Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
13 Cards in this Set
- Front
- Back
|
COMPETITIVNESS |
The competing firms in an industry, their strength and the ease of entry for new firms have an impact on: - Level of choice for customers - The degree of competition in terms of price, promotion and new product development. - The profitability of firms in the industry - The likelihood of illegal collusive agreements |
|
|
PORTERS THREE GENERIC STRATEGIES What they are |
(1) Cost Leadership - Same quality but lower price (2) Differentiation - Innovative, enabling differentiation (3) Focus - Concentrating on a small part of the market |
|
|
PORTERS THREE GENERIC STRATEGIES The adoption is based on... |
- An analysis of the threats and opportunities posed by forces operating in the specific industry - The general environment in which the business operates - An assessment of the units strength and weaknesses relative to competitors. |
|
|
BOWMAN'S STRATEGIC CLOCK |
P1 - Low price/Low value P2 - Low price P3 - Hybrid P4 - Differentiation P5 - Increased price/Standard product P6 - High price/Low value P7 - Low value/Standard pricing |
|
|
POSITIONING VIEW |
See's competitive advantage stemming from the firms position in relation to it's competitors, customers and stakeholders. - High market share relative to rivals - Differentiated product - Low Costs Criticisms - The competitive advantages are not sustainable - Environments are too dynamic to enable positioning to be effective - It is easier to change the environment that it is to change the firm |
|
|
RESOURCE BASED VIEW Barne (1991) |
See's competitive advantage stemming from some unique asset or competence possed by the firm. -> Valuable - They must be able to exploit opportunities or reduce threats in environment -> Rare - Competitors must not have them too -> Imperfectly Imitable - Competitors must not be able to obtain them -> Substitutability - It must not be possible for a rival to find a substitute for their resources. |
|
|
PRAHALAD AND HAMEL |
Core competence (something that you are able to do that is very difficult for competitors to emulate) has 3 characteristics: - It provides potential access to a wide variety of markets. - It increases perceived customer benefits. - It is hard for competitors to imitate. |
|
|
RESOURCE AUDIT Four Headings |
- Physical or Operational resource - Human resource - Financial resource - Intangibles |
|
|
RESOURCE AUDIT Identified as... |
Basic - Similar to competitors and will be easy to obtain and copy. Unique - Will be different from competitors and difficult to obtain. The more unique a resource the stronger the competitive advantage. |
|
|
RESOURCE AUDIT Competence |
Threshold - Attain avoids competitive disadvantage. It represents those processes,procedures and product characteristics that are necessary to enter a particular market.
Core - Attainment gives the basis for competitive advantage over others withinthat market, or to change the competitive forces in the market to itsadvantage.
|
|
|
DISTINCTIVE CAPABILITY Kay (1997) |
Distinctive capability arises from four forces:
- Competitive advantage - Reputation - Innovative ability - Ownership of strategic assets
|
|
|
DISTINCTIVE CAPABILITY Stalk et al (1992) |
Suggests four principles of capabilities based competition.
(1) The building blocks of corporate strategy arebusiness processes. (2) Competitive success depends on ability totransform these processes into strategic capabilities. (3) Creating these capabilities requires group wideinvestment. (4) Therefore champion is CEO.
Will usethese to outperform on five dimensions
- Speed - Consistency - Acuity - Agility - Innovativeness
|
|
|
PORTERS VALUE CHAIN |
Primary activities - Inbound logistics - Operations - Outbound logistics - Sales and marketing - Service Support activities - Infrastructure - Technology development - Human resource management - Procurement |
