Strategic Management Final

Front 1

3 things that successful strategy requires

Back 1

1. attractive market opportunity (external)
2. resources/capabilities to serve that market better than competitors can (internal)
3. execution/implementation

Front 2

4 predatory acts to deter entry

Back 2

1. limit pricing
2. predatory pricing
3. capacity expansion
4. wars of attrition

Front 3

3 structural entry barriers

Back 3

1. low demand
2. high capital requirements
3. limited access to resources

Front 4

definitiion of prison's dilemma

Back 4

situation where incentives of the individual and incentives of the group are in conflict

Front 5

2 requirements of prisoner's dilemma game

Back 5

1. all players have a dominant strategy
2. nash equilibrium is pareto inefficient

Front 6

assumes price competition

Back 6

Bertrand

Front 7

assumes quantity competition

Back 7

Cournot

Front 8

Porter's 5 Forces

Back 8

-Threat of New Entrants
-Threat of Subsitutes
-Bargaining Power of Suppliers
-Bargaining Power of Buyers
-Rivalry Among Current Competitors

Front 9

structural entry barriers

Back 9

inherent natural advantages that incumbents have simply by virtue of incumbency (don't require any ongoing action by incumbents)

Front 10

strategic entry barriers

Back 10

active entry-deterring behavior by imcumbents

Front 11

threat of new entrants is highest when

Back 11

E/U/C/SC/CS/T
-Economies of scale are low
-Undifferentiated product
-Capital requirements are low
-low Switching Costs
-incumbents don't Control Supplies
-incumbents lack special Technology

Front 12

threat of substitutes is highest when

Back 12

S/PS
-substitute is Superior (or catching up) in its price/performance relationship
-customers are highly Price Sensitive

Front 13

power of suppliers is highest when

Back 13

HC/S/F/SP/D/SC
-suppliers are Highly Concentrated
-Substitutes for their products are unavailable
-suppliers can Forward integrate
-focal industry is Small Percent of suppliers' business
-suppliers products are highly Differentiated
-high Switching Costs between suppliers

Front 14

power of buyers is highest when

Back 14

C/U/B/CS/LP/I
-buyers are Concentrated and buy in high volumes
-Undifferentiated product
-buyers can Backward integrate
-buyers know Cost Structure
-product represents Large Percent of buyers' total costs
-product has little Impact of quality of buyer's final product

Front 15

3 limitations of 5-force model

Back 15

1. views parties only as threats, not allies
2. tells nothing about specific firms, differences in profitability within industry
3. provides no guidance on relative weights of various factors

Front 16

strategy of resource-based view

Back 16

discovering tangible and intangible resources and combining them to build capabilities to serve market needs

Front 17

3 qualities of valuable resources

Back 17

1. demand
2. scarcity
3. appropriation

Front 18

3 components of demand (for RBV)

Back 18

1. does is satisfy a real market need?
2. competitive superiority
3. synergy (fits effectively with firms other resources)

Front 19

4 components of scarcity (for RBV)

Back 19

1. rarity (can it be bought in market?)
2. imitability (hard for others to copy?)
3. substitutability (can it be trumped by other resources)
4. durability

Front 20

5 barriers to imitation

Back 20

1. hide superior performance
2. deterrence (threat to punish imitators)
3. preemption (lock up all profitable uses)
4. causal ambiguity (multiple resources to disguise source of advantage)
5. immobility (capacity embedded in firm's culture)

Front 21

2 components of appropriation (for RBV)

Back 21

1. mobility (how difficult to move b/w firms?)
2. resources often don't work in isolation - who owns other complimentary assets?

Front 22

superior performance requires both

Back 22

1. attractive market opportunity
2. capabilities needed to best serve that market

Front 23

4 strateges for creating a revolutionary business model

Back 23

1. challenge orthodoxy with alternative methods
2. view markets differently
3. invert market attractiveness
4. create new market space formula

Front 24

when is diversification good?

Back 24

when it creates economies of scale or synergies

Front 25

performance ranking of different levels of business differentation

Back 25

#1 related diversified
#2 single business
#3 urelated diversified

Front 26

when is vertical integration good?

Back 26

if it gives control over decisions critical to your competitive advantage

Front 27

5 organizational structures

Back 27

1. functional
2. geographic
3. decentralized line-of-business
4. strategic business units
5. matrix