MGCR 331 Lecture Notes - Lecture 4: Ing Group, Walmart, Value Chain

• School: McGill University
• Department: Management Core
• Course: MGCR 331
• Professor: Imad Mansour

Document Summary

Objectives: start developing skills for strategic thinking about it by providing frameworks to guide the strategic analysis, apply concepts from rbv, value chain, and five forces, study zara"s strategy. Main focus of today"s class: frameworks for strategy: The counterintuitive and successful strategy of zara. The technology, which has made all of this possible. Threat of new entrants: the threat of entry lowers the prices firms can charge, some factors that lower the threat of new entrants: Economies of scale, high fixed costs, access to capital. Limited access to distribution channels: examples of how it affects the threat of entry: Atm networks increase costs of setting up retail banking. Internet-based channels permit direct customer access (e. g. , ing direct) Bargaining power of suppliers: when your suppliers have power, your costs are higher, some factors that increase suppliers" bargaining power: If your industry is a small part of these suppliers" demand.