COMM 4351 Chapter Notes - Chapter 9: Vertical Integration, Competitive Advantage, Semiconductor Device Fabrication
11 Dec 2014
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Opening case: apple inc. has factories in china. Hired thousands of engineers and thousands of workers in very short periods of time something that could never be done in america. Corporate level strategy: which businesses and industries company should compete in, which value creation activities it should perform in those businesses, how it should enter, consolidate, exit businesses/industries to maximize long term profitability, drive the business model. Lower cost structure increases economies of scale lower manufacturing costs (run a factory at full capacity), or reduce duplication of resources no need for two corporate head office. Increased product differentiation flow of innovation: product bundling offering customers to buy many products at a single combined price. Broader competitive advantage walmart"s range of products increased e. g. groceries in super centres: reduced industry rivalry merging/acquiring eliminates excess capacity (avoids price wars), Tacit price coordination coordination reached without communication.
