synergy among the industries or businesses chosen o The direction and scope of

Synergy among the industries or businesses chosen o

This preview shows page 2 - 3 out of 3 pages.

synergy among the industries or businesses chosen. o The direction and scope of an organization over the long term, which achieves advantage for the organization through its configuration of resources within a changing environment and to fulfill stakeholders’ expectations (Johnson and Scholes 2002) o Corporate strategy defines the markets and the businesses in which a company will operate. Corporate strategy is typically decided in the context of defining the company’s mission and vision which are statements of what the company does, why it exists, and what it intends to become. Competitive Strategy o Competitive strategy is about being different. It means deliberately choosing a
Image of page 2

Subscribe to view the full document.

183 different set of activities to deliver a unique mix of value. (Michael Porter 1996) o Competitive or business strategy defines how the company will compete in a given business. Competitive strategy hinges on a company’s capabilities, strengths, and weaknesses in relation to market characteristics and the corresponding capabilities, strengths, and weaknesses of its competitors. 5. According to Porter, competition is driven by five basic factors. Explain each. Threat of new entrants. Threat of substitute products or services. Bargaining power of suppliers. Bargaining power of buyers. Rivalry among existing firms. 1. Explain the concept of competitiveness of firms. Firm-level competitiveness is the ability of a firm to get customers to choose its products or services over competing alternatives on a sustainable basis. 2. Explain Porter’s three generic strategies. Low-Cost Leadership o Achieving the lowest-cost position possible in each and every operation of the firm that can lead to low-price competitive advantage Differentiation o Achieving uniqueness of a product or service that differentiates it from competing alternatives in terms of higher quality, sooner availability, better customer service, better features, etc. Focus o Achieving competitive advantage in a narrow industry segment in terms of cost advantage (cost focus) or differentiation (differentiation focus) 3. Explain how firms could create competitive advantage? By placing greater or lesser emphasis (allocation of resources, management time and attention) on specific value chain activities than competitors. By managing linkages among activities better than competitors do. By performing specific value-chain activities better (better management, more highly trained people, better equipment) or differently (using an alternative technology) than competitors do 4. How is technological leadership different from technological followership in terms of cost advantage and differentiation? Cost Advantage o Technological Leadership Pioneer the lowest-cost product design Be the first firm down the learning curve Create low-cost ways of performing value activities o Technological Followership Lower the cost of the products or value activities by learning from the leader’s experience
Image of page 3
  • Fall '17
  • Suin

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes