GMS 724 Lecture Notes - Lecture 6: Perfect Competition, Cost Leadership, Learning Curve
6 Nov 2016
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Document Summary
Management vision -> strategy -> value creation -> firm performance. Firms in other industries offering substitute products. Competitive pressures stemming from the attempts of companies outside the industry to win buyers over to their products. Competitive pressures stemming from buyer bargaining power and seller-buyer collaboration. Suppliers of raw materials, components, or other resource inputs. Competitive pressures stemming from buyer-supplier bargaining and supplier-seller collaboration. Competitive pressures created by jockeying for better market position, increased sales and market share, and competitive advantage. Competitive pressures stemming from the threat of entry of new rivals. Strategy helps assess the company"s present situation, identify the direction the company should go, and determine how the company will get there. Views the world as a single market. Tightly controls operations from headquarters to preserve focus on standardization. Prefers a flexible value chain to facilitate local responsiveness. Adopts complex coordination mechanism to facilitate global integration. Uses existing core competence to exploit opportunities in foreign markets.
