...harDate and time received _________________ External Assessment The electronic consumer products industry consists of companies that produce and sell electronic components as well as finished electronic products. Demand is increasing at the international level, although industry growth is slowing due to a worldwide economic recession. The industry is fragmented with many competitors. The low barriers to entry indicate potential increases in fragmentation. Though, quality and size lacks as a differentiator, especially in the television set business, it cannot be ignored. Preferable competitive advantage is defined as a low cost producer or high in innovation. As a result, profitability swings on firm’s competitive advantage and its capabilities. The industry is facing increasing demand from China entering the electronic software/hardware industry. Chinese companies are expressing their interests in adopting the next-generation LCD production. China providing an attractive business environment in low cost structure provides competitive advantage of being a low cost producer. International companies can exploit this opportunity by either a form of joint venture with Chinese companies or direct foreign investment; investing in physical plants. This successful integration will help achieve to become a low cost producer in the industry due to China’s cheap labor and infrastructure costs. Currently, the market is saturated with low ability to differentiate the end products...
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...Generic Competitive Advantage May 2, 2012 The Generic Competitive Strategies can be used as a business tool which helps strategists understand how the position of a company within its industry can be directly related to the strategy it employs. The strategy employed can then be analyzed to understand where a company's competitive advantage lies, with a view to maintaining it. Porter (1985). In the early 1980s the most widely read books on competitive analysis were written by Michael Porter. They consisted of Competitive Strategy, Competitive Advantage, and Competitive Advantage of Nations. In his various books, Porter developed three generic strategies that, he argues, can be used singly or in combination to create a defendable position and to outperform competitors, whether they are within an industry or across nations. Porter states that the strategies are generic because they are applicable to a large variety of situations and contexts. According to Porter's Generic Strategies model, there are three basic strategic options available to organizations for gaining competitive advantage. These options are: Cost Leadership, Differentiation and Focus. The Cost Leadership Strategy is a Strategy that is used by businesses to create a low cost of operation within their niche. The use of this strategy is to gain an advantage over competitors by reducing operation costs below that of others in the same industry. Inside Porter's generic strategies are ways of gaining competitive advantage...
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...Defining Strategy Submitted by- Maj Yash Vardhan Naudiyal Roll No – 35, NMP XXIII Strategy The Need for strategy “Change is the only constant” – Gautam Buddha 1. Nothing in the world is constant. Neither is the world itself constant ; its changing, and presenting itself in new forms every time we view it and try to make a sense of it. Change is a continuous processes- ‘to survive it, adapt to it’. Business is also a part of this process. The context in which the business is done keeps on changing. However constant the change, the basic assumption stands, that the needs have remained constant so far, but the means to satisfy the needs will keep on changing. 2. To survive change, businesses, individual or society needs to adapt. And to adapt, one needs as strategy. Hence, the primary function of strategy is to help us adapt to the change. Change and this adaptation to change is the surviving process. It’s a continuous function. The components of change process are interdependent. The pace of one defines the pace the other. Strategy “Strategy is choosing to perform activities differently than rivals do.” 3. Strategy Needs to be understood from two perspectives ie Internal and external. These two factors when in sync, give the premise for strategic decision making. Business is nothing but the amalgamation of certain assumptions about its environment, mission and core competencies. This amalgamation defines the “what to do of the business.” The firm...
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...Chapter 1 Intro to strategic management 1. Competitive advantage Derived from the successful formulation and execution of strategies which differ and create more value than competitor strategies Strategic management process The full set of commitments, decisions, and actions required for a firm to create value and earn returns that are higher than those of competitors 2. The Competitive Landscape, The US Airline Industry - An Illustration * De-regulation 1978 * Low-cost, limited route carriers * Terrorist attacks * Volatile economic conditions * Global alliances * High level of consolidation 3. The Competitive Landscape-Major Trends * Globalization * Economic volatility * Rapid technological change 4. Globalization of Markets and Industries * Globalization Increasing economic interdependence among countries as reflected in the flow of goods and services, financial capital, and knowledge across country borders * Hypercompetition Extremely intense rivalry among firms, characterized by escalating and aggressive competitive moves among market challengers * Artificial constraints on business transactions across national boundaries (such as tariffs) have been eliminated. * Restraints on the transfer of resources (such as equipment, capital, raw material, and even employees) across markets have decreased significantly. * The range of competitive opportunities available to firms has greatly increased. ...
