Causal ambiguity; no one knows your business, secret
- Time compression diseconomies; first mover, costly to catch up with big players
- Isolating mechanisms; Nda’s etc, hinder knowledge outflow to other firms
What is a business model
A description of how a firm creates, delivers, and captures values for its customers, partners and stakeholder
What is a strategy
A collection of five irrelated and mutually reinforcing choices that specify how, where, and when a firm will compete and achieve its objectivee in competitive circumstances.
What are the nine key elements of a business model? HINT: 4x C, 3x K, 1xV, 1xR
- Customer segments
- Channels
- Customer relationships
- Cost structure
- Key resources
- Key activities
- Key partnerships
- Value proposition
- Revenue streams
What is a capability
An internally ingrained, non-transferable, firm specific resource explicitly designed to enhance the productivity and performance of the firm’s other resources.
Managing strategic resources involves navigating various forms of luck. Which 4 types of luck are there?
- R&D luck; right timing, uplanned discoveries and successes
- Trading luck; purchasing/selling in your favor
- Compatibility luck; choose right platform that aligns with emerging industry trends
- Positioning luck; first mover advantage
What are the different types of dynamic capabilities?
- Reconfigure Resources
- Gain and Release Resources; alliances and acquisitions
- Integrate Resources; optimize resource utilization by combining skills and expertises
What are mobility barriers? And why is it assymetrical?
Costs associated with move to another strategic group. It is often assymetrical while for the one group it is easier to move to another strategic group than for another group
What is the difference between industry perspective and competitive dynamics?
The industry perspective is about the macro level of the industry (porters 5 forces) and the competitive dynamics is about the micro level (one vs one). Also a industry perspective is symmetrical when it comes to firm relationships, and with competitive dynamics it is asymmetrical.
What are the drivers of competitive behaviour?
AMC framework;
1. Awareness; firms awareness of competitors and environment
2. Motivation; incentives to engage in competition with rival
3. Capability; what is the firms capacity to compete? Resource deployment, decision making processes etc.
What are the two axes of the Framework of competitive analysis?
X-Resource similarity
Y- market commonality
Explain mutual forbearance
When firms do not attack competitors/rivals they meet in multiple markets. This occurs because commonality and resource similarity allow both firms to counteract each others actions; (you know what the ofher can do to you)
What do they mean with disruptive innovation, and what are the characteristics?
When a firm transforms a product that was historically very expensive to produce into a product that is relatively affordable.
Characteristics;
1. Lower gross margins
2. Smaller target markets
3. Simpler products and services
