MNGT 4800 Chapter 6 and 7 notes
MNGT 4800 Chapter 6 and 7 notes MNGT 4800
Popular in Strategic Management (Section 009)
Popular in Business, management
This 4 page Class Notes was uploaded by Peyton Oglesby on Sunday February 14, 2016. The Class Notes belongs to MNGT 4800 at Auburn University taught by Dr. Peter Stanwick in Spring 2016. Since its upload, it has received 27 views. For similar materials see Strategic Management (Section 009) in Business, management at Auburn University.
Reviews for MNGT 4800 Chapter 6 and 7 notes
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 02/14/16
MNGT 4800 Chapter 6 Business-Level Strategy How to compete for advantage: Who? - Which consumer segments are we going to serve? What? - Desires, wishes, and needs do we aim to satisfy? Why? - Do we want to satisfy said consumers needs/wants? How? - Do we plan to satisfy the needs/desires? Strategic Position How to compete-two primary competitive levers: Value Cost (V-C) Economic Value Created The greater the economic value created the better the competitive advantage Strategic Trade-offs Higher value means higher cost Value Gap= Value Creation-Costs Generic business strategies Differentiation HIGHer value and unique features Cost-Leadership Comparable value and lower cost Scope of Competition Narrowly focused Broad focus Value drivers that increase value and decrease cost Unique product features Superb customer service Customization options Complements Advantage of “Big Box” retailers Maximizing scale and inventory lowers costs Cost Drivers Learning Curves Learning by preforming As a company gets older they get the benefits of the learning curve Experience Curves As a company progresses it gets larger and there are more economies of scale Integration Strategy Cost leadership AND differentiation Trade-offs between differentiation & low cost Value & Cost Drivers of Integration o Economies of scope o Quality o Structure, culture, & routines o Innovation Corporate Level Integration Strategy Creates a competitive advantage by beating rivals on product features while offering a better price o Better price doesn’t mean lowest price, better price means relative to the value you’re offering MNGT 4800 Chapter 7 Competition is driven by innovation Invention is DISCOVERY of new products or ideas Innovation is the COMMERCIALIZATION of an invention Three concepts that create innovation: Novel Useful Implementation Four Stages of industry development 1. Introduction a. Few innovators in the market 2. Growth stage a. Early majority buyers increase growth b. Skills move to manufacturing and marketing c. Efficient and inefficient thrive 3. Maturity a. Oligopoly is dominant industry structure during this stage b. Late majority buyers are more limited market growth c. Cost leadership companies tend to drive the industry 4. Decline a. Laggards are buyers and market size shrinks b. Excess industry capacity and 4 strategic options i. Consolidate-buy rivals ii. Maintain-stay and continue marketing iii. Harvest-stay with limited investments iv. Exit-inefficient firms get out of the industry Strategic entrepreneurship “Entrepreneurs are the change agents for creative destruction” o Create and exploit new opportunities Different types of innovation Incremental- steady improvement of a product or service Radical- novel methods or materials serving new markets o This is often new firms Architectural-reconfigure and redesign known features to create new markets Disruptive-novel technologies serving existing markets Periods of paradigm change Discontinuities--These are periods when underlying standards change o Paradigm shift o Incumbents need “absorptive capacity” o Discontinuity examples: Music records to CDs to MP3 Cameras film to digital Airplanes propellers to jets Hyper-competition- no single strategy maintains competitive advantage MUST be a sequence of short-term advantages Some critics don’t agree on the cause of hyper-competition, imitation v. differentiation “Hardball” Strategies Destroy rivals’ profit sanctuaries o Flood the market with advertising or making price cuts Plagiarize “with pride” o Steal inventions that are not patent protected Mislead the competition Unleash enormous and overwhelming force o Focused, direct, and swift force
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'