Part 1 Flashcards
(27 cards)
What are the 5 different components of strategy?
- Arenas; Where active?
- Vehicles; through which means?
- Differentiators; how beat competition?
- Staging; sequence of the company moves?
- Economic logic; how become profitable?
Maximization of the consumer surplus will lead to value creation. What are the two key strategies for value creation?
- Differentation strategies: Increase the WTP
- Cost leadership strategies: Decrease the exchange value/lower the price
The ability to capture value depends on barriers to imitation of products and services. What are the 3 ways to predict value capture?
- Causal ambiguity; no one knows your business, secret
- Time compression diseconomies; first mover, costly to catch up with big players
- Isolating mechanisms; Nda’s etc, hinder knowledge outflow to other firms
What is a business model
A description of how a firm creates, delivers, and captures values for its customers, partners and stakeholder
What is a strategy
A collection of five irrelated and mutually reinforcing choices that specify how, where, and when a firm will compete and achieve its objectivee in competitive circumstances.
What are the nine key elements of a business model? HINT: 4x C, 3x K, 1xV, 1xR
- Customer segments
- Channels
- Customer relationships
- Cost structure
- Key resources
- Key activities
- Key partnerships
- Value proposition
- Revenue streams
What is a capability
An internally ingrained, non-transferable, firm specific resource explicitly designed to enhance the productivity and performance of the firm’s other resources.
Managing strategic resources involves navigating various forms of luck. Which 4 types of luck are there?
- R&D luck; right timing, uplanned discoveries and successes
- Trading luck; purchasing/selling in your favor
- Compatibility luck; choose right platform that aligns with emerging industry trends
- Positioning luck; first mover advantage
What are the different types of dynamic capabilities?
- Reconfigure Resources
- Gain and Release Resources; alliances and acquisitions
- Integrate Resources; optimize resource utilization by combining skills and expertises
What are mobility barriers? And why is it assymetrical?
Costs associated with move to another strategic group. It is often assymetrical while for the one group it is easier to move to another strategic group than for another group
What is the difference between industry perspective and competitive dynamics?
The industry perspective is about the macro level of the industry (porters 5 forces) and the competitive dynamics is about the micro level (one vs one). Also a industry perspective is symmetrical when it comes to firm relationships, and with competitive dynamics it is asymmetrical.
What are the drivers of competitive behaviour?
AMC framework;
1. Awareness; firms awareness of competitors and environment
2. Motivation; incentives to engage in competition with rival
3. Capability; what is the firms capacity to compete? Resource deployment, decision making processes etc.
What are the two axes of the Framework of competitive analysis?
X-Resource similarity
Y- market commonality
Explain mutual forbearance
When firms do not attack competitors/rivals they meet in multiple markets. This occurs because commonality and resource similarity allow both firms to counteract each others actions; (you know what the ofher can do to you)
What do they mean with disruptive innovation, and what are the characteristics?
When a firm transforms a product that was historically very expensive to produce into a product that is relatively affordable.
Characteristics;
1. Lower gross margins
2. Smaller target markets
3. Simpler products and services
What are three main limits to strategic management?
- Bounded rationality; (limits in their thinking ability)
- Complex task-interdependence and conflict; (departments or units pursue their own strategic goals)
- Environmental uncertainty; (ever changing market dynamics)
What are the two types of knowledge creation and explain them
- Procedural knowledge; knowing how to do specific tasks
- Declarative knowledge; knowing that something is true
What are the three forms of organizational learning?
- Knowledge creation; (experience)
- Knowledge retention; (memory)
- Knowledge transfer; (across organization/units)
Knowledge creation is about…
Firms internal representation of the world
Digitalization is actively transforming production processes. What are the three major trend for changes in companies?
- Trend towards Disaggregated Supply Chains
- Trend towards Increasing firm focus
- Trend towards Modularity in Value Chains
Name the 3 types of suppliers in disaggregated supply chains
- Captive suppliers; makes non-standard products using machinery dedicated to buyers needs
- Relational suppliers; provided standard products through arm’s length market relationships
- Turn-key suppliers; produce customized goods and pool different consumer’s capacity with the usage of flexible machinery
What are the three important benefits of digital goods?
- Their marginal production cost is minimal
- They aren’t subject to value depreciation
- The delivery of quality is consistent
What is meant by the modularity of value chains?
It refers to the breaking down of a firm’s value chain into indepent, interchangable units or modules. Each module represents a seperate part of the overall production process that can be managed. !!! INDEPENT MODULES, DIFFERENT COMBINATIONS, COMBINING EXISTING RESOURCES AND OR CAPABILITIES
What are components?
The output of upstream suppliers serve as inputs to the focal firm. These are bundled by the focal firm into its final product
