Chapter 2.docx

3 Pages
67 Views
Unlock Document

Department
Management Studies
Course
MGST 391
Professor
Ahmad Ali Sohrabi
Semester
Winter

Description
Chapter 2 Strategy formulation/choice 1. How to gain competitive advantage?(question of survival) i. Porter’s Generic Strategies (5 forces) 2. Which Direction to go i. Growth direction a. Organic growth  Ansoff’s Product-Market Matrix b. Joint development ii. Defensive/Non growth strategies a. Capital Restructure Scheme b. Downsizing c. Divestment Porter’s Generic Competitive Strategies (to achieve competitive advantage): Competitive position is the market share, costs, prices, quality and accumulated experiences of an organization/product relative to competition. Competitive strategy is taking offensive or defensive action to create a defendable position in an industry, and to cope with competitive forces yielding superior ROI. Competitive advantage is anything which gives one organization an edge over competitors. There are following Competitive Strategies for companies to achieve Competitive Advantage. Lower Cost Differentiation Broad Target Cost Leadership Differentiation Cost Focus Differentiation Focus Niche Focus (for luxury goods) Differentiation is “creating value through uniqueness”. It could be at following levels of product i.e. 1.Actual Product a). Features. b). Quality level. c). Design. d).Brand name e). Packaging. 2. Augmented Product i. Delivery and credit ii. Warranty iii. Installation iv. After sale service Cost Leadership is “having lowest cost of producing”. It could be achieved by:  Mass Production (economies of scale)  Latest Technologies  Favorable access to raw materials  Automation  Minimizing overhead by exploiting bargaining power  Constantly improving efficiency and economy e.g. through value chain analysis Focus involves a restriction of activities to only part of the market (a segment) through  Providing goods/services at lower cost (Cost focus)  Providing a differentiated product/service (Differentiation focus) Advantages/Comparison of Competitive Strategies: Competitive Force Cost Leadership strategy
More Less

Related notes for MGST 391

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit