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26 Cards in this Set
- Front
- Back
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Offensive strategy options |
1. Offer equally good products at a lower price 2. Be the first to market next-gen products 3. Continuous product innovation 4. Adopting ideas and improving them 5. Hit and run on complacent rivals 6. Strike preemptively to get advantageous position |
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Four late mover advantages |
1. When pioneering is more costly than imitation 2. Innovator products don't live up to expectations, allowing better performers in 3. When rapid evolution allows leapfrogging 4. When uncertain markets allow late movers to wait until consumer need is clarified |
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Five objectives of mergers |
1. Two high cost companies into one low cost 2. Expand geographic coverage 3. Expand into new products 4. Gain access to new tech or resources 5.Lead convergence of "blurred line" industries |
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Six reasons to outsource |
1. Activity can be done better/cheaper by others 2. Activity isn't crucial for competitive advantage 3. Improves flexibility and speed time to market 4. Reduces risk due to changing tech/preferences 5. Quickly assemble diverse expertise 6. Allows focus on core business |
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Three tests for diversification |
1. Industry attractiveness (profits above current) 2. Cost of entry test 3. Better off test (new and old should work better together than separately) |
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Three strategies for entering new businesses |
1. Acquire and existing business 2. Enter through internal development 3. Joint venture |
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Five examples of strategic fit |
1. Transfer expertise and tech 2. Combine related activities on supply chain 3. Exploit well-known brand name 4. Share resources 5. Cross-business collab to make new resources |
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Three examples of pro/con to divest |
1. Does business meet corp. targets and ROI 2. Does the industry have growth potential 3. Does business contribute to the bottom line |
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Two measure of industry attractiveness |
1. Presence of strategic fit 2. Matching resource requirements |
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Five reasons to expand internationally |
1. Gain access to new customers 2. Achieve lower cost through economics of scale and increased purchasing power 3. Exploit core competencies 4. Gain access to foreign resources 5. Spread business risk among wider base |
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Five strategies to enter a foreign market |
1. Export goods 2. License products 3. Franchise (licensing for service/retail) 4. Foreign subsidary 5. Joint venture |
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Four reasons to concentrate business in one geographical area |
1. Costs are significantly lower 2. Significant scales economies 3. When there are learning/experience benefits 4. When there are better resources |
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Five defenses against global giants |
1. Exploit shortcomings in local distribution and infrastructure 2. Use understanding of local customers to make customized products 3. Take advantage of local workforce specialties 4. Use rapid growth 5. Begin global expansion yourself |
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Blue ocean strategies |
Don't try to compete in an existing market, create your own |
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Scope of the firm |
Internal activities Breadth of offerings Geographic market presence |
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Horizontal scope |
Range of products |
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Vertical scope |
range of steps in the product chain |
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Synergy |
Whole is greater than the parts |
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Acquisition premium |
The amount the offered price exceeds the preacquisition value |
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Corporate venture |
process of developing new business as an outgrowth of old business |
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Strategic fit |
When activities from two business share a link on the value chain |
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Economies of scope |
cost saving from sharing between value chains of related businesses |
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Internal capital market |
adding value by shifting capital from successful business to struggling business |
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Greenfield venture |
subsidery where you set up the operation from the ground up |
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Multidomestic strategy |
varied product offering from country to country (think local, act local) |
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Global strategy |
same products and approach everywhere (think global, act global |
