competitive strategy n.
Download
Skip this Video
Download Presentation
Competitive Strategy

Loading in 2 Seconds...

play fullscreen
1 / 43

Competitive Strategy - PowerPoint PPT Presentation


  • 193 Views
  • Uploaded on

Competitive Strategy. Business-level [Competitive] Strategy. Since we’re in the XYZ industry, how do we compete?. Profit = (Price – Cost) x Qty. Cost or size advantage Differentiation or uniqueness advantage Marketing advantage Innovation advantage Bridge converging industries.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Competitive Strategy' - oleg-barnett


Download Now An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
business level competitive strategy
Business-level [Competitive] Strategy
  • Since we’re in the XYZ industry, how do we compete?

Profit = (Price – Cost) x Qty.

  • Cost or size advantage
  • Differentiation or uniqueness advantage
  • Marketing advantage
  • Innovation advantage
  • Bridge converging industries
slide3

Generic Business Level Strategies

Source of Competitive Advantage

Cost

Uniqueness

Low

Cost

Broad

Target

Market

Breadth of Competitive Scope

Narrow

Target

Market

low cost strategy operational advantage
Low-Cost Strategy - Operational Advantage

“Dell finds it hilarious that HP and Sony fund researchers to come up with new ideas.”

“Steamrollered by Dell”Newsweek, February 21, 2005

slide5

Value Chain and Low Cost Strategy

Firm Infrastructure

Human Resource Management

MARGIN

Technological Development

Procurement

Service

Inbound

Logistics

Marketing

& Sales

Outbound

Logistics

Operations

MARGIN

slide6

Inbound Logistics

Highly Efficient Systems to Link Suppliers’ Products with the Firm’s Production Processes

Located in Close Proximity with Suppliers

Inbound

Logistics

slide7

Efficient Plant Scale to Minimize Mfg. Costs

Timing of Asset Purchases

Policy Choice of Plant Technology

Organizational Learning

Operations

Relatively Few Management Layers to Reduce Overhead

Firm Infrastructure

Effective Training Programs to Improve Worker Efficiency and Effectiveness

Human Resource Management

MARGIN

Investments in Technology in order to Reduce Costs Associated with Manufacturing Processes

Technological Development

Procurement

Frequent Evaluation Processes to Monitor Suppliers’ Performances

Efficient Plant Scale to Minimize Manufacturing Costs

Delivery Schedule that Reduces Costs

Small, Highly Trained Sales Force

Service

Inbound

Logistics

Selection of Low Cost Transport Carriers

Products Priced to Generate Sales Volume

Outbound

Logistics

Timing of Asset Purchases

Operations

Operations

MARGIN

Policy Choice of Plant Technology

Efficient Order Sizes

Organizational Learning

slide8

Outbound Logistics

Firm Infrastructure

Delivery Schedule that Reduces Costs

Human Resource Management

Selection of Low Cost Transport Carriers

MARGIN

Technological Development

Efficient Order Sizes

Procurement

Frequent Evaluation Processes to Monitor Suppliers’ Performances

Interrelationships with Sister Units

Delivery Schedule that Reduces Costs

Small, Highly Trained Sales Force

Effective Product Installations to Reduce Frequency and Severity

of Recalls

Service

Outbound

Logistics

Selection of Low Cost Transport Carriers

Products Priced to Generate Sales Volume

Marketing

& Sales

Outbound

Logistics

MARGIN

Efficient Order Sizes

National Scale Advertising

Interrelationships with Sister Units

slide9

Marketing & Sales

Firm Infrastructure

Small, Highly Trained Sales Force

Human Resource Management

Products Priced to Generate Sales Volume

MARGIN

Technological Development

Procurement

Global Scale Advertising

Service

Marketing

& Sales

Outbound

Logistics

Marketing & Sales

Inbound

Logistics

Operations

MARGIN

slide10

Coca-Cola

Marketing & Sales

Firm Infrastructure

Small, Highly Trained Sales Force

Human Resource Management

Products Priced to Generate Sales Volume

MARGIN

Technological Development

Procurement

Global Scale Advertising

Service

Marketing

& Sales

Outbound

Logistics

Marketing & Sales

Inbound

Logistics

Operations

MARGIN

slide11

Service

Firm Infrastructure

Effective Product Installations to Reduce

Recalls

Human Resource Management

MARGIN

Technological Development

Procurement

Service

Service

Marketing

& Sales

Inbound

Logistics

Outbound

Logistics

Operations

MARGIN

slide12

Firm Infrastructure

Human Resource Management

MARGIN

Technological Development

Procurement

Procurement

Service

Procurement

Marketing

& Sales

Inbound

Logistics

Outbound

Logistics

Operations

MARGIN

Frequent Evaluation Processes to Monitor Suppliers’ Performances

Systems and Procedures to Find the Lowest Cost Products to Purchase Raw Materials

slide13

Firm Infrastructure

Human Resource Management

MARGIN

Technological Development

Technological Development

Procurement

Technological Development

Service

Easy-to-Use Manufacturing Technologies

Investments in Technology in order to Reduce Costs Associated with Manufacturing Processes

