This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
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....
View Full Document
- Fall '08
- strategic vision, high entry barriers, competitive pressures, weak entry threats