strategic management

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strategic management
2013-08-26 20:51:38
strategic formulation

for midterm exam
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  1. industry structure
    Fragmented Industry- Focus

    • Consolidated Industry -Cost/Differentiation
    • through service -Move toward commoditization
  2. Strategic Rollup (industry consolidation)
    –Involve larger numbers of firms

    • –Acquired firms are typically
    • owner operated

    • –Objective is not to gain
    • incremental advantage but to reinvent an entire industry
  3. A specific operating plan that details how a
    strategy is to be implemented in terms of when and where it is to be put into
    action. (Narrower in scope and shorter time horizons than strategies)
  4. timing tactics
    • first movers
    • late movers
  5. first mover advantages
    • –Reputation
    • for industry leadership

    • –Cost
    • leadership as product matures

    • –Temporary
    • high profits

    –10 years for CPG

    –12 years for Industrial
  6. late mover advantages
    • –Imitate
    • technology advances

    • –Lower
    • R&D costs

    • –Lower
    • risk

    • –Market
    • segmentation opportunities
  7. Market Location Tactics -- Offensive
    • frontal assault
    • flanking maneuver
    • by pass attack
    • encirclement
    • guerrilla warfare
  8. match the competition
    frontal assault
  9. segmentation
    flanking maneuver
  10. change the rules
    bypass attack
  11. variety
  12. many small initiatives on small market segments
    guerrilla warfare
  13. market location tactics - defensive
    • –Raise
    • structural barriers

    • –Increase
    • expected retaliation

    • –Lower
    • the inducement for attack
  14. active cooperation of firms within an
    industry to reduce output and raise prices to get around the economic laws of
    supply and demand
  15. Strategic Alliances (Why?)
    • –To obtain technology and/or manufacturing
    • capability

    –To obtain access to specific markets

    –To reduce financial risks

    –To reduce political risk

    –To learn new capabilities
  16. Pooled services within an industry
    mutual consortia
  17. –Creates an independent entity, allocates ownership, financial
    risk and reward (temporary with high failure rates)
    joint ventures
  18. Rights are granted to a firm in another country to produce or sell products
    licensing arrangements
  19. Alliances among companies and their suppliers and/or distributors
    value-chain partnerships