SMG SI 422 Study Guide - Midterm Guide: Market Failure, Value Capture, Resource-Based View
26 Nov 2018
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Generic strategies: cost leadership, differentiation, focus. Strategic positions: variety based positioning - subset, needs based positioning - subset, access based positioning - specific. **strategy depends on doing many things well, and integrating them. If there is no fit, there"s no distinct strategy and little sustainability. Picture that identifies strategic themes and key activities of a firm (their tradeoffs and the investments that they make) and identifies the linkages between them. These can be further linked to costs and customer willingness to pay. Operational effectiveness is necessary but not sufficient for long term competitive advantage. Having a strategy that fits the environment is key. A configuration of activities, incentives and systems. That supports successful positioning and makes the right tradeoffs. Porter believes that firms can achieve competitive advantage only if they have both operational effectiveness and a superior strategy. Goal is to understand determinants of long term organizational performance. Goal is to enable organizations to achieve greatest possible performance.
