...environments using environmental scanning and objective 2.2, Determine relevant business competitive strategies are the easiest parts of the reading this week to understand. The team has decided that most difficult objective to understand is objective 2.4, choose measurement guidelines to verify strategy effectiveness. The team believes that objective 2.1 is easy to understand because it encompasses environmental scanning, this just takes a good look at the organization to help determine the strengths, weakness, and resources available internally. In the reading we began to understand that environmental scanning involves studying an organizations industry or business field along with opportunities and threats from an external perspective. Our team came to the conclusion that 2.1 is basically like the SWOT analysis. Companies should use this objective to scan its market for opportunities and make the essential adjustments or change to remain competitive. When the team analyzed objective 2.1, we had some question regarding how can an organization prepare for a new product, especially when it has not been launched. What are the steps and how are a company to prepare for a new or potential threat? Our Team C has analyzed the aforementioned questions and had developed solutions. One solution is that a company can launch a new product by just creating value from the onset to sustain a competitive advantage. Creating value is difficult sometimes especially, when...
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...You might consider developing competitive strategies by establishing your product attribute dominance relative to a specific competitor, or how to creating a lifestyle image better than competitors’ related to heavy user consumer images in your category. Competitive strategies also include advertising comparison by using advertising media tactic as your competition, the development of new product, packaging, merchandising techniques, or selling techniques to counter competitive strengths. Target Market Strategies Target market strategies are referring to how you market your products or services to specific target market based on your marketing objectives that defined the customers purchase behavior you want to target. For example, you may...
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...The Advantages of Competitive Strategies Abstract This paper will look at Competitive Strategies as they are described by Michael Porter. It will define and describe how Competitive Strategies create a competitive advantage. The Advantages of Competitive Strategies According to Michael Porter, an organization preparing to enter the market place must have in its core competencies the ability to create a competitive advantage (Robbins & Coulter, 2009). Yet, if an organization is to remain a viable entity throughout the turbulent terrain that accompanies the ever evolving market place, it will not suffice for an organization to just create or have a competitive advantage; the organization must be able to maintain a “long-term, sustainable competitive advantage” (Robbins & Coulter, 2009, p. 171). An organization can obtain this goal by discovering the niche that gives them a “distinctive edge” (Robbins & Coulter, 2009, p. 170). Robbins and Coulter noted in their 2009 work, that an organization’s “distinctive edge comes from the organizations core competencies because the organization does something that others cannot do or does it better than others can do it.” Once this distinctive edge is established, the organization now has a competitive advantage, “which is what sets an organization apart” (Robbins & Coulter, 2009, p. 170). An organization can gain a competitive advantage by providing its customers with some level of convenience. “Southwest Airlines”...
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...CHAPTER 5 THE FIVE GENERIC COMPETITIVE STRATEGIES - Which One to Employ? Copyright ®2012 The McGraw-Hill Companies, Inc. McGraw-Hill/Irwin 1. Understand what distinguishes each of the five generic strategies and why some of these strategies work better in certain kinds of industry and competitive conditions than in others. 2. Gain command of the major avenues for achieving a competitive advantage based on lower costs. 3. Learn the major avenues to a competitive advantage based on differentiating a company’s product or service offering from the offerings of rivals. 4. Recognize the attributes of a best-cost provider strategy and the way in which some firms use a hybrid strategy to go about building a competitive advantage and delivering superior value to customers. 5–2 Why Do Strategies Differ? Is the firm’s market target broad or narrow? Key factors that distinguish one strategy from another Is the competitive advantage pursued linked to low costs or product differentiation? 5–3 THE FIVE GENERIC COMPETITIVE STRATEGIES Low-Cost Provider Broad Differentiation Focused Low-Cost Focused Differentiation Best-Cost Provider Striving to achieve lower overall costs than rivals on products that attract a broad spectrum of buyers. Differentiating the firm’s product offering from rivals’ with attributes that appeal to a broad spectrum of buyers. Concentrating on a narrow price-sensitive buyer segment and on costs to offer a lower-priced product. Concentrating on a narrow buyer...
