...Comp7580 E-Transformation in Business Dr. Alfredo Milani Reference: Dave Chaffey. E-Business and E-Commerce Management. 2nd Edition. Prentice Hall, 2004, Chapter 4, 5. K.C. Laudon, and J.P. Laudon. Management Information Systems: Management the Digital Firm. 8th Edition. Prentice Hall, 2004, Chapter 3. Lecture 3 E-business Strategy Learning objectives Follow an appropriate strategy process model for e-business; Apply tools to generate and select e-business strategies Comp3710/Comp7580 3 Michael Porter on the Internet ‘The key question is not whether to deploy Internet technology – companies have no choice if they want to stay competitive – but how to deploy it.’ Porter, M. (2001) Strategy and the Internet, Harvard Business Review, March 2001, 62–78. Comp3710/Comp7580 4 Strategy What is a strategy? • • • • ‘Defines how we will meet our objectives’ ‘Sets allocation of resources to meet goals’ ‘Selects preferred strategic option to compete within a market’ ‘Provides a long-term plan for the development of the organization’ Strategy: A broad-based formula for how a business is going to compete, what its goals should be, and what plans and policies will be needed to carry out those goals Comp3710/Comp7580 5 E-commerce strategy (e-strategy) The formulation and execution of a vision of how a new or existing company intends to do business electronically Comp3710/Comp7580 6 Different forms of organizational strategy Comp3710/Comp7580 ...
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...Management Models... 150 Slides Product Promotion Price Customer Service Place People Processes Powered by www.drawpack.com. All rights reserved. Key Words... Break-even – Financing Life Cycle – Economies of Scale – Elasticity – Sales Cycles – Market Potential – Portfolio Matrix – Product Model – Four P’s – Push/Pull Strategy – Marketing Mix – PDCA Cycle – SWOT – Value Chain – Ansoff Matrix – BCG Matrix – 7-S Model – Core Competencies – GE Business Screen – Nine Cell Industry – Risk/Reward Diagram – Porter’s Five Forces – Industry Competition – Generic Strategies – Geobusiness Model – Porter’s Diamond – Matrix Design – PIMS – Leavitt’s Diamond – Belbin’s Team Roles – Theory X/Y – Maslow’s Hierarchy – Herzberg’s Theory – Cultural Web – Pareto Curve – CIM Concept – Value Drivers Markets and Structure of Flow Resources Resources Money Resource markets Money Taxes, goods Services, money Services, money Manufacturer markets Taxes, goods Government markets Taxes Services Consumer markets Services, money Taxes, goods Money Goods and services Middlemen markets Money Goods and services A Company‘s Macroenvironment MACROENVIRONMENT IMMEDIATE INDUSTRY & COMPETITVE ENVIRONMENT Suppliers Substitute COMPANY Rival Firms Buyers New Entrants The Economy at large Break-even Point Value $ Sales Profit Break-even Point Variable costs Total costs Current sales level Fixed costs 0 0 Units sold Break-even...
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...A CRITIQUE OF PORTER’S COST LEADERSHIP AND DIFFERENTIATION STRATEGIES Y. Datta Ph.D., State University of New York at Buffalo Professor Emeritus College of Business Northern Kentucky University Highland Heights, KY 41099 (USA) 7539, Tiki Av. Cincinnati, OH 45243 USA Tel: (513) 984-1032 [Home] Fax: (513) 984-1032 E-Mail: datta@nku.edu A paper accepted for presentation at the 9th Oxford Business & Economics Conference to be held in Oxford, England, June 22-24. Table of Contents A Critique of Porter’s Cost Leadership and Differentiation Strategies 4 ABSTRACT 4 Key Words 4 INTRODUCTION 5 COST LEADERSHIP STRATEGY 5 Major Reliance on Modern Capital Equipment 7 Relying on the Experience Curve to Underprice Competition Risky 7 A Cost Leader Cannot Ignore Differentiation 8 No Such Thing as a "Commodity": Everything Can Be Differentiated 9 High Market Share a Prior Condition for Cost Leadership? 10 Porter Identifies High Market Share with Cost Leadership Strategy 10 Differentiation--Not Cost Leadership Alone--Behind GM’s and Whirlpool’s Success 11 “Low-Cost” or “Low-Price” Strategy? 12 Thompson and Strickland’s Low-cost Provider Strategy 14 Internal Orientation of Cost Leadership Strategy 14 DIFFERENTIATION STRATEGY 15 Superiority of Differentiation over Cost Leadership Strategy 16 Porter: Differentiation and High Market Share Incompatible 17 Differentiation Compatible with High Market Share--and Low Cost...
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...ANALYSIS OF MICHAEL PORTER’S GENERIC STRATEGIES AND ITS USAGE IN A GLOBALIZED BUSINESS ENVIRONMENT THESIS - BACHELOR HONOURS IN BUSINESS ADMINISTRATION DIANA MARIA CAMACHO ARIAS TYPE OF DOCUMENT: DISERTATION TO OBTAIN THE DEGREE OF BACHELOR HONOURS IN BUSINESS ADMINISTRATION APPROVED BY UNIVERSIDAD DEL ROSARIO – FACULTAD DE ADMINISTRACION INSTITUTION: ÉCOLE INTERNATIONALE DE MONTPELLIER FRANCE, MONTPELLIER, MAY OF 2009 ANALYSIS OF MICHAEL PORTER’S GENERIC STRATEGIES AND ITS USAGE IN A GLOBALIZED BUSINESS ENVIRONMENT THESIS - BACHELOR HONOURS IN BUSINESS ADMINISTRATION DIANA MARIA CAMACHO ARIAS TYPE OF DOCUMENT: DISERTATION TO OBTAIN THE DEGREE OF BACHELOR HONOURS IN BUSINESS ADMINISTRATION APPROVED BY UNIVERSIDAD DEL ROSARIO – FACULTAD DE ADMINISTRACION TUTOR: TIDIANE AW INSTITUTION: ÉCOLE INTERNATIONALE DE MONTPELLIER FRANCE, MONTPELLIER, MAY OF 2009 DEDICATION I dedicate this dissertation to every person that has allowed it to be possible with the critics, to the teachers and tutors that have awaked in me the interest in this topic and also the passion for the businesses strategy, to my family that has always supported me to achieve my goals and to develop myself as a human being and also as a professional, and finally but not less important to Gabriel that has been a huge support to bring this dissertation to a satisafactory end. ACKNOWLEDGEMENTS This thesis would not have been possible without the generous assistance of the following...
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...QuickMBA / Strategy / Porter's 5 Forces Porter's Five Forces A MODEL FOR INDUSTRY ANALYSIS The model of pure competition implies that risk-adjusted rates of return should be constant across firms and industries. However, numerous economic studies have affirmed that different industries can sustain different levels of profitability; part of this difference is explained by industry structure. Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates. Diagram of Porter's 5 Forces | SUPPLIER POWER Supplier concentration Importance of volume to supplier Differentiation of inputs Impact of inputs on cost or differentiation Switching costs of firms in the industry Presence of substitute inputs Threat of forward integration Cost relative to total purchases in industry | | THREAT OF NEW ENTRANTS Barriers to Entry Absolute cost advantages Proprietary learning curve Access to inputs Government policy Economies of scale Capital requirements Brand identity Switching costs Access to distribution Expected retaliation Proprietary products | | THREAT OF SUBSTITUTES -Switching costs -Buyer inclination to substitute -Price-performance trade-off of substitutes | | BUYER POWER Bargaining leverage Buyer volume Buyer information Brand identity Price sensitivity...
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...Express Scripts pharmacy provider network on December 31, 2011 poses a threat to revenues and profits for 2012 and future fiscal periods. This analysis will discuss Walgreen’s business strategy, provide a current financial analysis of the company, risks associated with the company, address prospective analysis of Walgreens and provide a decision on future investments in the company stock. Business Strategy Analysis A differentiation strategy serves a small market niche with products that are designed to appeal to the unique preferences and needs of the well-defined group of buyers. Companies that use differentiation strategies often enjoy high degrees of customer loyalty which discourages other firms from competing directly. This strategy usually targets customers who are not concerned about the price. Differentiation can reduce rivalry with competitors, and fight off the threat of substitute product because customers are loyal to company’s brand (Anzeletti, 2009). However, successful differentiation strategies require a number of costly activities, such as extensive advertising. Companies that purse a differentiation strategy need strong marketing abilities. One good illustration of a company that benefits from a differentiation strategy is Walgreens. Walgreens uses a differentiation business strategy. Walgreens together with its subsidiaries operates a chain of drugstores in the United States. The company strives to offer a merchandise mix in line with this focus, providing...
