RSM392H1 Lecture Notes - Lecture 2: Perfect Competition, Customer Switching, Switching Barriers
Document Summary
To do the last you will play with the margins: cost, willingness to pay, or quantity. When you up the wtp (smaller quantity), it is differentiated product to have a premium/luxury strategy. High wtp, low cost: this is the home-run examples: apple, dell (customized offering, no distribution, quantity went up and that made a win) Responding to change in biz environment: go for market share or go for margin in the case that you have extra decrease in cost suddenly. 4 squares: change in biz environment, potential impact on biz, our response, what is success. Step 1: strategy triage: medical triage a(irway) b(reathing) c(irculation). For strategy this is the issue seems to have popped up, find potential issue and then dive down deeper. Strategy is more than oe, means making tough trade-offs, requires investments in a coherent and sustainable set of activities.
