MBASession8Handout.pdf - Strategic Management Session 8 STRATEGY 558Q 2018 Today\u2019s Agenda \u2022 Discuss Toyota Prius Case \u2022 \u2022 Consider your First

MBASession8Handout.pdf - Strategic Management Session 8...

This preview shows page 1 - 8 out of 23 pages.

1Strategic ManagementSession 8STRATEGY 558Q 2018Today’s AgendaDiscuss Toyota Prius CaseConsider your First Mover AnalysisDecide if Toyota should accelerate the Prius launch---------------------------------------------------------------Discuss first mover strategiesExplore when and why first movers are likely to do wellConsider how the firm should manage as a first mover
2Progress to DateSources of AdvantageBoundaries & GovernanceEntry & SubstitutionConcentration & PowerResources & EndowmentsPositioningCompetitive DynamicsInstitutionsFirst or Second MoverExploration and ExploitationGlobalizationGM’s EV1 (1996)
3GE’s Electric Car (1967)Source: GE Internal Documents
4Is the hybrid car segment an attractive segment?Environmental AnalysisFive Forces AnalysisCompetitor AnalysisEnvironmental Analysis for Hybrid CarsDemographic: Sociocultural: Economic: Political/legal:Global trade:Technological:
5Five ForcesCompetitor AnalysisStep 1. Define industrydetermine boundariesidentify participantsStep 2. Collect data on competitorshistoric and recent performancecurrent strategy existing capabilities
6Competitor AnalysisKey Success Factors (HEV)Toyota vs CompetitorsTechnologies and MarketsFast evolving markets = sales grow large quicklyFast evolving technologies = technologies are constantly being replaced by new technologies
7Predicting Technological EvolutionStandard considerations supporting fast evolution: diversity of existing technologies, low variance in current relative performance, high variance in relative performance changes, high amount of exploration and use elsewhere (universities, other industries), scale and network economies for each technologyPredictive analytics based on scientific and patent citation patterns, … "One of the things you actually see in publication networks is that a lot of times when there is a major change to the field, there is a set of fields that are touching each other, so authors from different areas end up working together…"Calm Waters:Short‐Lived FMA unlikely (sustainablebut small advantage initially)Long‐Lived FMA very likely (incrementalimprovements support a uniqueposition)Supporting capabilities: Brand toconsolidate positionThe Market Leads:Short‐Lived FMA very likely (customerbase easily available)Long‐Lived FMA likely (incrementalimprovements support a contestedposition)Supporting capabilities: large‐scalemarketing, distribution and productionto capitalize on opportunityThe Technology Leads:Short‐Lived FMA very unlikely (smallopportunity and uncertain success)Long‐Lived FMA unlikely (later entrantshave technological opportunities todisplace leader)Supporting capabilities: Strong R&D, newproduct development to stay aheadRough Waters:Short‐Lived FMA likely (quick‐in quick‐outopportunity based on a brief advantage)Long‐Lived FMA very unlikely (too manyentrants trying too many approaches)Supporting capabilities: large‐scale

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture