课件参考说明ch06business level strategy

1、Copyright 2001 Houghton Mifflin Company. All rights reserved.Chapter 6Business-Level StrategyStrategicCharles W. L. HillManagementGareth R. JonesFifth EditionPowerPoint Presentation by Charlie CookAn Integrated ApproachCopyright 2001 Houghton Mifflin Company. All rights reserved.6-2What Is Business-

2、Level Strategy?Business-level strategyA plan of action to use the firms resources and distinctive competencies to gain competitive advantage.Abells “Business Definition” processCustomer needs product differentiation (what)Customer groups market segmentation (who)Distinctive competencies competitive

3、actions (how)Copyright 2001 Houghton Mifflin Company. All rights reserved.6-3Choosing a Generic Business-Level Strategy petency Choices and Generic Competitive StrategiesCost LeadershipDifferentiationFocusProductDifferentiationLow(principallyby price)High(principally by uniqueness)Low to high(price

4、or uniqueness)MarketSegmentationLow(mass market)High(many market segments)Low(one or a few segments)DistinctiveCompetencyManufacturingand materials managementResearch and development, sales and marketingAny kind of distinctive competencyTABLE 6.1Copyright 2001 Houghton Mifflin Company. All rights re

5、served.6-4FIGURE 6.1Types of Business-Level StrategiesCopyright 2001 Houghton Mifflin Company. All rights reserved.6-5Choosing a Business-Level StrategyCost-leadership strategy success is affected by:Competitors producing at equal or lower costs.The bargaining strength of suppliers.Powerful buyers d

6、emanding lower prices.Substitute products moving into the market.New entrants ing entry barriers.Copyright 2001 Houghton Mifflin Company. All rights reserved.6-6Choosing a Business-Level StrategyDifferentiation strategy success is achieved through:An emphasis on product or service quality.Innovation

7、 in providing new features for which customers will pay a premium price. Responsiveness to customers after the sale.Appealing to the psychological desires of customers.Copyright 2001 Houghton Mifflin Company. All rights reserved.6-7Choosing a Business-Level StrategyDifferentiation strategy success i

8、s affected by:Competitors imitating features and services.Increases in supplier costs exceeding differentiators price premium. Buyers ing less brand loyal.Substitute products adding similar features.New entrants ing entry barriers related to differentiators competitive advantage.Copyright 2001 Hough

9、ton Mifflin Company. All rights reserved.6-8Choosing a Business-Level StrategyFocus strategy success is affected by:Competitor entry into focusers market segment.Suppliers capable of increasing costs affecting only the focuser.Buyers defecting from market segment. Substitute products attracting cust

10、omers away from focusers segment.New entrants ing entry barriers that are the source of the focusers competitive advantage.Copyright 2001 Houghton Mifflin Company. All rights reserved.6-9Strategic Groups and Business-Level StrategyImplications for business-level strategyImmediate competitors are com

11、panies pursuing same strategy within the same strategic group.Different strategic groups can have a different standing with respect to the effects of the five competitive forces.First mover advantageBenefits are first choice of customers and suppliers, setting standards, building entry barriers.Copy

12、right 2001 Houghton Mifflin Company. All rights reserved.6-10Choosing an Investment Strategy at the Business LevelInvestment strategyThe resources (human, functional, and financial) required to gain sustainable competitive advantage.Competitive positionMarket share is an indicator of competitive str

13、ength.Distinctive competencies are competitive tools. Life Cycle EffectsAn industrys life cycle stage affects its attractiveness to investment prospects.Copyright 2001 Houghton Mifflin Company. All rights reserved.6-11Choosing an Investment Strategy at the Business LevelStage of the Industry Life CycleStrong CompetitivePositionWeak CompetitivePositionEmbryonicShare buildingShare buildingGrowthGrowthMarket concentrationShakeoutShare increasingMa