business strategy ch 6
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BUSINESS LEVEL STRATEGY
Vihar Desai
Nupur Kulkarni
Raj Raval
Bhaumik Patel
Neha Jain
Identifying strategic business units
Issues with S.B.Us• A confusion of S.B.Us• Corporate complexity• Organizational structure
Criteria to identify S.B.Us• Market-based criteria• Capabilities-based criteria
The Strategic Clock
Sustaining
Competitive
Advantage
Price-Based-Accept Reduced Margin-Win a Price War-Reduce Cost-Focus on Specific Segments
Lock-In-Achieve Market Dominance-First Mover Advantage-Reinforcement-Rigorous Enforcement
Differentiation-Create Difficulties of Imitation-Achieve imperfect mobility-Reinvest Margin
Sustaining Competitive Advantage
Competition and collaboration
Collaboration between organization is advantageous to avoid competition or to get full benefit.
Example:- collaboration between manufacturer and logistic company can help them to achieve cost benefit.
By collaboration we can achieve competitive advantages in terms of operation, sales, cost, profit etc. which is shown in fig. [a].
Game theory
It is concerned with the interrelationships between the competitive moves of a set of competitors.
Key Assumptions to understanding competitive dynamics Rationality Interdependence Get in the mind of the competitions Think forwards and reason back words.
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