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...PP 11-17 www.iosrjournals.org Porter’s Generic Competitive Strategies Ritika Tanwar Assistant Professor Department of Commerce Dyal Singh College (M) Delhi University Abstract Generic Competitive Strategy: Basically, strategy is about two things: deciding where you want your business to go, and deciding how to get there. A more complete definition is based on competitive advantage, the object of most corporate strategy: “Competitive advantage grows out of value a firm is able to create for its buyers that exceeds the firm's cost of creating it. Value is what buyers are willing to pay, and superior value stems from offering lower prices than competitors for equivalent benefits or providing unique benefits that more than offset a higher price. There are two basic types of competitive advantage: cost leadership and differentiation.” Michael Porter Competitive strategies involve taking offensive or defensive actions to create a defendable position in the industry. Generic strategies can help the organization to cope with the five competitive forces in the industry and do better than other organization in the industry. Generic strategies include ‘overall cost leadership’, ‘differentiation’, and ‘focus’. Generally firms pursue only one of the above generic strategies. However some firms make an effort to pursue only one of the above generic strategies. However some firms make an effort to pursue more than one strategy at a time by bringing out a differentiated product...
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...STRATEGIC MANAGEMENT Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. This definition captures two main elements that go to the heart of the field of strategic management. First, the strategic management of an organization entails three ongoing processes: analysis, decisions, and actions. That is, strategic management is concerned with the analysis of strategic goals (vision, mission, and strategic objectives) along with the analysis of the internal and external environment of the organization. Next, leaders must make strategic decisions. These decisions, broadly speaking, address two basic questions: What industries should we compete in? How should we compete in those industries? These questions also often involve an organization’s domestic as well as its international operations. And last are the actions that must be taken. Decisions are of little use, of course, unless they are acted on. Firms must take the necessary actions to implement their strategies. This requires leaders to allocate the necessary resources and to design the organization to bring the intended strategies to reality. As we will see in the next section, this is an ongoing, evolving process that requires a great deal of interaction among these three processes. Second, the essence of strategic management is the study of why some firms outperform others. Thus, managers need to determine how a firm...
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...Strategy Writings[1] Dr. Mary A. Hamilton MBA, Ph.D. University of Rhode Island http://www.cba.uri.edu/faculty/hamilton/ Dr. Mark Lehrer Ph.D. University of Rhode Island Module #1: Introduction by Mark Lehrer 3 Module #2: Industry Analysis by Mark Lehrer 6 Rivalry 8 Entrants 9 Bargaining Power of Suppliers / Buyers 9 Two Cases: Breakfast Cereal and Personal Computers 9 Module #3: Value Chain Analysis by Mark Lehrer 12 Module #4: Industry Value Chains by Mark Lehrer 16 Module #5a: Generic Strategies (by Mary Hamilton) 16 Module #5b: Resource-Based View (by Mary Hamilton 16 Module #6: Industry Life Cycle (by Mark Lehrer) 16 Module #7: Competitive Strategy by Mary A. Hamilton 16 Theory 16 Types of Competitive Strategy 18 Offensive strategies 18 Defensive strategies 19 Collusive Strategies 19 Strategic alliances 20 Application 21 Module #8: Business Models by Mark Lehrer 23 Beyond Strategizing 23 Business Models: A Typology 23 Business Models Beyond the Internet 25 Module #9: Corporate Level Strategy by Mark Lehrer 28 Module #10: International Strategy by Mary A. Hamilton 28 Global Opportunities 28 International Strategic Orientation 29 National Advantages 31 Mode of Entry 32 Competitive Performance 33 Module #1: Introduction by Mark Lehrer How can one introduce such a multifaceted subject as strategy? What is strategy? Why does it matter? The concept of strategy comes from...
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...these resources. While the resource perspective varies among the different articles, the unifying themes are: the optimum utilization of resources drives above normal performance, utilization of resources would adapt to changing environments, and a unified strategy must exist to manage the resources. According to the resource based school, Barney articulates his vision of resources as comprising of the financial, physical, human, and organizational attributes of the firm. Similar to the other articles, Barney states that above normal performance could be derived from competitive advantages resulting from one or more of a firm’s resources and capabilities. In contrast to the other articles, Barney states that in order for a firm’s resource to lead to competitive advantages, it must add value, be rare, be non-imitable, and be implemented in a well-organized fashion. Barney does not elaborate on the process of acquisition and development of valuable resources, but focuses on what makes a resource valuable. In the same vein, Peteraf states that the appropriate utilization of resources could lead to a sustained competitive advantage. Like Barney, she states four conditions by which a resource could lead to a competitive advantage; however, Peteraf expands her analysis to the acquisition/development of resources and maintenance of...
