Combination Strategy: Firms integrations of various strategies to provide multiple types of
value to customers. This is the strategy that combines the Overall Cost Leadership and the
Usually firms use 3 approaches to combine th
II. Industry Life Cycle Stages: The stages of introduction, growth, maturity, and decline that
typically occur over the life of an industry.
There are 4 stages for every industry or every product that is called the industry or the product
VIDEO: Jeremy Clarkson driving the Reliant Robin.
Many brilliant minds designed this car for:
Lower taxes (motor cycle)
No need for drivers license
Not funny (sad and dangerous design) but yet very funny!
C. Focus Strategy: A firms generic strategy
B. Differentiation Strategy: A firms generic strategy based on creating differences in the firms
product or service offering by creating something that is perceived industry-wide as unique and
valued by customers. This strategy is achieved by creating a d
A. Overall Cost Leadership Strategy A firms generic strategy based on appeal to the
industry-wide market using a competitive advantage based on low cost. This strategy is achieved
by managing various relationships in the value chain.
To achieve Cost Leade
The Boston Consulting Group (BCG) developed the experience curve in 1968. Look at exhibit
2. Product Change Time: Lower the time it takes to switch plant line from five hours to
Example: NASCAR The CEO of General Mills, came up with an ide
How does Internet affect the 3 competitive strategies?
Overall Cost Leadership:
Online bidding and order processing eliminate the need for sales calls and minimize
Online purchase orders have made many transactions paperless, thu
Personalized online access provides customers with their own site within a site: in
which their prior orders, status of current orders, and requests for future orders are
processed directly on the suppliers website.
Online access to r
3. Maturity stage: The third stage of the product life cycle, characterized by (1) slowing demand
growth, (2) saturated markets, (3) direct competition, (4) price competition, and (5) strategic
emphasis on efficient operations. The stage that the demand f
After the Decline stage:
After the decline stage, it doesnt mean that the firm cannot do anything. Firms find a way to
turn-it-around. An example of this stage is the Apple and IBM Corporation.
Turnaround Strategy A strategy that reverses a firms declin