Learning Outcomes – Week 7!
Be able to! • Identify Strategic Business units in Organisations! • Explain the different bases of achieving competitive advantage! • Explain the factors inﬂuencing the sustainability of competitive advantage! • Explain the relationship between competition and collaboration !
Strategic Choices !
Business Level Strategy - Outline!
• Strategic business units! • Competitive advantage (strategy clock)!
– Price-based! – Differentiation! – Hybrid and focus!
• Sustainability of competitive advantage! • Co-operation and competition! • Game theory in competitive strategy!
Business Level Strategies!
Strategic Business Units!
A strategic business unit is a part of an organisation! for which there is a distinct external market for goods or services that is different from another SBU!
• Opposing pitfalls in identifying SBUs!
– Too many different products/markets means lack of focus! – Too few means not reﬂecting diversity of products/markets!
Criteria for Identifying SBUs!
External! Same customer types! Same channels! Similar competitors! Internal! Similar products/ services! Similar technologies! Similar resources and competences!
Bases of Competitive Advantage!
• Competitive strategy!
– The bases for achieving competitive advantage ! – The bases for providing best value!