Strategic Management Chapter 1 Strategy is all “How” e.g. how to please your customers, how to compete against rivals, how to achieve certain performance targets. To achieve these Hows, firms need to specify what actions need to be taken. Actions to gain market share; actions to enter new market etc Competitive advantage : meeting customer needs either more effectively (higher value) or more efficiently (lower price) sustainable competitive advantage (lasting reasons to prefer a company’s products or services over those of competitors) Basic strategy approaches : low-cost provider, focused low-cost provider, best-cost provider, focused differentiation, broad differentiation (differentiate company product that will appeal to a broad spectrum of customers Managers will change the strategy according with “changing market condition, technology advancement, fresh move by competitors, shifting buyer needs, emerging market and new ideas for improving strategy The evolving nature of a company’s strategy means that the typical company strategy is a blend of (1) proactive (deliberate) , planned initiatives to improve the company’s financial performance and secure a competitive edge and (2) reactive (emergent) responses to unanticipated developments and fresh market conditions. The biggest portion of a company’s current strategy flows from previously initiated actions that have proven themselves in the marketplace and newly launched initiatives aimed at edging out rivals and boosting financial performance.
You've reached the end of your free preview.
Want to read all 5 pages?
- Spring '17