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...Tesla Motors: SWOT Analysis Tesla Motors designs, develops, manufactures and sells high performance fully electric vehicles, advanced electric vehicle, powertrain components and stationary energy storage systems. Political, economic, socio-cultural and technological factors have influenced Tesla in complex ways since Tesla is a big player in the EV industry – one of the non-traditional automobile industry segments. The political factors have mostly favored Tesla since the government gives subsidies, tax rebates for EV manufacture. The general economic growth in the US economy have favored Tesla but decreasing oil prices and increasing labor prices have acted as threats to Tesla. The go green concepts have favored Tesla but unfamiliarity around the EV technology have posed threats to Tesla. However, limitations by way of battery technologies and charging of batteries have posed threats to Tesla even though technological developments are taking place in the EV industry around battery and charging technologies The overall threats of micro forces is medium based on porter’s 5 forces analysis. The threat for the substitutions is high and threat from rivals is medium due to few rivals who can match the quality of Tesla cars. There seem to be least threats from suppliers since they are not specialized in EV industry and buyers due to direct sales. More details are provided in exhibit 2 as given below The company has established a good value chain by its own network of sales...
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...Level Strategy………………………………………………..p. 9 Core Competencies …………………………………………………………….p. 9 Competitive Advantage………………………………………...………………p.12 Low Cost Business Level Strategy………………………………………...…..p. 13 Low Cost Business- Level Structure………………………………………………….p. 15 Conclusion…………………………………………………………………………….p. 17 Appendix……………………………………………………………………………...p. 18 References…………………………………………………………………………….p. 20 Executive Summary Porter asserts that their secret to success relies in combining a low-cost business-level strategy with a focus on higher yield passengers who value premium service (Preville, 2014). The company has been profitable for the last two years, and as a result has been focusing efforts on expanding their domain and customer base. After conducting an interview with an operations manager at the company, Ashley Hammill, I was able to acquire information about the company’s expansion plans, business strategy and structure (See Appendix A). I will be using the information provided by her primarily, with some secondary sources allowing me to go into further detail about the company. This paper will analyze through their expansion plan, how Porter Airlines will effectively utilize their low-cost business level strategy to increase their customer base. Furthermore I will conduct an in-depth analysis on Porters’ core competencies and coordination abilities used to establish a competitive advantage; expanding into how Porter matched its’ strategy and structure in order to...
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...more than just tactical or operational to take advantage of business opportunities. Important measures of project success such as building market share, extending product lines, increasing revenue, satisfying customers, and building for the future, to enable the projects to have an active element in the implementation of a company's strategic intent, achieve better results, and increase the company's competitive advantage or value should be included. Project success should be measured on more than the ‘triple constraint’ criteria of schedule, budget and specification. Shenhar developed four Success Dimensions that measure project success over time. These measures include "Efficiency”, which is measured immediately after project completion, it measures whether the project was completed on time and within budget. "Impact on the Customer", This is measured within a year of project completion, It measures if specifications were met and if customer satisfaction and quality was met. "Impact on the Business”, Is measured a year or two after project completion, it measures if the project efforts resulted in increasing revenue and profits, creating positive ROI and ROE. Lastly "Building for the future", which is measured in five year's time, it measures if the project created infrastructure, new core competencies, new market opportunities, or extend product lines. Project Strategy is essential to achieving better results and increasing the value obtained from a project as it focuses...
