Topic2.StrategyRevisited

Upf international strategic management 2012 130 firm

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Unformatted text preview: ntiation is the norm •  Attractively large numbers of value-conscious buyers can be induced to purchase midrange products rather than •  The cheap basic products of low-cost producers or •  The expensive products of top-of-the-line differentiators •  In recessionary times! !!! Unless a company has the resources, know-how, and capabilities to incorporate upscale product or service attributes at a lower cost than rivals, adopting a best-cost strategy is ill-advised!!! 63 28/04/12 UPF - International Strategic Management 2012 127 Industry-level strategies a)  Positioning strategies b)  Adaptive strategies UPF - International Strategic Management 2012 128 Industry-level strategies b. Adaptive strategies Defenders Prospectors   seek moderate growth   seek fast growth   retain customers   emphasize risk taking innovation Analyzers Reactors   blend of defender & prospector strategies   use an inconsistent strategy   imitate other’s successes   respond to changes 64 28/04/12 UPF - International Strategic Management 2012 129 FIRM-LEVEL STRATEGIES Firm-level strategy addresses the question “How should we compete against a particular firm?” UPF - International Strategic Management 2012 130 Firm-level strategies a)  Basics of direct competition b)  Strategic moves of direct competition 65 28/04/12 UPF - International Strategic Management 2012 131 Firm-level strategies a. Direct competition •  Direct competition: The rivalry between two companies that offer similar products or services, acknowledge each other as rivals, and act and react to each other’s strategic actions •  Market commonality is the degree to which two companies have overlapping products, services, or customers in multiple markets •  Resource similarity is the extent to which a competitor has similar amounts and kinds of resources, that is, similar assets, capabilities, processes, information, and knowledge used to create and sustain an advantage over competitors UPF - International Strategic Management 2012 132 Firm-level...
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This note was uploaded on 10/18/2012 for the course BUSI 102 taught by Professor X during the Spring '12 term at Universitat Pompeu Fabra.

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