BU467 Lecture Notes - Lecture 1: Product Differentiation, Cost Leadership, Strategy Map
Document Summary
Chapter 13 strategy, and balanced scorecard, and profitability analysis. Strategy specifies how an organization can create value for its customers while differentiating itself from its competitors. Value leadership strategies succeed when the custo(cid:373)e(cid:396) pe(cid:396)ceives the co(cid:396)po(cid:396)atio(cid:374)"s output as havi(cid:374)g either superior or uniquely desirable attributes for which they will pay a higher price. Cost leadership strategies succeed when a corporation can produce products that are at least equal to others in the market at the lowest cost. Economies of scope cost of producing two or more goods is cheaper than produces each separately, e. g. using the same equipment and plant. Five forces analysis to define strategic alternatives: competitors, potential entrants into the market, equivalent products, price setting power of customers, price setting power of suppliers. Identify the problem: 2. ) gather and analyze relevant information, 3. ) make predictions about the future, 4. ) make the decision between the two strategies, 5. ) implement the decision, evaluate performance, and learn.
