sustainable competitive adantage

8/6/2019 Sustainable Competitive Adantage

1/12

ustainable Competitiveustainable CompetitiveAdvantagedvantage


2/12

ustainableustainableompetitive Advantageompetitive Advantage


3/12

Requirements for SustainableRequirements for Sustainable

Competitive AdvantageCompetitive Advantage


4/12

Strategy-Making Process--- Assess need for strategic change.

Conduct a Situational Analysis. Choose Strategic Alternatives.

Assess need for strategic change--- * Avoid Competitive Inertia. * Look for Strategic Dissonance.

Situational Analysis--- * SWOT Analysis. a) Internal--- Strengths & Weaknesses b) External--- Opportunities & Threats.


5/12

Strategic Groups--- *Core Firms. * Secondary Firms. * Transient Firms. * Shadow-strategy task force.

Choosing Strategic Alternatives--- * Risk-Avoiding Strategy. * Risk-Seeking Strategy.

* Strategic Reference Points.


6/12

Corporate Level Strategy:Corporate Level Strategy:The overall organizational strategy that

addresses the question What businessesare we in or should webe in?

--- Portfolio Strategy. Ex: BCG Matrix --- Grand Strategies


7/127

BCG MatrixBCG Matrix

elative M arket S h areelative M arket S h areS m a ll La rg e

Lo w

H ig h u e stio n M a rk su e stio n M a rk s S ta rsta rs

D o g so g s a sh C o w sa sh C o w s


8/128

Diversification and RiskDiversification and Risk

Lo w

H ig h

S in g leB u sin e ss R e la te dD iv e rsifica tio n U n re la te dD iv e rsifica tio n

e la tio n sh ip B e tw e e ne la tio n sh ip B e tw e e nive rsifica tio n a n d R iskiv e rsifica tio n a n d R isk


9/12

Industry-Level StrategiesIndustry-Level Strategies Five Industry Forces.

Positioning Strategies. Adaptive Strategies.

Five Industry Forces---- * Character of Rivalry, # Threats of New Entrants.

# Threat of Substitutes. # Bargaining Power of Suppliers. # Bargaining Power of Buyers


10/1210

Direct CompetitionDirect Competition

e so u rce S im ila ritye so u rce S im ila rityLo w H ig h

H ig h

Lo w

III

III IV

cDonald scDonald s

cDonald scDonald s

BurgerKingendy s

uby s Cafeteria Subway


11/12

Strategic Moves of DirectStrategic Moves of Direct

CompetitionCompetitionAttack A competitive move designed to reduce a

rivals market share or profits.

Response A competitive countermove, prompted by

a rivals attack, to defend or improve acompanys market share or profit.


12/12

Entrepreneurship andEntrepreneurship andIntrapreneurshipIntrapreneurship

EntrepreneurshipThe process of entering new or established

markets with new goods or services

Intrapreneurship Entrepreneurship within an

existing organization

Entrepreneurial orientationThe set of processes, practices, and

decision-making activities that lead to newentry

sustainable competitive adantage

Documents