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...industry firstly, the main environmental forces currently affecting the industry through PEST analysis. Secondly, the implications of the changes in business environment that is internal factors through porter's five force theory. Finally, the use and limitations of the tools applied to solve case are discussed. ORIGIN AND EVOLUTION The present pharmaceutical industries are non-assembled and more of competitive but it had emerged in early 19th century in the Rhine valley near Basel Switzerland where dyestuffs were found to have antiseptic properties. Companies like Hoffman-la rochy, Sandoz, Novartis are all started as Rhine based family dyestuff and chemical companies, which are still doing tremendous business even to day. Slowly these chemical companies started making pharmaceuticals and synthetic chemicals and evolved as global players. In early 1940's the industry showed drastic changes such as introduction of penicillin and other drugs. In 1960's industry growing rapidly with the setting up of R&D not only this economies prospered by the spending on health care in same period. In 1970's industry showed major development but a strong regulatory controls also came into existence with this development, and this regulatory controls had removed the rule of permanent patent to some fixed period which resulted in birth of branded generics. ENVIRONMENTAL FORCES...
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...A CRITIQUE OF PORTER’S COST LEADERSHIP AND DIFFERENTIATION STRATEGIES Y. Datta Ph.D., State University of New York at Buffalo Professor Emeritus College of Business Northern Kentucky University Highland Heights, KY 41099 (USA) 7539, Tiki Av. Cincinnati, OH 45243 USA Tel: (513) 984-1032 [Home] Fax: (513) 984-1032 E-Mail: datta@nku.edu A paper accepted for presentation at the 9th Oxford Business & Economics Conference to be held in Oxford, England, June 22-24. Table of Contents A Critique of Porter’s Cost Leadership and Differentiation Strategies 4 ABSTRACT 4 Key Words 4 INTRODUCTION 5 COST LEADERSHIP STRATEGY 5 Major Reliance on Modern Capital Equipment 7 Relying on the Experience Curve to Underprice Competition Risky 7 A Cost Leader Cannot Ignore Differentiation 8 No Such Thing as a "Commodity": Everything Can Be Differentiated 9 High Market Share a Prior Condition for Cost Leadership? 10 Porter Identifies High Market Share with Cost Leadership Strategy 10 Differentiation--Not Cost Leadership Alone--Behind GM’s and Whirlpool’s Success 11 “Low-Cost” or “Low-Price” Strategy? 12 Thompson and Strickland’s Low-cost Provider Strategy 14 Internal Orientation of Cost Leadership Strategy 14 DIFFERENTIATION STRATEGY 15 Superiority of Differentiation over Cost Leadership Strategy 16 Porter: Differentiation and High Market Share Incompatible 17 Differentiation Compatible with High Market Share--and Low Cost...
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...of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 15, Issue 1 (Nov. - Dec. 2013), 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...
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...We are all blind people and strategy formulation is our elephant. Since no one has had the vision to see the entire beast everyone has grabbed hold of some part or the other and “railed on in utter ignorance” about the rest Course Title: Bachelor in business studies Module : MGT 330 Module title: Business Strategy Submitted to : Mr Mervyn Sookun Submitted by : Madan Gupta Student Id no: 860199. Contents Page No. 1. Core of the assignment. 3 2 Introduction 4-5 3Porters Generic Strategy 6 4 An Empirical Analysis 7 5. Role of different Schools of Strategy 8-12 6.Advantages & Disadvantages of Strategy 13 7. Conclusion 14 8. Reference 15 : Core Of Assignment: This assignment is designed on the strategy formation and strategic management. The statement of the assignment have been taken from the Strategy Safari (2001) written by H. Mintzberg. As the assignment progresses we will discuss how the strategy formation takes place where the writer comapares it with the elephant. According to the writer We are all blind people and the strategy formation is our elephant and because...
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...Sklair and David Miller Critical Social Policy 2010 30: 472 DOI: 10.1177/0261018310376804 The online version of this article can be found at: http://csp.sagepub.com/content/30/4/472 Published by: http://www.sagepublications.com Additional services and information for Critical Social Policy can be found at: Email Alerts: http://csp.sagepub.com/cgi/alerts Subscriptions: http://csp.sagepub.com/subscriptions Reprints: http://www.sagepub.com/journalsReprints.nav Permissions: http://www.sagepub.com/journalsPermissions.nav Citations: http://csp.sagepub.com/content/30/4/472.refs.html >> Version of Record - Nov 1, 2010 What is This? Downloaded from csp.sagepub.com by guest on May 2, 2012 E S L I E S K L A I R L London School of Economics D A V I D M I L L E R University of Strathclyde Capitalist globalization, corporate social responsibility and social policy Abstract This article outlines how the twin crises of capitalist globalization – of class polarization and ecological unsustainability – combine to produce the need for Corporate Social Responsibility (CSR) to attempt to bridge the gap between the rhetoric and reality of corporate conduct. The first section outlines how CSR relates to capitalist globalization and how it is integrated into the activities of the Transnational Capitalist Class (TCC). The role of CSR in relation to social policy is examined next leading on to an account of the uses to which CSR is put in policy discourse, particularly...
