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Unformatted text preview: 'MGT 4000 Fall 2008 Takeda The Concepts of Competitive Strategy and Competitive Advantage - 1 Competitive Strategy - deals exclusively with a company's business plans to com~te sUC~~_~y o Specific efforts to please customers o Offensive and defensive moves to counter maneuvers of rivals o Responses to prevailing market conditions o Initiatives to strengthen its market position o Narrower in scope than business strategy Competitive Advantage - firms strategy gives it an edge o good product at a !2.wpric~ o superior product worth paying for o best value product The Concept of a Company Value Chain - 2 (p.ll 0) All the various activities that a company performs internally. The value chain identifies the primary activities that create customer value and the related support activities Consists of two broad categories o Primary Activities - foremost in creating value for customers Supply chain management Operations Distribution Sales & Marketing Service Profit Margin o Support Activities - facilitate and enhance the performance of the primary activities Product Research and Development (R&D), Technology, and Systems Development Human Resources Management General Administration o These identify the major components of its cost structure Value Chain/or an entire industry o Supplier-Related: Activities, costs, and margins of suppliers o Company Value Chains: Internally performed activities, costs, and margins o Forward Channel Value Chains: Activities, costs, and margins of forward channel allies and strategic partners AND buyer or end-user value chains. Identifying Company Resource Strengths and Competitive Capabilities - 1 Resource Strength: something a company is good at doiJ:}gor an attribute that enhances its competitivene~s in the market place ..----- o A skill, specialized expertise, or competitively important capability o Valuable physical assets o Valuable human assets and intellectual capital o Valuable organization assets o Valuable intangible assets o An achievement or attribute that puts the company in a position of market advantage o Competitively valuable alliances or cooperative ventures Competitive Capabilities: a company's resource strengths represent competitive assets and are big determinants of its competitiveness and ability to succeed in the marketplace Competencies, Core Competencies, Distinctive Competencies and Competitive Capabilities - 4 Competencies: Something an organization is good at doing. Almost always the product of experience, representing an accumulation of learning and the buildup of proficiency in performing an internal activity. o Ex. just-in-time inventory control or designing an unusually appealing and user-friendly website Core Competence: A proficiently performed internal activity that is central to a company's strategy and competitiveness. Often knowledge-based, residing in people and in a company's intellectual capital and not in its assets on the balance sheet.not in its assets on the balance sheet....
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This note was uploaded on 04/09/2009 for the course MKTG 4000 taught by Professor Margarettakeda during the Fall '08 term at Colorado.
- Fall '08