BUS 331 Chapter Notes - Chapter 6: Outsourcing, Vertical Integration, Blue Ocean Strategy
3 Apr 2016
School
Department
Course
Professor
Document Summary
Strengthening a company"s competitive position: strategic moves, timing, and scope of operations. Launching strategic offensives to improve a company"s market position. Choosing which rivals to attack: vulnerable market leaders, runner-up firms with weaknesses in areas where the challenger is strong, struggling enterprises that are on the verge of going under, small local and regional firms with limited capabilities. Blue ocean strategy don"t try to out-compete in an established market segment, but rather discover or invent a new industry segment: good short-term opportunity, but don"t ensure long term success. Defensive strategies to protect market position and competitive advantage. Lower the risk of being attacked, weaken impact of attack, influence challengers. Timing a company"s offensive and defensive strategic moves. First-mover advantages: can help establish leadership, brand loyalty. Potential disadvantages to first-mover/advantages of fast follower: no learning curve benefits, products are primitive/not up to buyer standards, buyers are skeptical, rapid market evolution fast followers and skip the step of the first mover.
