MGMT 4000 Lecture Notes - Lecture 6: La Croix, Lean Startup, Netflix

• School: University of Guelph
• Department: Management
• Course: MGMT 4000
• Professor: Nadege Lavallet

Document Summary

This week: moves, alternatives, decision criteria. Set of goal-oriented decisions made and actions taken by an organization to gain and sustain superior performance relative to competitors. Do something new: new markets, new differentiation, revisit business model. Build on what you do well: build on core competency/resources. Be opportunistic: simple rules, flexible-as-strategy, running as a lean start-up. First mover: first to tap into that market, often requires significant investment, advantage in terms of brand recognition, differentiation from other companies, ex. La croix; first mover in flavoured guilt free" carbonated beverages: ex. Netflix; first mover to online streaming site and show development. Innovation comes from low-end or new market foothold; lower quality or lower cost. Innovations don"t catch on with mainstream customers until quality catches up to their standards. Cable was the dominant incumbent in the industry: then streaming started; netflix was a first mover with ordering dvds, slowly quality improved, price increases, business becomes more popular.