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1、,Chapter 3,Internal,Environment,Chapter 2,External,Environment,The Strategic Management Process,Strategic Intent,Strategic Mission,Strategic,Competitiveness,Above Average,Returns,Feedback,Strategy Formulation,Chapter 4,Business-Level,Strategy,Chapter 5,Competitive,Dynamics,Chapter 6,Corporate-Level,
2、Strategy,Chapter 8,International,Strategy,Chapter 9,Cooperative,Strategies,Chapter 7,Acquisitions &,Restructuring,Strategy Implementation,Chapter 10,Corporate,Governance,Chapter 11,Structure,& Control,Chapter 12,Strategic,Leadership,Chapter 13,Entrepreneurship & Innovation,Strategic,Actions,Business
3、 Level Strategy,Actions taken to provide value to customers and gain a competitive advantage by exploiting core competencies in specific, individual product markets.,Basis for Customer Segmentation,Consumer Markets 1. Demographic factors (age, income, sex, etc.) 2. Socioeconomic factors (social clas
4、s, stage in the family life cycle) 3.Geographic factors (culture, region or country differences) 4.Psychological factors (lifestyle, personality traits) 5.Consumption patterns (heavy, moderate, and light users) 6.Perceptual factors (benefit segmentation, perceptual mapping) 7.Brand loyalty patterns,
5、Basis for Customer Segmentation,Industrial Markets 1. End use segments (identified by SIC code) 2. Product segments (based on technological differences or production economics) 3.Geographic segments (defined by boundaries between countries or by regional differences within them) 4. Common buying fac
6、tor segments (cut across product/market and geographic segments) 5. Customer size segments,Generic Business Level Strategies,Key Criteria:,Cost Leadership Business Level Strategy,Requirements:,Constant effort to reduce costs through:,Cost Leadership Business Level Strategy,Primary Activities,Support
7、 Activities,Technological Development,Human Resource Management,Firm Infrastructure,Procurement,Inbound Logistics,Operations,Outbound Logistics,Marketing & Sales,Service,MARGIN,MARGIN,Value Creating Activities Common to a Cost Leadership Business Level Strategy,Primary Activities,Support Activities,
8、Value Creating Activities Common to a Cost Leadership Business Level Strategy,How to Obtain a Cost Advantage,1. Determine and Control Cost Drivers,2. Reconfigure the Value Chain as needed,Reconfiguring the Value Chain of Iowa Beef Packers (IBP),Save on shipping and cattle weight loss,Utilize cheaper
9、 non-union rural labor,Choices That Drive Costs,Three Key Questions,2.,How can a group of linked value activities be regrouped or reordered?,3.,How might coalitions with other firms lower or eliminate costs?,Gallo sold wine through grocery stores rather than liquor stores because they were more effi
10、cient distributors,1.,How can an activity be performed differently or even eliminated?,Effective Cost Leaders can remain profitable even when the Five Forces appear unattractive,Effective Cost Leaders can remain profitable even when the Five Forces appear unattractive,Bargaining Power of Buyers,Thre
11、at of New Entrants,Effective Cost Leaders can remain profitable even when the Five Forces appear unattractive,Can mitigate Buyer Power by:,Threat of New Entrants,Bargaining Power of Buyers,Driving prices far below competitors which may cause exit and shift power back to firm,Effective Cost Leaders c
12、an remain profitable even when the Five Forces appear unattractive,Bargaining Power of Suppliers,Threat of New Entrants,Threat of Substitute Products,Can mitigate Buyer Power by:,Bargaining Power of Buyers,Driving prices far below competitors which may cause exit and shift power back to firm,Can mit
13、igate Supplier Power by:,Low cost position makes them better able to absorb cost increases,*,More likely to make very large purchases which reduces chance of supplier power,*,Effective Cost Leaders can remain profitable even when the Five Forces appear unattractive,Effective Cost Leaders can remain
14、profitable even when the Five Forces appear unattractive,Threat of New Entrants,Bargaining Power of Suppliers,Threat of Substitute Products,Rivalry Among Competing Firms in Industry,Can mitigate Buyer Power by:,Bargaining Power of Buyers,Driving prices far below competitors which may cause exit and
15、shift power back to firm,Major Risks of Cost Leadership Business Level Strategy,Breadth of Competitive Scope,Source of Competitive Advantage,Broad Target Market,Narrow Target Market,Cost,Cost Leadership,Uniqueness,Generic Business Level Strategies,Breadth of Competitive Scope,Source of Competitive A
16、dvantage,Broad Target Market,Narrow Target Market,Cost,Cost Leadership,Differen- tiation,Generic Business Level Strategies,Uniqueness,Key Criteria:,Differentiation Business Level Strategy,Differentiation Business Level Strategy,Requirements:,Primary Activities,Support Activities,Technological Development,Human Resource Management,Firm Infrastructure,Procurement,Inbound Logistics,Operati
