Core Competencies A core competency is a concept in management theory originally advocated by CK Prahalad‚ and Gary Hamel‚ two business book writers. In their view a core competency is a specific factor that a business sees as being central to the way it‚ or its employees‚ works. It fulfills three key criteria: 1. It is not easy for competitors to imitate. 2. It can be re-used widely for many products and markets. 3. It must contribute to the end consumer’s experienced benefits. C.K. Prahalad and
Premium Strategic management Management
order to gain competitive advantage. The strategies relate to the extent to which the scope of a business’ activities are narrow versus broad and the extent to which a business seeks to differentiate its products. The differentiation and cost leadership strategies seek competitive advantage in a broad range of market or industry segments. By contrast‚ the differentiation focus and cost focus strategies are adopted in a narrow market or industry. Cost leadership With this strategy‚ the objective is to
Premium Marketing Strategic management Organization
product differentiation. Distribution is the most important because Sara Lee is widely globalized corporation‚ good distribution is necessary to remain competitive. Low cost is vital when competing in foreign markets against local and regional competitors with fewer costs. Higher capacity utilization will lead to improvement in economies of scale. Brand recognition allows companies to generate sales in current and new markets based on reputation. The importance of product differentiation is largely
Premium Marketing Capacity utilization Economics
A business-level strategy is an integrated and coordinated set of commitments and actions that firms use to gain a competitive advantage by exploiting core competencies in specific product market. Only firms that continuously upgrade their competitive advantages over time are able to achieve long-term success with their business-level strategy. Effective management of customer relationships help the firms answer questions related to the issues of who‚ what‚ and how. Customers are the foundation
Premium Strategic management Management Customer
Chapter 4: BUSINESS-LEVEL STRATEGY (chapter 5 in the textbook) 1 “I surf to where hockey balls will be there…. not where it has to roll over.” - Wayne Gretsky 2 Strategic model Company Environment Strategy 4 levels of strategy • Function-level strategy • Business-level strategy • Corporate-level strategy • International strategy 3 Business Strategy - BUSN 162 1 Business-level strategy Business-level strategy: an integrated and coordinated set of Businessstrategy:
Premium Product differentiation Strategic management Marketing
and margins squeezed c. Barriers i. Economies of scale à decline per unit cost while production per unit increases. ii. Product differentiation à uniqueness. Achieved as a result of unique product attributes or effective marketing communications‚ or both.
Premium Marketing Strategic management Positioning
unit sold. 3. The major avenues for achieving a cost advantage over rivals include A. eliminating or curbing non-essential cost-producing activities and performing essential value chain activities more cost-effectively that rivals. 4. A differentiation-based competitive advantage E. often hinges on incorporating features that (1) raise the performance of the product or (2) lower the buyer’s overall costs of using the company’s product or (3) enhance buyer satisfaction in intangible or non-economic
Premium Marketing Value chain Strategic management
a distinct advantage by capitalizing on the strengths of the organization and the industry it is in. He has argued that a firm’s strengths ultimately falls into either cost advantage or differentiation‚ which applied either broadly or narrowly results in three generic strategies: cost leadership‚ differentiation‚ and focus. They are called generic strategies because they are not firm or industry dependent and are applied at the business unit level. The first generic strategy is cost leadership
Premium Marketing Strategic management Management
and whether they are a risk-taker or risk-avoider. B) the different ways that companies try to cope with the five competitive forces. C) whether a company’s market target is broad or narrow and whether the company is pursuing a competitive advantage linked to low cost or differentiation. D) the kinds of actions companies
Premium Strategic management Value chain Product differentiation
Strategic Approach to HR Successful business and profit Differentiation strategy • A differentiation strategy calls for creating a product or service with sufficiently distinctive attributes that it sets your business apart from the competition. Attributes of differentiation strategy • highly skilled and creative productdevelopment personnel • a strong sales force • a strong reputation for quality and innovation. Differentiation strategy for hotel • • • 5 star hotel premium price best‚ most
Premium Human resource management Skill