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...Competitive Strategies and Government Policies Paper Maryna Lambropoulos, Trenton Acrey, Jose Esquivel & Jorge Benitez ECO/365 January 7, 2015 Matthew Mulyanto Competitive Strategies and Government Strategies Paper Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified financial services company with $1.6 trillion in assets. Founded in 1852, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,700 locations, approx. 12,500 ATMs, online banking and asset management at wellsfargo.com, and mobile apps for mobile devices so you can access your accounts on the go. With headquarters located in San Francisco, Wells Fargo has more than 265,000 team members in 36 countries across our approximately 90 businesses. At the end of the third quarter 2014, Wells Fargo ranked fourth in assets among United States banks and was the world’s most valuable bank by market capitalization. In 2013, Euromoney named Wells Fargo “Best Bank” in its Global Awards for Excellence, the first time a United States based bank has won the top award. Wells Fargo Bank is one of the largest banks in the United States. Prior to 2008 through 2010, WFB had many United States based competitors, but that number has decreased due to bank failures and mergers. The number of United States Banks fell by 12% between December 2006 and December 2010. During that same period, U.S. deposits held by the 10 largest banks rose from...
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...Competitive Strategies Case Study Assignment 2 STUDENT NAME: Professor: Dr. Wright BUS 508: Contemporary Business Raleigh, NC May 5, 2013 Determine how each corporate differs from the other The corporate cultures of the two companies are very different. One example. GM pulled its ads from Face book. Ford is doing more with Facebook. Another, GM bailed out by the government, Ford weathered the storm. The social media strategy of each company is extremely interesting. GM is going to go the traditional route. Ford has embraced the tools of social media to connect with its customers. I think that gives Ford a competitive edge. General Motors Company is an American multinational automotive corporation headquartered in Detroit, Michigan, and among the world's largest automakers by vehicle unit sales, employing 202,000 people and doing business in some 157 countries. They also have five different business segments. They also provide on star vehicles safety, security and information system. As the second-largest automobile company in the world, Ford Motor Company represents a $164 billion multinational business empire. Known primarily as a manufacturer of automobiles, Ford also operates Ford Credit, which generates more than $3 billion in income, and owns The Hertz Corporation, the largest automobile rental company...
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...The sessions are interactive and use a variety of learning methodologies including case studies, lectures, role plays, group activities. The forum also provides a medium for senior executive networking. The response from the industry has been overwhelming and has encouraged us to regularly organize the Chief Executive forum. The high standards set in the past push us to strive for the Chief Executive Forum to be rigorous and relevant to business context in future. Month July Programme A Marketer's View of Competitive Strategy Director PROF. JOHN A. CZEPIEL New York University, Leonard N. Stern School of Business Place Delhi Hyderabad Chennai Bangalore Delhi Pune Mumbai Bangalore Delhi Hyderabad Bangalore Chennai Date 12th July ’10 14th July ’10 16th July ’10 19th July ’10 20th August ’10 16th August’10 19th August ’10 17th August ’10 9th September’10 10th September’10 13th September’10 14th September’10 August Retail Competition: Strategies PROF. VISHAL SINGH in the Changing Retail New York University, Leonard Landscape N. Stern School of Business September Financial Risk Managment and the 2008 financial Crisis PROF. PIETRO VERONESI University...
