Strategy and models Flashcards
RBV
Resource-based view
Unique resources - not easily obtained
What does competitive strategy aim to achieve
Aims to establish a profitable and sustainable position against the forces that determine industry competition
four generic strategic positions
1- low price: strive to compete by offering a product or service at such a low cost that can outse;; competitors and still earn good profit margin
2- Differentiation. Strive to compete by offering unique technical or design features at relatively high prices
3- premium (focused differentiation). strive to compete by offering highest quality and rare technical and design features to narrow market segment at high prices
4- Blue Ocean - strive to compete by entering new market spaces with an innovative product and a value proposition based on good price and unique features
Different ways to outperform competition
economic focus
differentiation
premium
Blue ocean
explain the blue ocean strategy
both differentiation and low cost
Blue ocean focuses on value innovation creating a new market with a innovative product
what is a business model
a business model describes how an organisatioun creates, delivers and captures value
it outlines the core logic of how a company operates and generates revenue, including its product/service, target customers, revenue strams, cost structure, key activities, resources and partnership needed for profitable operation
three rules guide the most successful business through all of their important decisions
1- better before cheaper
2- revenue before cost
3- there are no other rules - change anything you must to follow the first two
google .com is an example of a firm that -
changed the business environment within its industry
the resource based perspective suggests that unique firm resources should be the starting point for developing successful strategies
unique firm resources should be the starting point for developing successful strategies
the concept of core competencies was originally devised by-
C.K Prahalad and Gary Hamel
the VRIO framework can be used to identify
a firms core competencies
Dynamic capabilities refer to-
the combination of individual technology
how to achieve a long term sustainable competitive advantage?
the creation of value
Leadership strategy with the CEO and strategy consultants…
CEO as chief strategist; the job cannot be outsourced
view strategy as a dynamic process results in a strategic that takes what form?
an organic process that is adaptive, holistic and open ended
what is the time frame of a dynamic strategy
everyday, continuous and unending
what is the ongoing activity of a dynamic process?
fostering competitive advantages and developing the company through time
quote by Clayton M.Christensen on competitive advantage
Today’s competitive advantage may become tomorrows albatross unless strategists attune themselves to changes in underlying conditions
economies of scale - definition
cost advantages that businesses achieve as production increases, leading to lower per unit costs
What are the two types of economies of scale?
internal - cost reductions within the company - eg bulk purchasing and specialised labor
external : cost benefits from industry growth eg supplier efficiencies, improved infrastructure
economies of scope - definition
cost advantages that arise when a company produces multiple products more efficiently together than separately
an example of economies of scope
a car manufacturer producing trucks and SUVs using the same assembly line to lower costs
what is vertical integration?
owning multiple stages of the supply chain
what is non-integration?
relying on external suupliers and distributors