Outbound

Logistics

Inbound

Logistics

Marketing

& Sales

Operations

MARGIN

slide14

Firm Infrastructure

Human Resource Management

Human Resource Management

MARGIN

Technological Development

Human Resource Management

Procurement

Consistent Policies to Reduce Turnover Costs

Effective Training Programs to Improve Worker Efficiency and Effectiveness

Service

Outbound

Logistics

Inbound

Logistics

Marketing

& Sales

Operations

MARGIN

slide15

Firm Infrastructure

Firm Infrastructure

Human Resource Management

Support

Activities

MARGIN

Firm Infrastructure

Technological Development

Cost Effective MIS Systems

Simplified Planning Practices to Reduce Planning Costs

Relatively Few Management Layers to Reduce Overhead

Procurement

Service

Marketing

& Sales

Outbound

Logistics

Inbound

Logistics

Operations

MARGIN

slide16

Generic Business Level Strategies

Source of Competitive Advantage

Cost

Uniqueness

Cost

Leadership

Broad

Target

Market

Differentiation

Breadth of Competitive Scope

Narrow

Target

Market

slide18

Value Chain and Differentiation Strategy

Firm Infrastructure

Human Resource Management

MARGIN

Technological Development

Procurement

Service

Inbound

Logistics

Marketing

& Sales

Outbound

Logistics

Operations

MARGIN

slide19

Firm Infrastructure

Human Resource Management

MARGIN

Technological Development

Procurement

Service

Inbound

Logistics

Outbound

Logistics

Operations

MARGIN

Inbound Logistics

Superior handling of incoming raw materials to minimize damageand improve the quality of the final product

Inbound

Logistics

slide20

Firm Infrastructure

Human Resource Management

MARGIN

Technological Development

Procurement

Service

Inbound

Logistics

Outbound

Logistics

Operations

MARGIN

Operations

Consistent manufacturing of attractive products

Rapid responses to customers unique manufacturing specifications

Operations

slide21

Firm Infrastructure

Human Resource Management

MARGIN

Technological Development

Procurement

Service

Inbound

Logistics

Outbound

Logistics

Marketing

& Sales

Operations

MARGIN

Outbound Logistics

Accurate and responsive order processing procedures

Rapid and timely product deliveries to customers

Outbound

Logistics

slide22

Firm Infrastructure

Human Resource Management

MARGIN

Technological Development

Procurement

Service

Inbound

Logistics

Outbound

Logistics

Marketing

& Sales

Operations

MARGIN

Marketing & Sales

Strong Coordination among functions in R&D, Marketing and Product Development

Extensive personal relationships with buyers

Premium Pricing

Marketing & Sales

slide23

Firm Infrastructure

Human Resource Management

MARGIN

Technological Development

Procurement

Service

Inbound

Logistics

Outbound

Logistics

Marketing

& Sales

Operations

MARGIN

Service

Complete field stocking of replacement parts

Service

slide24

Firm Infrastructure

Human Resource Management

MARGIN

Technological Development

Procurement

Service

Inbound

Logistics

Outbound

Logistics

Marketing

& Sales

Operations

MARGIN

Caterpillar vs. Komatsu

Service

Complete field stocking of replacement parts

Service

slide25

Firm Infrastructure

Human Resource Management

MARGIN

Technological Development

Procurement

Service

Inbound

Logistics

Outbound

Logistics

Marketing

& Sales

Operations

MARGIN

Technological Development

Technological Development

Coordination among

R&D, marketing and product development

Investments in technol-ogies to produce highly differentiated products

Strong capability in basic research

slide26

Firm Infrastructure

Human Resource Management

Human Resource Management

MARGIN

Technological Development

Procurement

Service

Inbound

Logistics

Outbound

Logistics

Marketing

& Sales

Operations

MARGIN

Support

Activities

Human Resource Management

Compensation programs which encourage worker creativity and productivity

Extensive use of subjective performance measures

Superior personnel training

slide27

Firm Infrastructure

Human Resource Management

MARGIN

Technological Development

Procurement

Service

Inbound

Logistics

Outbound

Logistics

Marketing

& Sales

Operations

MARGIN

Firm Infrastructure

Support

Activities

Firm Infrastructure

Highly developed Information Systems to better understand customers’ purchasing preferences

A companywide culture

emphasizing quality and innovation

innovation cycle time slow is good unless you re the one driving innovation
Innovation Cycle TimeSlow is good, unless you’re the one driving innovation

Growth Rate

t1

t2

t3

Time

differentiated beef
Differentiated Beef

Bluegrass Meadows Beef

slide32

Generic Business Level Strategies

Source of Competitive Advantage

Cost

Uniqueness

Cost

Leadership

Broad

Target

Market

Differentiation

Breadth of Competitive Scope

Narrow

Target

Market

Cost

Leadership

Focused

Differentiation

converging industry advantage
Converging Industry Advantage

Entertainment

Wireless

Telephony

Palmtop

Computing

razor trials
Razor Trials
  • Overall impressions
  • Design features and shaving performance
    • Do they make a difference?
    • Do they create [real or perceived] value?
  • What are relevant “strategic dimensions” of razor industry?
    • What needs [real or perceived] do these dimensions fulfill?
strategic map wet razor industry
Strategic Map: Wet Razor Industry

Strategic Dimension 2

Strategic Dimension 1

the future how many is enough
The Future…How Many is Enough?

Is this our shaving destiny?

jellette s mp3 8 track razor
Jellette’s MP3 8-Track Razor
  • Eight blades and Built-in 8-Track MP3 Player

http://www.antonsledgehammer.com/jellette.htm

strategic map wet razor industry1
Strategic Map: Wet Razor Industry

Strategic Dimension 2

Strategic Dimension 1