IBUS5002 Week 9 Lecture Notes
SECTION DIVIDER [1 line only]
IBUS 5002
Strategy,
Innovation
&
QUESTIONS
Entrepreneurship
Week 9 -
Turnarounds & the Challenge of Renewal
Dr Richard Seymour
1
agenda
1.
hyper-competition & the challenge facing firms
2.
turnarounds
3.
insights from social enterprise
4.
how to structure for this (?)
5.
experiential economy
2
firms have won (typically) from…
competitive advantage cost advantages
cost leadership
& efficient use of firm assets & supplier inputs
differentiation advantage raise customer benefits & therefore willingness to pay
transaction advantage lower transaction costs or new combinations (these could also be applied as ‘focus’ strategy which achieves cost or differentiation advantages by narrowly focussing on particular segments or geographies)
hyper-competition
Hyper-competition results from the dynamics of strategic manoeuvring among global and innovative combatants. It is a condition of rapidly escalating competition based on price-quality positioning, competition to create new know-how and establish first-mover advantage, competition to protect or invade established product or geographic markets, and competition based on deep pockets and the creation of even deeper pocketed alliances. In hyper-competition the frequency, boldness, and aggressiveness of dynamic movement by the players accelerates to create a condition of constant disequilibrium and change. Market stability is threatened by short product life cycles, short product design cycles, new technologies, frequent entry by unexpected outsiders, repositioning by incumbents, and radical redefinitions of market boundaries as diverse industries merge. In other words, environments escalate toward higher and higher levels of uncertainty, dynamism, heterogeneity of the players, and hostility…
(D’Avini, 1995 p.
the reality is...
Furthermore, as we have discussed
•
opportunities have a natural ‘life cycle’ (e.g. development, growth, shakeout, maturity,
IBUS 5002
Strategy,
Innovation
&
QUESTIONS
Entrepreneurship
Week 9 -
Turnarounds & the Challenge of Renewal
Dr Richard Seymour
1
agenda
1.
hyper-competition & the challenge facing firms
2.
turnarounds
3.
insights from social enterprise
4.
how to structure for this (?)
5.
experiential economy
2
firms have won (typically) from…
competitive advantage cost advantages
cost leadership
& efficient use of firm assets & supplier inputs
differentiation advantage raise customer benefits & therefore willingness to pay
transaction advantage lower transaction costs or new combinations (these could also be applied as ‘focus’ strategy which achieves cost or differentiation advantages by narrowly focussing on particular segments or geographies)
hyper-competition
Hyper-competition results from the dynamics of strategic manoeuvring among global and innovative combatants. It is a condition of rapidly escalating competition based on price-quality positioning, competition to create new know-how and establish first-mover advantage, competition to protect or invade established product or geographic markets, and competition based on deep pockets and the creation of even deeper pocketed alliances. In hyper-competition the frequency, boldness, and aggressiveness of dynamic movement by the players accelerates to create a condition of constant disequilibrium and change. Market stability is threatened by short product life cycles, short product design cycles, new technologies, frequent entry by unexpected outsiders, repositioning by incumbents, and radical redefinitions of market boundaries as diverse industries merge. In other words, environments escalate toward higher and higher levels of uncertainty, dynamism, heterogeneity of the players, and hostility…
(D’Avini, 1995 p.
the reality is...
Furthermore, as we have discussed
•
opportunities have a natural ‘life cycle’ (e.g. development, growth, shakeout, maturity,