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...the organization achieve its competitive advantage. Changes in the environment such as widespread globalization, rapid technology and other such factors have led to organizations realizing the significance of controlling human resources in a firm. Since organizations have also become more dynamic and complex, the need to manage human resources has become more essential. In recent years, many individuals demanded for a more strategic approach to managing people in a firm, rather than the traditional methods, and thus the idea of strategic human resource management (SHRM) was adopted. Strategic human resource management is a branch of human resource management, and it can be defined as ‘ the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage.’ (Sinha, R 2007). This essay is going to focus on how strategic human resource management helps organizations achieve a sustained competitive advantage. Sustainable competitive advantage is the position a firm develops in relation to its competitors that are not duplicable an unsurpassable than its competitors. Recently scholars have come to the basis of HR skills and competences as sources of competitive advantage. Human resource practices as well as competitive strategies are based on the assumption that employee behaviors are needed for each type of competitive strategy and that these behaviors...
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... The growth rate will continue to rise with the demand for movie entertainment. There are a few numbers of rivals, but the industry is consolidating to an even smaller number of competitors. Today the scope of competitive rivalry is a globalized industry but in the beginning of this industry it would have been local, regional and national. The numbers of buyers have been increasing since 2000 with the introduction of new technologies has rapidly increased consumer opportunities to view movies. Consumers could obtain movies through various channels. They could purchase them through retailers such as Wal-Mart, Best Buy, and Amazon or they could subscribe to Netflix or Blockbuster and have movies directly mailed to their own homes. They could also subscribe to any cable movie channel to order movies instantly streamed to their TV’s on a pay-per-view basis. The degree of production differentiation is low since movies are a commodity. Customer can either get their product through digital streaming online, by mail, vending machine, Video on Demand (VOD) or in stores and all be the same product and quality. Concerns with production innovation, the movie rental industry should continually pay attention to research and development to gain competitive advantage over rivals by being first to market with a new product. A new product for this industry has...
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...3.0 Findings This article aimed at determining components of CRM strategy and its effects to competitive advantage achievement. The findings of this article highlight the effects of CRM on competitive advantage and the components of CRM strategies. The findings were synthesized and summarized from few previous researches’ results which studied the topic of CRM. There are few components of CRM such as the components of perception and customers’ separation, attracting and protecting customers being faithful (making loyalty), emphasis on quality, improving and specializing the relations with the customers (customization), complaint investigation, invest in internal people, and relationship-based interfaces (Mehrdad & Hallaj, 2011; Aihie & Az-Eddine,...
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...Cand. Merc. IMM INTERNATIONAL MARKETING AND MANAGEMENT “Is there an optimal strategic approach in gaining superior financial performance in a hypercompetitive environment?” Topic no. 2 Authors: Kristofer Edholm Alexandra Johansen Advisor: Magdalena Dobrajska Date of Hand-in: 19/12 – 2012 “IS THERE AN OPTIMAL STRATEGIC APPROACH IN GAINING SUPERIOR FINANCIAL PERFORMANCE IN A HYPERCOMPETITIVE ENVIRONMENT?” ABSTRACT Hypercompetition has made competition more aggressive, and effective strategies have become vital in order for companies to remain competitive in the vigorous marketplace. The paper will study the two most commonly used theories within strategic planning, the Industrial Analysis and the Resource-Based View, to see which is more effective in order to increase financial performance in a hypercompetitive environment. The paper will first look at the overall effect of hypercompetition on the marketplace. Secondly, the Industrial Analysis effect on financial performance in hypercompetition will be examined, and thirdly, the effect the Resource-Based View has on financial performance considering hypercompetitive challenges. Finally, the paper ends by concluding that a strategy based on RBV will have greater effect on financial performance in a hypercompetitive environment, which suggests that managers' should spend more resources concerning companies' internal environment than the external in order to increase their return on investments. 2 INTRODUCTION ...
