MGMT 386 Lecture Notes - Lecture 16: Cost Leadership, Strategic Management, Market Segmentation
achieved when a firm successfully formulates and implements a value creating strategy
strategy
an integrated and coordinated set of commitments and actions designed to exploit core competencies
and gain a competitive advantage
competitive advantage
when a firm implements a strategy that creates superior value for customers, competitors are unable to
duplicate it or find too costly to imitate
globalization
emergence of a global economy
technology
rapid technological changes
industry boundaries blurring
computer networks and telecommunications have blurred the boundaries of the entertainment industry
strategic manangement proces
effective use reduces the likelihood of failure for films as they encounter the conditions of todays
completive landscape
European economy
union has become one of the world largest markets, with 700 million potential customer
China Economy
has become the second largest economy in the world surpassing Japan
India
worlds largest democracy, has an economy that now ranks as the 4th largest in the world
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five forces model
analytical tool used to help firms find the industry that is the most attractive, as measured by its
probability potential
cost leadership strategy
producing standardized goods or services at coast below those of competitors
differentiation strategy
producing differentiated goods or services for which customers are willing to pay a price premium
above average returns
earned when firms are able to effectively study the external environment as the foundation for
identifying an attractive industry and implementing the appropriate strategy
valuable
allow a firm to take advantage or opportunities or neutralize threats
rare
possessed by a few if any current and potential competitors
costly to imitate
when other firms cannot obtain them or are at a cost disadvantage
non substitutable
when they have no structural equivalents
vision
a picture of what the firm wants to be and, in broad terms what it wants to ultimately achieve
vision statement
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