戰(zhàn)略管理英文課件chBusinessLevelStrategy

1StrategicManagement:

ConceptsandCases

PartII:StrategicActions:StrategyFormulationChapter4:Business-LevelStrategy2TheStrategicManagementProcess3Chapter4:Business-LevelStrategyOverview:FivecontentareasDefiningbusiness-levelstrategyRelationshipbetweencustomersandstrategyDifferencesinbusiness-levelstrategies5-ForcesRisksofbusiness-levelstrategies4IntroductionStrategy:Increasinglyimportanttoafirm’ssuccessandconcernedwithmakingchoicesamongtwoormorealternatives.ChoicesdictatedbyExternalenvironmentInternalresources,capabilitiesandcorecompetenciesBusinesslevel-strategy:Integratedandcoordinatedsetofcommitmentsandactionsthefirmusestogainacompetitiveadvantagebyexploitingcorecompetenciesinspecificproductmarkets5Introduction(Cont’d)CustomersarethefoundationofsuccessfulbusinessstrategiesWho

willbeservedbythefirmWhatneedsthosetargetcustomershavethatfirmwillsatisfyHowthoseneedswillbesatisfiedbythefirmFive(5)genericbusinesslevelstrategiesGeneric

=canbeusedinanyorganizationcompetinginanyindustryFollowsthediscussionofcustomers6Customers:TheirRelationshipwithBusiness-LevelStrategiesStrategiccompetitivenessresultswhenfirmcansatisfycustomersbyusingitscompetitiveadvantagesReturnsearnedarethelifebloodoffirmMostsuccessfulcompaniessatisfycurrentcustomersand/ormeetneedsofnewcustomers7Customers:TheirRelationshipwithBusiness-LevelStrategies(Cont’d)…Fivecomponentsincustomerrelationships1.Effectivelymanagingrelationshipsw/customersDeliversuperiorvalueStronginteractiverelationshipsisfoundation2.Reach,richnessandaffiliationAccessandconnectiontocustomersDepthanddetailoftwo-wayflowofinformationbetweenfirmandcustomerFacilitatingusefulinteractionswithcustomers8Customers:TheirRelationshipwithBusiness-LevelStrategies(Cont’d)…Fivecomponentsincustomerrelationships3.Who:DeterminingthecustomerstoserveMarketsegmentationDividingcustomersintogroupsbasedondifferencesinneedsProcessusedtoclusterpeoplewithsimilarneedsintoindividualandidentifiablegroupsForexample,consumerandindustrialmarkets9Customers:TheirRelationshipwithBusiness-LevelStrategies(Cont’d)…Fivecomponentsofcustomerrelationships4.What:DeterminingwhichcustomerneedstosatisfyWhat=NeedsRelatedtoaproduct’sbenefitsandfeaturesMustanticipateandbeprepared:(I.e.,High-quality?Lowprice?)Translateintofeaturesandperformancecapabilitiesofproducts5.How:DeterminingcorecompetenciesnecessarytosatisfycustomerneedsCorecompetencies:resourcesandcapabilitiesthatserveassourceofcompetitiveadvantageforfirmoveritsrivalsHow=corecompetencies10PurposeofBusiness-Level(BL)StrategiesPurpose:TocreatedifferencesbetweenpositionofafirmanditscompetitorsFirmmustmakeadeliberatechoicetoPerformactivitiesdifferentlyPerformdifferentactivitiesActivitymapexemplifiesafirm’sActivitiesHowtheyareintegratedSouthwestAirline’sactivitymap:Notetheprimary(N=6)andsecondarynodes/activitiesandthe‘connectedness’orfitFitiskeytothesustainabilityofcompetitiveadvantage11PurposeofBusiness-Level(BL)Strategies(con’t)TwotypesofcompetitiveadvantagefirmsmustchoosebetweenCost(AreweLOWERthanothers?)Uniqueness(AreweDIFFERENT?How?)Twotypesof‘competitivescope’firmsmustchoosebetweenBroadtargetNarrowtargetThesecombinetoyield5differentBLstrategies12FiveBusiness-LevelStrategies13TypesofBusiness-LevelStrategies(N=5)1.CostLeadership(CL)Competitiveadvantage:THElow-costleaderandoperateswithmarginsgreaterthancompetitorsCompetitivescope:BroadIntegratedsetofactionsdesignedtoproduceordelivergoodsorserviceswithfeaturesthatareacceptabletocustomersatthelowestcost,relativetocompetitorsNo-frill,standardizedgoodsContinuouslyreducecostsofvaluechainactivitiesInbound/outboundlogisticsaccountforsignificantcostLow-costpositionisavaluabledefenseagainstrivalsPowerfulcustomerscandemandreducedprices14TypesofBusiness-LevelStrategies(N=5)(Cont’d)1.CostLeadership(CL)(Cont’d)CostleadersareinapositiontoAbsorbsupplierpriceincreasesandrelationshipdemandsForcesupplierstoholddowntheirpricesContinuouslyimprovinglevelsofefficiencyandcostreductionCanbedifficulttoreplicateandserveassignificantentrybarrierstopotentialcompetitorsCostleadersholdanattractivepositionintermsofproductsubstitutes,withtheflexibilitytolowerpricestoretaincustomersExamples:GreyhoundBus,BigLotsInc.,Wal-Mart15ExamplesofValue-CreatingActivitiesAssociatedwiththeCostLeadershipStrategy