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...within today’s competitive market. Competition in both domestic and foreign markets is increasing steadily, making it mandatory for companies to keep a global focus and strategy to maintain or grow their current market share. Domestic firms have managed to increase their competitiveness through globalization of processes. For example, some domestic companies have managed to outsource many of their engineering and technological development to other countries which decreases overhead expense. This type of function allows the company to drive out cost and become more attractive in its domestic environment. Companies have also looked at the purchasing process and have opted to purchase their supplies from differing global suppliers. These globally sourced products are relatively cheaper than domestic products, which again drives cost out and helps maintain a company’s competitive advantage. Domestic firms have also streamlined the communication process as a means of improving the global communication process through internet, instant messenger, cell-phones, etc. Companies that have lowered transportation costs in a global environment will have a great competitive advantage over other organizations whose process is not as streamlined. Domestic firms that are able to ship and receive goods quickly, for low cost will increase their competitiveness in the market. Lastly, a domestic company’s global strategic process can undoubtedly increase the firm’s competitive advantage. If a company...
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...STRATEGIC MANAGEMENT MGMT E -5000 WALMART CASE ANALYSIS BY Indhu SEPTEMBER 19th, 2012 SWOT Analysis of Wal-Mart: (2008- 2010) EXTERNAL ANALYSIS: Significant findings on the PESTEL analysis were:(Refer Fig 1 ) * Socio Cultural factor: One of the most important concerns among consumers during that period was price. Since its establishment Walton focused on Everyday low prices (EDLP) and always geared towards the low- income groups of the society. This provided Walmart better opportunities and helped them gain a competitive advantage in the industry. * Demographic factor: Another opportunity facing the industry was that Consumers (working Mothers and other American workers) wanted ease of shopping (fast, efficient and one-stop shopping). Walmart provided its customers with what they want in the Walmart supercenters combined with its wholesale unit “Sam’s Club”. * Technological Factor: Heightening of Internet users (70% of the population) and more people were comfortable shopping online. This yielded both favorable (lower over head costs and convenience to the customers with wide choices of items and prices that were appealing) and unfavorable (Walmart has invested heavily on the infrastructure like the EDI links and POS systems) circumstances. * Economic Factor: Domestically the U.S market had a very slow growth. Although the economy was said to be in recession it favored the growth of the organization because it offered consumers commodities at a...
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...During the last ten years the market environment has been changing constantly. The people have high access to information through the Internet, for instance in Asia-Pacific the Internet access market grew by 18.7% in 2005 to generate total revenues of $30.5 billion. This represents a compound annual growth rate of 24.3% for the five years period spanning 2001-2005 (DataMonitor:2006). The international commercial deregulation offered to countries such as China (China’s economy grew by 10.1% in 2004 and by 10.2% in 2005 – Business Monitor International) the opportunity to explore new markets and to offer labour low costs and high quality products for international markets. On the other hand, and at the same time, the female workers rate is increasing year by year, generating new trends, opportunities and demand for new products. The eminent risk of terrorist attacks brought new concerns for governments and companies in their transactions during the manufacturing process. According to Euro Monitor International, just in the USA 45.07% of the total female population was employed in 2005 from 41.99% in 1990. In response and adaptation to the facts showed above, companies have...
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...Exercise Two Development of the Cochlear implant: Drawing upon New Trade Theory and Porter’s Theory of National Competitive Advantage as discussed in the lecture, outline the case for government assistance to emerging industries. Relate your answer to the Cochlear Case. Without government funding, would it have been possible to develop this product in Australia? Prior to government funding, Professor Clark was able to reach the prototype stage of the development of the Cochlear Implant. However, without government funding, there would have been inadequate finances and resources to commercialise the product and make it available to the public. The Australian governments role in the development of this product supports the theory of government role in supporting emerging products outlined in Porters Theory of National Competitive Advantage. The theory outlines that through strict product standards, focus on specialised factor creation and enforcing antitrust laws, governments can encourage organisations to a more competitive level. Australia has advantageous “Factor Conditions” for the development of a technology such as the Cochlear implant, due to being a first world country with leading technology. The “Demand Conditions” for the Cochlear Implant stretched further than simply Australia - as evident by the 50,000 cases in Japan. Furthermore, the supporting industries - such as “Nucleus” aided in the internationalisation of the product as it progressed into...
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