Business Level Strategy

In: Business and Management

Submitted By otcaykhong
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Lecture Week 7!
Business Level Strategy!

2 !

1 !

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 !
3 !

Strategic Choices !

Exhibit III.1!
4 !

2 !

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!
5 !

Business Level Strategies!

Exhibit 5.1!
6 !

3 !

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!

7 !

Criteria for Identifying SBUs!
External! Same customer types! Same channels! Similar competitors! Internal! Similar products/ services! Similar technologies! Similar resources and competences!

8 !

4 !

Bases of Competitive Advantage!
• Competitive strategy!
– The bases for achieving competitive advantage ! – The bases for providing best value!

• Porterʼs generic strategies!
– Cost leadership! – Differentiation ! – Focus!

• Bowman and DʼAveniʼs market facing strategies!
– Provide customer needs better or more effectively than competitors! – The strategy clock!
9 !

The Strategy Clock!

Note: The strategy clock is adapted from the work of Cliff Bowman (see D. Faulkner and C. Bowman, The Essence of…...

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