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...Executive Summary Originally, data and information was intensively collected manually and periodically due to the volume. With the help of information systems, such intensive manual labor in my opinion is now almost a thing of the past. This is not to say that there are still no data or information that will need to be gathered manually. In this information age of ours, a period when information is power, technology is such an important part of most organizations. The use of technology is not only limited to technology companies to operate effectively as almost all organizations; small and large, struggles with the management of information systems on a daily basis in one way or another. Management information system is “both a business discipline that deals with the use of information technology—or computers, computer technology, or simply technology—and an academic field of study” (http://highered.mcgraw-hill.com/). With the amount of information in existence today, Information systems have become a part of us. An information management system provides information that is necessary to the effective and efficient management of an organization, its activities and its people. Managers and senior level management must be able to first understand their organization before they can decide which information system will best suit their purpose and help in the achievement of their organizational goals and objectives. This means that information systems obtained in organizations...
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...and consumer products which have been developed over the last century and companies in this vertical expend significant resources on the research and development of them. The main objective in the industry is to improve the quality of life for everyone. There are three main types of pharmaceutical companies: large, small, and generic. Large pharmaceutical companies are established firms that have many approved drugs already on the market. Examples would be Merck, Bayer, Johnson & Johnson, and GlaxoSmithKline. These companies often have significant numbers of Research and Development (R&D) laboratories and manufacturing plants globally. In contrast, smaller pharmaceutical companies are usually more research focused, and often do not have any drugs on the market. Smaller companies in the pharmaceutical industry can also operate as contract manufacturers or contract research firms. Lastly, generic companies, manufacture drugs that are no longer protected by patents. Generic companies are the manufacturers that produce off-brand drugs that consumers may find listed on a pharmacy’s or insurance’s discount prescriptions list, e.g. Wal-Mart’s $4 Generic Rx list. Because their products are established drugs, they devote fewer resources to...
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...Swapnil Wagh-53 Swati Agrawal-54 (PGDM-B) Group-11 CONTENTS 1. History & Introduction 2. Industry Analysis 2.1 Porter’s Five Forces Framework 2.2 Complementors & Strategic Groups 2.3 Life Cycle Analysis 2.4 SWOT Analysis 2.5 PESTEL Analysis 3. Internal Analysis 3.1 Resource Based View Analysis 3.2 VRIO Framework 4. Business Strategy 5. Tetra-Threat Framework 6. Conclusion Porter’s Five Forces Analysis Threat of New Entrants (Low) 1) High Industry Profitability (+) 2) Large fixed costs (-) 3) Economies of scale in research, chip fabrication, consumer marketing etc. (-) The microprocessor market is characterized by short product life cycles, rapid advances in product design, competitive pricing and process technology. This means if firms want to be competitive in the industry they have to invest large amounts of fixed cost to create specialized facilities for production as well as continuously devote large amounts of funds to research and development in order to keep producing top-of-the-line products. Supply side economies of scale give large microprocessor firms advantages in R&D. Since the cost of creating one extra microprocessor is relatively insignificant the larger production size allows R&D costs to be distributed over a larger number of chips. 4) Learning economies & requirement of advanced technologies (-) Learning economies also provide barriers due to the exclusive...
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...3 Organizational Strategy, Information Systems, and Competitive Advantage When Dee asked her boss for a budget to create her blog, he responded by asking the questions at the start of Chapter 2 (page 20). Using the knowledge in that chapter, she was able to respond, and he tentatively approved her budget request. Before he did so, however, he said that he wanted a memo from her on how her blog would provide a competitive advantage. He wanted that memo so that he could include it in the documentation he would use to justify the expense to his manager. The knowledge presented in this chapter will help her write that memo. An optional Extension for this chapter is CE3, “Knowledge Management and Expert Systems.” Study Questions Q1 Q2 Q3 Q4 Q5 Q6 How does organizational strategy determine information systems structure? What five forces determine industry structure? What is competitive strategy? What is a value chain? How do value chains determine business processes and information systems? How do information systems provide competitive advantages? How does the knowledge in this chapter help Dee and you? 37 38 Chapter 3 Organizational Strategy, Information Systems, and Competitive Advantage Industry Structure New Vendors Competitive Strategy Value Chains Business Processes Information Systems Threat of new entrants Lowest cost across the industry Customers Better product/service across the industry Better product/service within...
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