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10 Cards in this Set
- Front
- Back
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What are the two principal implications for competitive advantage in mature industries? |
- Tends to reduce the number of opportunities for establishing competitive advantage - It shifts these opportunities from differentation-based factors to cost-based factors |
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what are the reasons that the number of opportunities for competitive advantage reduce? |
- Less scope for differentation advantage --> Better informed buyers, product standarization, lack of technological change - Diffusion of process technology - Lower barrier for new entrants --> Highly developed industry infrastructure, powerfull distributors |
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What are the primary sources of low costs? |
- Economies of scale - Low-cost inputs - Low overheads |
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What is the defenition of corporate restructuring and what does it involve? |
"Intensive periods of structural and strategic change" Involves: Cost reduction through outsourcing, headcount reduction, downsizing |
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What are three succesfull approaches of corporate restructuring? |
- Asset and cost surgery - Selective product and market pruning - Piecemeal productivity moves |
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Name the ways how firms can seek strategic innovation by redefining markets and market segments |
- Embracing new customer groups - Augmenting, bundling, and theming - Customer solutions (an itegrated bundle of products and support services that are offered as a customized pack) - Liberation from the maturity mindset |
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What are the key features of declining industries? |
- Excess capacity - Lack of technical change - Declining number of competitors - High average age of both physical as human resources - Agressive price competition |
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What determines whether or not a declining industry becomes a competitive bloodbad? |
- Balance between capacity and outcome - Nature of the demand for the product |
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It is very important for companies to adjust the capacity to declining demand, this depends on the following factors: |
- Predictability of decline - Barriers to exit - Strategies of surviving firms |
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Name the strategy alternatives for declining industries |
- Leadership - Niche - Harvest - Divest |
