COMMERCE 4PA3 Lecture Notes - Lecture 10: Maple Leaf Foods
1 Mar 2019
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Document Summary
Industries have become hypercompetitive, top firms drop fast. Competitive advantages erode quickly (5-6 years): research on piracy point out threats from illegitimate companies. Pirate organizations point the direction to where an industry is moving (i. e. lime wire): about 70% of all change efforts fail due to leadership skills. Firms who are in strategic decline have at one point used their competitive advantage but are now seeing their performance erode. Strategic decline stems from a number of external threats to your company"s competitive advantage plus internal barriers that make it challenging to respond. There are 3 types of external threats: (1) imitation threat (2) substitution threat (3) hold up. Imitation threat: when another company is offering what you provide to the same target customers. Substitution threat: when a competitor disrupts your business model with a new and possibly better way to deliver a value proposition and destroys the advantages of the entrenched market leaders.