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...Competitive Strategies and Government Policies Learning Team A ECO/365 Competitive Strategies and Government Policies To call the automobile the single most important contribution to fuel the wheels of industry for the last century might be an understatement. Not only did this new invention and the market it created change the literal face of this nation, it created hundreds of new markets and industrial opportunities for a rapidly growing country (U.S. Department of Transportation). In the driver’s seat of this revolutionary new world was Henry Ford and Detroit; also known as the motor city. The landscape of the auto industry has seen significant changes over the century, be it mergers, new players, buy outs, labor disputes, federal loans, federal regulations, economic booms, and economic disasters. The industry and its ever changing climate has been endured and survived by 3 major American companies, a handful of companies originating in Japan, and a few higher-end manufactures in Europe. The industry has seen its fair share of changes over the decades, mostly consumer driven, but not limited to. The highway system and most of the safety innovations we have seen over the century have been direct results of the automobile industry (FEDERAL MOTOR VEHICLE SAFETY STANDARDS AND REGULATIONS U.S., 2011). The automobile industry today is much the same, with companies competing to provide consumers with the lasts in driving technology. One of the biggest variables...
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...Competitive Strategies with Mobile Phone Providers ECO/365 Competitive Strategies with Mobile Phone Providers The following report details cellphone analysis that will deal with cellphone services. In order for the different existing cellphone providers such as AT&T, Sprint, Verizon, T-Mobile, and Metro PCS to survive in the business market, they need to implement competitive strategies. It will establish stability and profitability in the long term. The key personnel and maintain for each service is the customer's loyalty. Mobile phone providers can have a challenge entering in today’s market. For a new company to be successful they would need to find a way to give the customers phones and service cheaper than the other companies or have a new innovative phone available. T-Mobile does not require their customers to have a contract making the upgrade at the contract renewal time obsolete. The purchase of the initial phone when signing up with T-Mobile is where they make most of their money. The monthly plans with T-Mobile are not exorbitantly priced giving them an edge on the other phone companies. T-Mobile was also the first to give customers access to international services for free. A new smaller provider can be merged with one of the larger companies easily. It would be a horizontal merger between these companies because they provide the same services. In 2004 AT&T merged with Cingular Wireless. This merger gave Cingular customers a wider network to use...
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...Competitive Strategies: Apple Vs. Microsoft Paul Brouse BUS 508 February 4, 2013 Competitive Strategies: Apple Vs. Microsoft Since the mid-80s Apple and Microsoft have been locked in a heavy weight battle to become king in the technology industry. While Apple released its first Macintosh computer in 1984, Microsoft followed shortly after with the release of Windows 1.0 just a year later. The two struggled to gain a foothold on the market, and have been trying to outdo one another ever since. Corporate Culture Apple has long been known to have a very uncompromising corporate culture. For years Steve Jobs ran the company as a perfectionist who, while very successful, was not typically willing to alter his vision in any way. Where some corporations are a collaboration between the ideas of many individuals with some give and take, Apple products were almost one hundred percent Steve Jobs uncompromising vision. With Microsoft Windows maintaining a huge market share in the personal computing business, Apple never swayed from the concept of putting their Mac OS only on Apple hardware, instead of licensing it to various hardware manufacturers so that it may be on a wide variety of systems. Apple has always been about the vision of Steve Jobs, and the man was almost more of a designer than a technology guru, which is an indication of why the Apple iPhone with its superior design has been so successful. Another noticeable concept of Apple’s corporate culture is its secrecy...
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...Assignment 1 – Competitive Strategy Group Members: Abhishek Rana, Matthew Ross, Michele De Simon, Mohit Kumar How would the different theories discussed by Conner (1991) explain differences in performance among firms? Conner has discussed the differences in performances amongst firms by analyzing the following list of theories: 1. Neo-Classical Theory: Performance is the same across the industry because the industry is characterized by ‘Perfect Competition’. Perfect competition comprises of the following assumptions – Larger number of buyers and suppliers, Homogeneity of the demand, Mobility of resources and Rationality of complete market information. Therefore in such a market setting firms cannot achieve economic profit. 2. Bain-type IO Theory: Above normal performance could be achieved only through collusion encouragement, which in turn leads to monopoly. In an industry characterized by collusion and monopoly, the largest firm has the power to set prices and expand its own market share further, leading to above normal performance. 3. Schumpeter Theory: The core of this theory states that the performance of a firm is driven by Innovation. Monopoly is a more favorable condition for process of innovation because it decreases inherent investment risks involved. Through innovation a firm can achieve indistinctive competence and edge over competitors leading to higher returns and performance. 4. Chicago Theory: This theory is driven by efficiency in production...
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