Wheelen/Hunger

1
Situational Analysis

• Situational Analysis
• Process of finding a strategic fit between
  external opportunities and internal strengths
  while working around external threats and
  internal weaknesses.

2
TOWS Matrix
3
Resource-Based Approach

• Resource
• An asset, competency, process, skill, or
  knowledge controlled by the corporation.

4
Competitive Strategy

• Industry Structure
• Fragmented Industry
• Many small and medium-sized local companies
  compete for small shares of total market
• Focus strategies predominate

5
Competitive Strategy

• Industry Structure
• Consolidated industry
• Mature industry dominated by a few large
  companies
• Cost Leadership or Differentiation predominate

6
Dimensions of Quality

• Performance
• Features
• Reliability
• Conformance
• Durability
• Serviceability
• Aesthetics
• Perceived Quality

Dimensions
Quality
7
Competitive Strategy

• Strategic rollup
• Quickly consolidate fragmented industry
• Money from venture capital
• Entrepreneur acquires hundreds of owner-operated
  firms
• Creates large firm with economies of scale

8
Competitive Strategy

• Strategic rollup
• Differ from Conventional MAs
• Large number of firms
• Owner-operated firms
• Goal to reinvent entire industry

9
Competitive Tactics

• Tactic
• Specific operating plan detailing how a strategy
  is to be implemented in terms of when and where
  it is to be put into action.
• Timing tactics
• Market location tactics

10
Competitive Tactics

• Timing Tactics
• First mover (pioneer)
• Reputation as industry leader
• High profits
• Sets standards for subsequent products in the
  industry
• Late mover
• Able to imitate technological advances of others
• Keeps RD costs down
• Keeps risks down

11
Competitive Tactics

• Market Location Tactics
• Offensive Tactics
• Frontal assault
• Flanking maneuver
• Bypass attack
• Encirclement
• Guerrilla warfare

12
Competitive Tactics

• Market Location Tactics
• Defensive Tactics
• Raise structural barriers
• Increase expected retaliation
• Lower the inducement for attack

13
Cooperative Strategies

• Cooperative Strategies
• Collusion
• Active cooperation of firms to reduce output and
  raise prices
• Explicit
• Tacit

14
Cooperative Strategies

• Cooperative Strategies
• Strategic Alliance
• Partnership of two or more corporations or
  business units to achieve strategically
  significant objectives that are mutually
  beneficial.

15
Cooperative Strategies
Obtain technology
Access to markets
Strategic Alliance
Reduce financial risk
Reduce political risk
Achieve competitive advantage