Organisational Management
Theme 2: Competitive Environment of Organisations
Competition and Business Strategy in Historical Perspective (2002)
- P. Ghemawat (not really asked but gives background)
Are You Sure You Have a Strategy? (2001)
- D.C. Hambrick and J.W. Fredrickson
How Competitive Forces Shape Strategy(1979)
- M. Porter
Profit Pools: A Fresh Look at Strategy (1998)
- O. Gadiesh and J.L. Gilbert
Getting Real about Virtual Commerce (1999)
- P. Evans and T. Wurster
Question 3 2010
In the context of strategic thinking, Hambrick and Fredrickson identify 5 elements that a sucessful strategy must have. One is differentiators.
Explain what is meant by differentiator, illustrate with examples of sucessful differentiators from the world of business.
The 5 elements of a successful strategy are:
Arenas
Vehicles
Differentiators
Staging
Economic Logic
Arenas: Where will we be active? With how much emphasis? Which market segments? Which geographic areas? Which core technologies? Which value-creating stages?
Vehicles: How will we get there? Internal development? Joint ventures? Licensing/ franchising? Acquisitions? Which channels?
Differentiators: How will we win? The reason customers will choose us Image? Customization? Price? Styling? Prodoct reliablity?
Staging: What will be our speed and sequence of moves?
Driven by availability of resources, urgency, need for credibility and need for early wins,
Speed of expansion?
Sequence of initiatives
Economic Logic: How will we obtain our returns? How profits will be generated, above the firms cost capital Lowest costs through scale advantages? Lowest costs through scope and replication advantages? Premium prices due to unmatchable service? Premier proce doe to proprietary feature? What generates cash? What decides your margain? What generates market share growth How fast do sales turn into cash?
Competition and Business Strategy in Historical Perspective (2002)
- P. Ghemawat (not really asked but gives background)
Are You Sure You Have a Strategy? (2001)
- D.C. Hambrick and J.W. Fredrickson
How Competitive Forces Shape Strategy(1979)
- M. Porter
Profit Pools: A Fresh Look at Strategy (1998)
- O. Gadiesh and J.L. Gilbert
Getting Real about Virtual Commerce (1999)
- P. Evans and T. Wurster
Question 3 2010
In the context of strategic thinking, Hambrick and Fredrickson identify 5 elements that a sucessful strategy must have. One is differentiators.
Explain what is meant by differentiator, illustrate with examples of sucessful differentiators from the world of business.
The 5 elements of a successful strategy are:
Arenas
Vehicles
Differentiators
Staging
Economic Logic
Arenas: Where will we be active? With how much emphasis? Which market segments? Which geographic areas? Which core technologies? Which value-creating stages?
Vehicles: How will we get there? Internal development? Joint ventures? Licensing/ franchising? Acquisitions? Which channels?
Differentiators: How will we win? The reason customers will choose us Image? Customization? Price? Styling? Prodoct reliablity?
Staging: What will be our speed and sequence of moves?
Driven by availability of resources, urgency, need for credibility and need for early wins,
Speed of expansion?
Sequence of initiatives
Economic Logic: How will we obtain our returns? How profits will be generated, above the firms cost capital Lowest costs through scale advantages? Lowest costs through scope and replication advantages? Premium prices due to unmatchable service? Premier proce doe to proprietary feature? What generates cash? What decides your margain? What generates market share growth How fast do sales turn into cash?