final Flashcards
(142 cards)
Strategy
“an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a comp advantage”
“An integrated set of actions designed to create a sustainable adv over competitors “
- strategy is the path needed in order to get from point a (where we are today) to point b (where we want to be)
- Strategy is the position you seek to occupy in the marketplace and the advantage you compete
- Not about being the best but being unique!!!! simple but powerful statement
Vision
An enduring word picture of what the org aspires to become and achieve in the future, anchored in the org’s core values
LT vision of what org wants to become, vision engages internal and external stakeholders
Vision statement provides sense of purpose that inspires
What makes a vision successful?
- Inspires and challenges the org and its people
- reflects the company’s values and aspirations, ensuring alignment across the firm
- engages all stakeholders in its development for inclusivity and effectiveness
Mission
a concrete, near-term focus on current product markets and customers
Defines what you must do to achieve your vision
A day to day guide
What makes an effective mission?
1.Specifies the present business or businesses where the firm competes and the
2. customers it services
Should be inspiring and relevant to all stakeholders
Why is strategy important?
4
- To define the org, to give meaning to the orgs activities
- to focus effort within the org
- to provide consistency (for efficiency and focus BUT theres the risk of too much consistency)
- to position or set direction within env
Strategy trends
- Ai driven strat
use ai to enhance decision making, streamlines ops, improve cust experiences - data driven decision making
ex. Netflix leveraging data to predict viewer preferences
challenge: companies without strong data governance or analytical capabilities often struggle to keep up in the market - Sustainability as a strategic priority
consumers demand environmentally friendly business practices
can have a comp adv through sustainability - digital transformation
- platform & ecosystem strategies
industry vs market
Industry: a group of firms producing products that are close substitutes for one another
Market: a collection of buyers and sellers interacting to exchange goods and services within a specific geographic or demographic area
industry vs market: industry focusses on supply (producers and competitors) while the market focuses on demand (buyers and customers)
Strategic analysis objectives
- Use data driven insights to eval the competitive forces shaping the market and industry
- Identify key success factors that give firms a comp advantage
- Examine industry trends, benchmarks, and compeittor strats to assess profitability and market dynamics
- Develop actionable strats based on empirical data and competitive intelligence
Key areas of focus for strategic analysis
- Competitor analysis: assess strengths, weaknesses and market positioning of direct and indirect competitors
- Market dynamics: analyze changes in customer preferences, tech advancements, and regulatory factors impacting competition
- Strategic ops: identify potential gaps in the market and ops for differentiation or cost leader
Analyzing competitive pressures
strat analysis begins with understanding the external forces shaping competition, these forces directly impact how firms strategize to gain a competitive edge
Key competitive dynamics
- New players entering the game: what barriers protect existing firms and how do u entrants disrupt industries?
- power plays by suppliers: how much influence do suppliers have on pricing and availability?
- The voice of customers: how much bargaining power do buyers have in shaping pricing and features?
- the substitution dilemma: how easily can customers switch to alternatives?
- the rivalry battle ground: how fierce is the competition between existing players?
Caveats of the five forces framework (3 key criticism)
context matters: the implication of the five forces can vary depending on market positions, such as established incumbents vs new ventures
- Defining an “Industry” is Challenging: The framework assumes industries are clearly defined, but markets are often blurred or overlap. For instance, is Amazon part of the retail industry, the tech industry, or both? A broader focus on markets may be more relevant in modern business.
- Oversimplification and Force Fitting: Real-world complexities are often reduced to fit the Five Forces model, which may lead to forced conclusions that oversimplify business realities. For example, disruptive innovations like AI don’t always fit neatly into these categories but can reshape entire industries.
- Internal Capabilities Overlooked: Critics argue that the Five Forces emphasize external factors but often ignore a firm’s internal strengths, such as unique resources or core competencies (resource-based view).
+3 more competitive forces
- Social forces: recognize key societal trends, regulatory shifts, or cultural values impacting your business
- Complementary organizations: identify businesses and organizations that enhance you value by providing complementary goods or services
- New strategies : explore disruptive approaches to creating and selling goods
capabilities analysis
capabilities analysis
(key antecedents and definitions)
it is not possible to eval the attractiveness of an industry indépendant of the resources a firm brings to that industry
Key antecedents:
- resources and capabilities: firms are bundles of physical and HR which managers organize into productive services to explor external ops
- value chain framework: explains that size and scope of the firm, focusing on how internationalization and key coordination of resources drive success
key definitions;
- resources: tangible and intangible assets used to craft and implement strats
- capabilities: the firms ability to coordinate and leverage resources to achieve a competitive edge
Marvel
strategic use of resources and turnaround
from bankruptcy in 1966 to being sold for 4.24 B to Disney in 2009
challenges facing marvel: too dependant on a limited set of characters, too dependant on consumer interest for the superhero genre, does not capture enough of the value created with its key characters
what makes marvel special?
Marvel monetized content library via licensing characters for use with media products and other consumer products, marvel managed the library of characters to foster LT value, marvel retained some form of control over the creative process to ensure the quality of the content that featured marvel characters
value chain analysis
What: a framework firms use to analyze their strengths and weaknesses by evaluating their activities and support functions
helps identify how a company creates value for customers and supports the implementation of it strategy
VC key components
Value chain activities: tasks the firm performs to produce, sell, distribute and service products in ways that create value for customers (ex. Production, marketing, distribution)
support functions: activities that enable value chain activities (ex. HR, tech, procurement)
Why is VC important for capabilities analysis
the value chain provides a structured approach to uncover where a firms capabilities and gaps lie
developing capabilities or core competencies in specific activities or support functions gives the firm a competitive edge
Ex. Amazon excels in distribution capabilities (value chain activities) and logistics tech (support fcn) creating unmatched customer value
outsourcing
when the firm cannot create value in either a value chain activity or a support function, outsourcing is considered
outsourcing is the purchase of a value creating activity or a support function activity from an external supplier
- firms engaging in effective outsourcing: increase their flexibility, mitigate risks, reduce their capital investments
- firms should use outsourcing only for activities where they: cannot create value, are at a disadv compared to comp
VC more info
Inbound logistics: activities used to receive, store, and disseminate inputs to a product
operations: activities necessary to convert the inputs provided by inbound logistics into final product form
outbound logistics: activities involved with collecting, storing, and physically distributing the product to customers
marketing and sales: activities completed to provide the means through which customers can purchase products and to induce them to do so
service: activities designed to enhance or maintain a product’s value
procurement: activities completed to purchase the inputs needed to produce a firms products
technological development: activites completed to improve a firms product and processes used to manufacture it
HRM: activities involved with recruiting, hiring, training, developing, and compensating all personnel
firm infrastructure: activites that support the work of the entire value chain (general mgmt, planning, finance, accounting, legal, etc.)
HTC’s Challenges and Competitive Pressures
Increased competition: Apple: Patent infringement lawsuits. Samsung: Gaining Android market share.
Shift toward a vertical business model (e.g., Apple, RIM) over HTC’s horizontal model.
Complexity in managing relationships with Google (acquisition of Motorola) and Microsoft-Nokia alliance.
HTC Industry Turmoil
Smartphone market evolving into mobile devices (e.g., Apple’s iPad in 2010).
HTC faced pressure to compete in the tablet market, where most players had struggled to match Apple’s dominance.
Earnings calls
A quarterly event where company executives discuss financial performance, strategies, and future outlook.
Typically includes: 1) Management Presentation: Overview of financial results and strategic updates. 2) Q&A Session: Analysts ask questions about challenges, opportunities, and market trends.
Provides valuable insights into company operations, leadership thinking, and industry context.