16TypesofBusiness-LevelStrategies(N=5)(Cont’d)1.CostLeadership(CL)(Cont’d)Inrelationshiptothe5Forces:Rivalryagainstexistingcompetitors:RivalshesitatetocompeteonthebasisofpriceBargainingPowerofBuyers(Customers)BargainingPowerofSuppliers

PotentialEntrants

ProductSubstitutes17TypesofBusiness-LevelStrategies(N=5)(Cont’d)2.DifferentiationCompetitiveadvantage:DifferentiationCompetitivescope:BroadIntegratedsetofactionsdesignedbyafirmtoproduceordelivergoodsorservicesatanacceptablecostthatcustomersperceiveasbeingdifferentinwaysthatareimportanttothemTargetcustomersperceiveproductvalueCustomizedproducts–differentiatingonasmanyfeaturesaspossibleExamples:Apple’siPod18ExamplesofValue-CreatingActivitiesAssociatedwiththeDifferentiationStrategy

19TypesofBusiness-LevelStrategies(N=5)(Cont’d)2.Differentiation(Cont’d)Inrelationshiptothe5Forces:RivalryagainstexistingcompetitorsCustomersareloyalpurchasersofdifferentiatedproductsI.e.,BoseBargainingPowerofBuyers(Customers)Inverserelationshipbetweenloyalty/product:Asloyaltyincreases,pricesensitivitydecreasesI.e.,CallawaygolfclubsBargainingPowerofSuppliers

Providehighqualitycomponents,drivingupfirm’scostsCostmaybepassedontocustomer

PotentialEntrants

Substantialbarriers(seeabove)andwouldrequiresignificantresourceinvestmentProductSubstitutesCustomerloyaltyeffectivelypositionsfirmagainstproductsubstitutes20TypesofBusiness-LevelStrategies(N=5)(Cont’d)Therearetwo“Focus”strategies(#3and4)Ingeneral,thefirms’corecompetenciesusedtoservetheneedofaparticularindustry

segmentornichetotheexclusionofothers.MaylackresourcestocompeteinthebroadermarketMaybeabletomoreeffectivelyserveanarrowmarketsegmentthanlargerindustry-widecompetitorsFirmsmaydirectresourcestocertainvaluechainactivitiestobuildcompetitiveadvantageLargefirmsmayoverlooksmallniches21TypesofBusiness-LevelStrategies(N=5)(Cont’d)FocusstrategyexamplesBuyergroupsYouths/seniorcitizensProductlinesegmentsProfessionalpaintergroupsGeographicmarketsWestvs.Eastcoast

22TypesofBusiness-LevelStrategies(N=5)(Cont’d)3.FocusedCostLeadershipCompetitiveadvantage:Low-costCompetitivescope:NarrowindustrysegmentI.e.,IKEA:Gooddesign(furniture)atlowpricesNOTE:Alsohassomedifferentiatedfeatures(I.e., furnituredesign)withitslow-costproducts23TypesofBusiness-LevelStrategies(N=5)(Cont’d)4.FocusedDifferentiationCompetitiveadvantage:DifferentiationCompetitivescope:NarrowindustrysegmentI.e.,IKEA:Gooddesign(furniture)atlowpricesNOTE:Alsohassomedifferentiatedfeatures(I.e., Furnituredesign)withitslow-costproductsI.e.,Casketfurniture(productsthatcanalsobeconvertedintocaskets)24TypesofBusiness-LevelStrategies(N=5)(Cont’d)Riskofusing“Focus”strategiesAcompetitormaybeabletofocusonamorenarrowlydefinedcompetitivesegmentand"outfocus”thefocuserAcompanycompetingonanindustry-widebasismaydecidethatthemarketsegmentservedbythefocusstrategyfirmisattractiveandworthyofcompetitivepursuitCustomerneedswithinanarrowcompetitivesegmentmaybecomemoresimilartothoseofindustry-widecustomersasawhole25TypesofBusiness-LevelSt