This assignment covers chapter five,?Building Competitive Advantage through Business-Level Strategy,?and chapter six,?Busine
Assignment 3
This assignment covers chapter five, Building Competitive Advantage through Business-Level Strategy, and chapter six, Business-Level Strategy and the Industry Environment.
Chapter 5 Questions:
- Describe low-cost strategy. How does this strategy is different from differentiation and how it can relate to differentiation?
- describe what differentiation strategy is and how products and services are offered under this strategy? What is branding and how that concept relates to differentiation.
- Describe how businesses approach segmentation in market. Why market segmentation could help businesses to achieve the goals of their strategies? What approaches can be used to segment the market? How can this lead to competitive advantage?
Chapter 6 Questions:
- Define fragmented and consolidated industries. What are the differences between these two types of industries? How an industry can be consolidated?
- What opportunities and advantages do consolidated industries offer that fragmented industries do not?
- Describe horizontal and vertical integration. How do businesses leverage these strategies for growth, and how can they aid them in gaining competitive advantage? How developing competitive advantage could fail by horizontal and vertical integration.
Michael Porter Competitive Strategy
Techniques for analyzing industries and competitors
The Porter Model
The Model
Potential Entrants
Industry Competitor
Bargaining Power of Suppliers
Threat of Substitute
Bargaining Power of Buyers
Industry Competitor
Competition Drives Down the Rate of Return
Consolidated Industries, Little Room for Mistake Among Rivals
Lack of Differentiation or Less Switching Cost
Merger and Acquisition Increases Competition
High Strategic Stake in Achieving Success for Each Company
Economies of Scale is Crucial
Strategic Alliances and More
Threat of Entry
Economies of Scale by Businesses
Product Proliferation
High Capital Requirement for Investment
High Switching Cost for Customers
Cost Advantage by the Established Businesses/ Price as a Barrier
Access to Viable Distribution Channels
Government Regulations
Threat of Substitute
Lack of Differentiation Among Various Existing Products
Low Switching Cost for Customers
Innovation in the Industry and less Innovated Products
Brand Names and Quality of Products
Weak Distribution and Customer Service
Fragmented Industries More Prone to Differentiated Products
Bargaining Power of Buyers
Price a Fraction of Buyers Cost, Buyers less Price Sensitive
The Switching Cost is Low. Availability of Similar Products in the Market
Forward and Backward Integration Lessens the Bargaining Power of Buyer. Self Manufacturing and Self Distribution by Car Industry
The Information of Buyer on the Market, Demand, Competition and Market
Wholesalers as Buyers can Impose Bargaining Power Over Suppliers
When Customers decision on Buying can be influenced by Retailers
Bargaining Power of Suppliers
When the Industry is Dominated by a Few Suppliers
When the Supplier Competes with Alternative Supply and Suppliers
When the Supplier Sells not to one Industry but More
The Supplier's Product is Crucial to Producer's Product
The Suppliers Product is Well Differentiated
The Supplier Threat of Forward Integration Exists
Government Influence in the Industry for Substitute Product
Strategic Group Within an Industry
Strategic Groups are Leading Companies in an Industry. They Have Reached Economies of Scale and Occasionally Scope
Entry Barriers are Imposed mostly by Strategic Group in an Industry
Mobility Barriers Are determined by Skills, Resources, Strategies and Cost
Strategic Groups Have Different Amount of Power vis-à-vis Buyers and Suppliers
Strategic Groups are Exposed to Substitute Products for Product Line, Differentiation, Demographic Change, Customers……
Consolidating a Fragmented Industry
Creation of Economies of Scale
Standardization by Innovation
Rectify the Problem of a Fragmented Industry by Looking at the Causes. For Example Diseconomies of Scale
Initiate Acquisition and Merger
Explore and Investigate the Industry Trends in terms of Customer Needs and Innovation
Firms that Cannot help Consolidating an Industry are the Ones with Lack of Skills, Myopic, not Aware of the External Environment, and Organizationally not Ready
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
