MGST 391 Chapter Notes - Chapter 2: Organic Growth, Competitive Advantage, Horizontal Integration
28 Apr 2013
School
Department
Course
Professor
Document Summary
Strategy formulation/choice: how to gain competitive advantage? (question of survival, porter"s generic strategies (5 forces, which direction to go, growth direction, organic growth. Joint development: defensive/non growth strategies, capital restructure scheme, downsizing, divestment. Porter"s generic competitive strategies (to achieve competitive advantage): Competitive position is the market share, costs, prices, quality and accumulated experiences of an organization/product relative to competition. Competitive strategy is taking offensive or defensive action to create a defendable position in an industry, and to cope with competitive forces yielding superior roi. Competitive advantage is anything which gives one organization an edge over competitors. There are following competitive strategies for companies to achieve competitive advantage. It could be at following levels of product i. e. 1. actual product a). Augmented product: delivery and credit, warranty, after sale service. Cost leadership is having lowest cost of producing . Constantly improving efficiency and economy e. g. through value chain analysis.
