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29 Cards in this Set
- Front
- Back
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inputs used by the firms to create products and services
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resources
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a firm's skill at using its resources to create goods and services, the combination of procedures and expertise on which a firm relies to produce goods and services
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capabilities
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a capability that meets the criteria of VRINE, which by definition is distinctive (rare) and core (valuable to its strategy)
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core competencies
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5 VRINE Criteria
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Valuable
Rare Inimitable Nonsubstitutable Exploitable |
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5 Primary Activities of Value Chain Analysis:
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Inbound Logistics
Marketing and Sales Operations Outbound Logistics Service |
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4 Support Activities of Value Chain Analysis:
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Accounting and Finance
Human Resources Procurement Technology |
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3 Outsourcing Decisions:
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Commit Time and Effort
Treat Outsourcing Partners as Partners Involve Middle Management |
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a firm's ability to modify, reconfigure, and upgrade resources and capabilities in order to strategically respond to or generate environmental changes
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dynamic capabilities
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Four Generic Competitive Strategies:
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Cost Leadership
Differentiation Focused Cost Leadership Integrated Low Cost |
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strategic position based on producing a good or offering a service while maintaining total costs that are lower than what it takes competitors to offer the same product or service
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low-cost leadership
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How does low-cost leadership maintain sustainability?
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Delivers an acceptable product that satisfies basic needs at the lowest possible cost
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Risk to low-cost leadership?
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Eliminating some features or services in order to drive costs down
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2 Characteristics of Differentiation:
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Set prices at the industry average
Raise prices over those of competitors |
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strategic position based on products or offers services with quality, reliability, or prestige that is discernibly higher than that of competitors and for which customers are willing to pay
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differentiation
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How does differentiation maintain sustainability?
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Satisfy one or more needs that are valued by buyers and do so in a manner superior to that available from most competitors
Must be willing to pay higher prices for the added points of differentiation |
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Risk to differentiation?
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Typically results in higher costs in some value-chain activities
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strategic position based on being a low-cost leader in a narrow market segment
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focused cost leadership
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strategic position based on targeting products to relatively small segments
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focused differentiation
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Risk to focused differentiation?
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The greater the differentiation, the smaller the market segment to which a product will appeal
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strategic position in which elements of one position support strong standing in another
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integrated position
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Aim to exploit both low-cost and differentiation, however they do neither very well
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"stuck in the middle" (Ex. Chrysler)
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pattern of evolution followed by an industry inception to current and future states
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industry life cycle
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4 Different Stages of Industry Life Cycle Curve:
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1. Embryonic
2. Growing 3. Mature 4. In Decline |
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Niche market - selected products for selected markets
Participants emphasize problem solving - product as "solution" Technological uncertainty |
Embryonic
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Market expands beyond niche
More competitors enter Customers become better informed |
Growing
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Proliferation of products and markets served
Market volatility and beginnings of industry consolidation Aggressive customers |
Mature
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Product/market contraction
Further consolidation and industry regeneration |
In Decline
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the firm that is first to offer a new product or service in a market
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first mover
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second significant company to move into a market, quickly following the first mover
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second mover
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