ADMS 1000 Lecture Notes - Lecture 4: Vertical Integration, Switching Barriers, Strategic Management

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Eytan Lasry

Document Summary

What is strategic management: strategic management create and sustain competitive advantage. : the analyses, decisions, and implementations a firm undertakes to: analyzing the external environment, industry structure analysis. Group of firms with similar resource requirements in raw materials: ex: airline industry, beer, the five-forces model attempts to evaluate the attractiveness of an industry. 1 - threat of new entrants: incumbents must create barriers to entry. Cost advantages unrelated to scale (ex: ip; patents, etc. ) 5 rivalry among existing firms: high exit barriers increase competitive rivalry, the model is static and assumes all firms experiences forces in the same way, vrio model, asks 4 questions. Is the firm organized to exploit these valuable, rare, and difficult to imitate resources: must answer yes to all 4 questions, or no one cares. If no to one of the questions, it will only be temporary.