Competitive-Strategy

CompetitiveStrategyandAdvantageObjectivesDescribethethreegenericcompetitivestrategiesDiscusscompetitorandindustrystructuralanalysisRelatetostrategicplanningframeworkDescribeamethodologyforidentifyingsourcesofcompetitiveadvantageLearnhowtomaximiseyourabilitytosupportcustomer'sstrategiesCompetitiveStrategyandAdvantageTheChoiceofCompetitiveStrategiesCompetitiveStrategyandAdvantageTwofundamentalquestions:AttractivenessofanindustryforprofitabilityCompetitivepositioningwithinanindustryBotharedynamicBothcanbeshapedbystrategyCompetitivestrategyisapowerfultoolinbusinessThreeGenericCompetitiveStrategiesCompetitiveStrategyandAdvantageCompetitiveadvantageisderivedfromVALUEValueisbasedon:LowerpricesforequivalentbenefitsUniquebenefitsthatoffsetapricepremiumOverallCostLeadershipFocusDifferentiationCostLeadershipStrategyCompetitiveStrategyandAdvantageAim-bethelowestcostproducerExploitallsourcesofcostadvantageRespondtomarketconditionswithlowerpriceorgreatervalueBeTHEcostleader-butmaintainqualityCostLeadership-highlycontestablepositionCostLeadership-ConditionsCompetitiveStrategyandAdvantagePrice-sensitivecustomersFewopportunitiestodifferentiateEaseofproductmanufactureandserviceHighmarketshare/economiesofscaleFavourableaccesstorawmaterialsLowcostlabouranddistributionInnovationandtecnologyGoodprotectionagainstallcompetitiveforcesDifferentiationStrategyCompetitiveStrategyandAdvantageCustomersperceiveuniqueorvaluabledifferencesQuality,reliability,durability,featuresImage,marketing,innovationValue-add,servicequality,distributionProductattractsorjustifiespremiumpriceCosteffectivenessisstillimportantStrongresearch,engineering,marketing,creativecapabilityDifferentiationopportunitiescanvaryGoodprotectionagainstcompetitiveforcesFocusStrategyCompetitiveStrategyandAdvantageIdentifyanarrowmarketsegmentEithercostleadershipordifferentiationadvantageAssumesCustomershaveunusualneedsProductionanddeliverysystemforthesegmentcanbeimprovedOthersmayfollowLaunchingpadforboldercompetitivepositionImplicationsoftheThreeGenericStrategiesCompetitiveStrategyandAdvantageAstrategyisessentialEachstrategyrequiresasustainedcommitmentEachstrategycarriesrisksCostLeadershipBurdenofmaintainingthestrategyVulnerabletochangeInattentiontoproductandmarketingqualityDifferentiationPremiumpricebecomestoohighImmitationbycompetitorsFocusCostadvantageinanarrowmarketcanbelimitedOutfocusedbycompetitorsSelectingCompetitiveStrategyCompetitiveStrategyandAdvantageAnalysecompetitiveenvironmentCompetitor'sstrategicmoveMarketsignalsAnalysetheindustryDiscretemarketsegmentsChangesinindustrystructureBrandname,service,productqualityWhichstrategicgrouptocompeteinSelectagenericcompetitivestrategybasedonIdentifiedtargetmarketsegmentsStrategicoptionsSWOTCompetitiveStrategyandAdvantageRationaleforSWOTAnalysisMarketingResearchOpportunities&ThreatsKeySuccessFactorsCompanyResearchStrengths&WeaknessesDistinctiveCompetenciesCompetitiveAdvantageEXTERNALINTERNALOpportunityandThreatAnalysisMacroenvironmentforcesDemographic/economicTechnologicalPolitical/legalSocial/culturalMicroenvironmentactorsCustomersCompetitorsDistributionchannelsSuppliersHowtoAssessOpportunitymatrixThreatmatrixSWOT-ExternalAnalysisCompetitiveStrategyandAdvantageEXTERNALANALYSISOpportunityMatrixOpportunitiesshouldbeclassifiedaccordingtotheirattractivenessandthesuccessprobabilitySuccessProbabilityAttractivenessLowLowHighHigh1234CompetitiveStrategyandAdvantageOpportunityMatrixOpportunitiesshouldbeclassifiedaccordingtotheirattractivenessandthesuccessprobability1.Pursuetheseopportunities2.Monitorforimprovement3.Monitorforimprovement4.ToominortoconsiderSuccessProbabilityAttractivenessLowLowHighHigh1234CompetitiveStrategyandAdvantageThreatMatrixThreatsshouldbeclassifiedaccordingtotheirseriousnessandprobabilityofoccurrenceProbabilityofOccurrenceSeriousnessLowLowHighHigh1234CompetitiveStrategyandAdvantageThreatMatrixThreatsshouldbeclassifiedaccordingtotheirseriousnessandprobabilityofoccurrence1.Preparecontingencyplans2.Monitor,intheeventtheygrowmorecritical3.Monitor,intheeventtheygrowmorecritical4.VeryminorandcanbeignoredProbabilityofOccurrenceSeriousnessLowLowHighHigh1234CompetitiveStrategyandAdvantageO&TAnalysisforaTVLightingEquipmentCompanyCompetitiveStrategyandAdvantage1.Companydevelopsadeviceformeasuringtheenergyefficiencyofanylightingsystem2.Companydevelopsamorepowerfullightingsystem3.CompanydevelopsasoftwaredisctoteachlightingfundamentalstoTVstudiopersonnel4.Companydevelopsamuchlowercostlightingsystem5.Competitordevelopsasuperiorlightingsystem6.Highercosts7.Majorprolongedeconomicdepression8.LegislationtoreducenumberofTVstudiolicensesWhichiswhich?OpportunitiesSuccessProbabilityAttractivenessLowLowHighHigh1234CompetitiveStrategyandAdvantage1.Companydevelopsamorepowerfullightingsystem2.Companydevelopsamuchlowercostlightingsystem3.CompanydevelopsasoftwaredisctoteachlightingfundamentalstoTVstudiopersonnel4.CompanydevelopsadeviceformeasuringtheenergyefficiencyofanylightingsystemAnOpportunityMatrixforaTVlightingequipmentcompanyThreatsPr