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Week_5_-_Competitive_positioning[1]

Week_5_-_Competitive_positioning[1] - Bus 690 Business...

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1 1 BUS 690 Bus 690: Business Policy and Strategic Management Th: 3:35 – 6:20p.m. BUS 218 2 BUS 690 G. Desa Agenda – 2/26 Business-Level Strategy Competitive Positioning 3 BUS 690 Agenda Case: Southwest Airlines Current Events Chapter 5: Competitive Strategy 4 BUS 690 Business-Level Strategy Corporate-Level Strategy Introduction to Strategy External Environment Internal Environment Competitive Positioning Competitive Dynamics (Rivalry) Innovation & Entrepreneurship Diversification Mergers & Acquisitions Alliances International Strategy Corporate Governance Where we are… 5 BUS 690 G. Desa Learning Objectives • Understand: – What competitive dynamics are and how they influence firm performance. – Firm characteristics that influence their likelihood and ability to initiate and respond to competitive moves. – The advantages and disadvantages of first-movers and later entrants. 6 BUS 690 G. Desa Competitive Dynamics The series of advantage-seeking actions and responses taken by firms competing within a particular industry.
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2 7 BUS 690 G. Desa Competitive Dynamics A firm’s strategic conduct is dynamic in nature – Actions taken by one firm elicit responses from competitors – Competitive responses lead to additional actions from the firm that acted originally 8 BUS 690 G. Desa Competitive Dynamics Actions and responses shape the competitive positions of each firm’s business level strategy Effectiveness of strategy depends not just on initial move
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