The Contribution of Technology to Competitive Advantage
THE CONTRIBUTION OF TECHNOLOGY TO COMPETITIVE ADVANTAGE (Theodore W. Schille)
• According to Schille..
“An essential component of managing technology is recognizing the role that technology plays in the competitive success of a firm in a free market economy, and acting to ensure that technology decisions and policies contribute to the firm’s competitive advantage.”
DEFINING COMPETITIVE STRATEGY AND COMPETITIVE ADVANTAGE
Traditional approach to strategy..
– Emphasizing goals and developing means to match the firm’s resources with opportunities in the external environment and deciding where to compete.
Three levels
Corporate Strategy
Competitive Strategy
Functional Policies
• Corporate Strategy
Concerned with the overall purpose and scope of the business to meet stakeholder expectations.
, there is the multi industry-business firm, the conglomerate or the diversified firm, of which there are many examples, such as General Electric. At this level, corporate strategy addresses issues such as choosing which industries or businesses to be in, utilizing portfolio management techniques to achieve a balance among the industries or business chosen, andin the case of diversified firm achieving synergy among the industries or business chosen.
• Competitive Strategy
Concerned in the division level of a multi-industry business.
• As Michael E. Porter said
– Essentially, developing a competitive strategy is developing a broad formula for how a business is going to compete, what its goals should be, and what policies will be needed to carry out those goals.
• Functional Policies
Basically the functions of the firm such as engineering, manufacturing and production, marketing, sales, service, personnel and human resources, purchasing, accounting, finance, planning, etc.
Concerned on the structure the organization, allocating resources, and rewarding people.
CHARACTERISTICS OF COMPETITIVE STRATEGY
• Top management responsibility
– There must be
• According to Schille..
“An essential component of managing technology is recognizing the role that technology plays in the competitive success of a firm in a free market economy, and acting to ensure that technology decisions and policies contribute to the firm’s competitive advantage.”
DEFINING COMPETITIVE STRATEGY AND COMPETITIVE ADVANTAGE
Traditional approach to strategy..
– Emphasizing goals and developing means to match the firm’s resources with opportunities in the external environment and deciding where to compete.
Three levels
Corporate Strategy
Competitive Strategy
Functional Policies
• Corporate Strategy
Concerned with the overall purpose and scope of the business to meet stakeholder expectations.
, there is the multi industry-business firm, the conglomerate or the diversified firm, of which there are many examples, such as General Electric. At this level, corporate strategy addresses issues such as choosing which industries or businesses to be in, utilizing portfolio management techniques to achieve a balance among the industries or business chosen, andin the case of diversified firm achieving synergy among the industries or business chosen.
• Competitive Strategy
Concerned in the division level of a multi-industry business.
• As Michael E. Porter said
– Essentially, developing a competitive strategy is developing a broad formula for how a business is going to compete, what its goals should be, and what policies will be needed to carry out those goals.
• Functional Policies
Basically the functions of the firm such as engineering, manufacturing and production, marketing, sales, service, personnel and human resources, purchasing, accounting, finance, planning, etc.
Concerned on the structure the organization, allocating resources, and rewarding people.
CHARACTERISTICS OF COMPETITIVE STRATEGY
• Top management responsibility
– There must be