Successful business formulate a clear competitive strategy. They make the tough choices about how and where to compete. These firms do not try to be all things to all people. Instead they select their target markets carefully and they choose what not to do. By making clear trade-offs, they develop a distinctive position in the marketplace and they make it quite difficult for established rivals to engage in successful imitation.
What is strategy? Well, the word “strategy” may be defined as a long term plan of action to achieve a particular goal—winning a political campaign, getting into Stanford Business School, or, in the corporate world, beating rivals in the marketplace.
Note that strategies are different from tactics in that tactics are …show more content…
This double-decker carries anywhere from 481 to 656 passengers and features different passenger configurations.
In contrast to Airbus’s “new design” strategy, Boeing initially went merely for a “stretch” and revamp of its older 747 aircraft—for less than half the cost. Boeing’s underlying strategy was to counter Airbus’s product differentiation and production innovation with a cost advantage. Interestingly enough, Airbus wound up eating Boeing for lunch.
Within months, Airbus got over sixty orders for its innovative super-jumbo. In the same time interval, Boeing’s stretched old plane dressed up in new clothes got zero orders. In response, Boeing quickly discontinued the project and has since leapfrogged Airbus with totally new designs.
For instance if the company plans to enter a new market, the managerial team must establish a corresponding business unit, adapt an existing business unit, or acquire an existing business.
By the same token, if the company plans to exit from a market, the team must close the corresponding business unit, adapt the business unit to focus on other activities, or divest the unit. The managerial team’s choice of goals thus helps to specify the scope of the
What is strategy? Well, the word “strategy” may be defined as a long term plan of action to achieve a particular goal—winning a political campaign, getting into Stanford Business School, or, in the corporate world, beating rivals in the marketplace.
Note that strategies are different from tactics in that tactics are …show more content…
This double-decker carries anywhere from 481 to 656 passengers and features different passenger configurations.
In contrast to Airbus’s “new design” strategy, Boeing initially went merely for a “stretch” and revamp of its older 747 aircraft—for less than half the cost. Boeing’s underlying strategy was to counter Airbus’s product differentiation and production innovation with a cost advantage. Interestingly enough, Airbus wound up eating Boeing for lunch.
Within months, Airbus got over sixty orders for its innovative super-jumbo. In the same time interval, Boeing’s stretched old plane dressed up in new clothes got zero orders. In response, Boeing quickly discontinued the project and has since leapfrogged Airbus with totally new designs.
For instance if the company plans to enter a new market, the managerial team must establish a corresponding business unit, adapt an existing business unit, or acquire an existing business.
By the same token, if the company plans to exit from a market, the team must close the corresponding business unit, adapt the business unit to focus on other activities, or divest the unit. The managerial team’s choice of goals thus helps to specify the scope of the