chapter5-strategy-formulation英语教学课件

Chapter5StrategyFormulation:SituationAnalysisandBusinessStrategySWOTanalysisSWOTAnalysisisastrategicplanningmethodusedtoevaluatetheStrengths,Weaknesses,Opportunities,andThreatsinvolvedinaprojectorinabusinessventure.SWOTanalysisInternalfactors–Thestrengthsandweaknessesinternaltotheorganization.-UseaPRIMO-FanalysistohelpidentifyfactorsExternalfactors–Theopportunitiesandthreatspresentedbytheexternalenvironmenttotheorganization.-UseaPESTanalysistohelpidentifyfactorsSWOTanalysisThePRIMO-FModelPeopleintermsoftheirexperience,theirleadershipandthecontrolsinplaceintheorganization.ResourcesInnovation&IdeasMarketingOperationsFinanceSWOTanalysisTOWSmatrixTOWSmatrix:howtheexternalopportunitiesandthreatsfacingaparticularcorporationcanbematchedwiththatcompany’sinternalstrengthsandweaknessestoresultinfoursetofpossiblestrategicalternatives.SOstrategies:useitsstrengthstotakeadvantageofopportunities.STstrategies:useitsstrengthstoavoidthreats.WOstrategies:useopportunitiestoovercomeweaknessesWTstrategies:defensiveandacttominimizeweaknessesandavoidthreats.BusinessstrategyBusinessstrategyCompetitivestrategyCooperativestrategyGenericcompetitivestrategyCostleadership:abilityofacompanyorabusinessunittodesign,produce,andmarketacomparableproductmoreefficientlythanitscompetitors.Differentiation:theabilitytoprovideuniqueandsuperiorvaluetobuyerintermsofproductquality,specialfeaturesorafter-saleservice.Focus:Featuresimportanttocustomers&distinctfromcompetitorsthatallowpremiumpricingCompetitivestrategyCostleadershipThecostleaderdoesnottrytobetheindustryinnovator.Theoverridinggoalofthecostleaderistoincreaseefficiencyandloweritscostsrelativetoindustryrivals.SourceofcostleadershipEfficientscalefacilitiesExperiencecurveTightcostandoverheadcontrolAvoidanceofmarginalcustomeraccountsCostminimizationofR&D,service,advertisingandsoonCostleadershipRivalryEntryBuyersSuppliersSubstitutes•increasescapital requirements forentrants•competitorsrationally avoidpricecompetition• limits attractiveness ofsubstitutes

• increases importanceofthe focalfirmtothe supplier• lowersincentives forbuyersto vertically integrateCostleadershipDisadvantagesofcostleadershipCostleadershipcanbeimitatedbycompetitor.Competitorsmaylowertheircoststructures.Costreductionsmayaffectdemand.DifferentiationDifferentiationchargeapremiumforitsproduct.SourceofdifferentiationDesignorbrandimageTechnologyFeaturesDealernetworkCustomerserviceDifferentiationAdvantagesofdifferentiationPowerfulsuppliersarenotaproblembecausethecompanyisgearedmoretowardthepriceitcanchargethanitscosts.Differentiatorscanpasspriceincreasesontocustomers.Powerfulbuyersarenotaproblembecausetheproductisdistinct.Differentiationandbrandloyaltyarebarrierstoentry.Thethreatofsubstituteproductsdependsoncompetitors’abilitytomeetcustomerneeds.DifferentiationDifficultymaintaininglong-termdistinctivenessincustomers’eyes.Agilecompetitorscanquicklyimitate.Patentsandfirst-moveradvantagearelimited.Difficultymaintainingpremiumprice.FocusstrategyThefocuserselectsaspecificmarketnichethatmaybebasedon

GeographyTypeofcustomerSegmentofproductlineFocusedcompanypositionsitselfaseitherLow-Costor–costfocusDifferentiator–differentiationfocusFocusstrategyAdvantagesoffocusstrategyThefocuserisprotectedfromrivalstotheextentitcanprovideaproductorservicetheycannot.Thefocuserhaspoweroverbuyersbecausetheycannotgetthesamethingfromanyoneelse.Thethreatofnewentrantsislimitedbycustomerloyaltytothefocuser.Customerloyaltylessensthethreatfromsubstitutes.Thefocuserstaysclosetoitscustomersandtheirchangingneeds.DisadvantagesoffocusstrategyLosebroadlytargetedcompetitorStuckintheMiddleTimingtacticsFirstmoveradvantage:thefirsttodevelopandpioneerrevolutionarynewproductsthatcanleadtoanenduringcompetitiveadvantage.Firstmoveradvantagesourcesoffirst-moveradvantagesExploitnetworkeffectsLockingcustomersintoitstechnologyEstablishsignificantbrandloyaltyExpensiveforlaterentrantstobreakdownEnableeconomiesofscaleandlearningeffectsSofirst-moverhascostadvantageandcanrespondtonewentrantsbycuttingpricetomaintainmarketshareCreateswitchingcostsforcustomersMakingitdifficultforrivalstotakecustomersawayAccumulatevaluableknowledgeRegardingcustomers,distribution,andtechnologythatlateentrantswillfinddifficultorexpensivetomatchFirstmoverdisadvantagePioneeringcostsTodeveloptechnologyanddistributionchannelsandtoeducatethecustomers.Laterentrants‘free-ride’onfirst-mover’sinvestments.MorepronetomakemistakesBecauseoftheuncertaintiesinanewmarketLaterentrantslearnfromthemistakesoffirst-movers.RiskofbuildingthewrongresourcesandcapabilitiesMass-marketmaydifferfromtheneedsofearlyadoptersMayinvestininferiororobsoletetechnologyIftheunderlyingtechnologyisadvancingrapidlyLateentrantsmaybeableto‘leapfrog’thetechnology.LatemoveradvantageBeabletoimitatefirstmover’stechnologicaladvances,thuskeepR&Dlow.MinimizeriskbywaitinguntilanewmarketisestablishedTakeadvantageofthenaturalinclinationofthefirstmovertoignoremarketsegment.CooperativestrategyCooperativestrategy:usedtogaincompetitiveadvantagewithinandindustrybyworkingwithratherthanagainstotherfirms.Strategicalliance:partnershipoftwoormorecorporationorbusinessunitformedtoachievestrategicallysignificantobjectivesthataremutuallybeneficial.CooperativestrategyMutualserviceconsortium:partnershipofsimilarcompaniesinsimilarindustrieswhopooltheirresourcetogainabenefitthatistooexpensivetodevelopalone,suchasaccesstoadvancedtechnology.Jointventure:forstrategi