phil gorman, ph.d. 1. strategic management the holy grail of strategic management is creating...
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STRATEGIC MANAGEMENT: “COMPETITIVE STRATEGY,” OR “BUSINESS STRATEGY”
Phil Gorman, Ph.D.
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Strategic management
The holy grail of strategic management is creating “sustainable competitive advantage”
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Strategic management
If you have competitive advantage then that means there is something important that you do better than your competitors
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Strategic management
But then you also want your competitive advantage to be sustainable
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Sustainable competitive advantage Your business must have something
that is meets the following four tests: Valuable Rare Hard to copy No good substitute
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Sustainable competitive advantage Your business must have something
that is meets the following four tests: Valuable Rare Hard to copy No good substitute
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Sustainable competitive advantage Your business must have something
that is meets the following four tests: Valuable Rare Hard to copy No good substitute
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Sustainable competitive advantage Your business must have something
that is meets the following four tests: Valuable Rare Hard to copy No good substitute
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Sustainable competitive advantage Your business must have something
that is meets the following four tests: Valuable Rare Hard to copy No good substitute
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Sustainable competitive advantage Example: Mobil-Exxon
Valuable Rare Hard to copy No good substitute
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Generic business strategies
Source of advantage
Low cost Differentiation
Broad
Narrow
Competitive
breadth
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Generic business strategies
Source of advantage
Low cost Differentiation
Broad
Narrow
Competitive
breadth
Note “cost” is not the same as “price”
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Generic business strategies
Source of advantage
Low cost Differentiation
Broad
Narrow
Competitive
breadth
GeneralMotors
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Generic business strategies
Source of advantage
Low cost Differentiation
Broad
Narrow
Competitive
breadth
Swatch
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Generic business strategies
Source of advantage
Low cost Differentiation
Broad
Narrow
Competitive
breadth Lincoln Electric
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Generic business strategies
Source of advantage
Low cost Differentiation
Broad
Narrow
Competitive
breadthHampshire College
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Generic business strategies
Source of advantage
Low cost Differentiation
Broad
Narrow
Competitive
breadthUsually
would be “stuck in
the middle”
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Generic business strategies
Source of advantage
Low cost Differentiation
Broad
Narrow
Competitive
breadth Dell = process
innovation
Sustainable competitive advantage!
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Competitive strategy
The holy grail of strategic management is creating “sustainable competitive advantage”
You must choose a strategy; these choices can be difficult but without making the hard choices you will not achieve sustainable competitive advantage!
Four tests: Valuable Rare Hard to copy No good substitute
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Competitive strategy
The holy grail of strategic management is creating “sustainable competitive advantage”
You must choose a strategy; these choices can be difficult but without making the hard choices you will not achieve sustainable competitive advantage!
Four tests: Valuable Rare Hard to copy No good substitute
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Competitive strategy
The holy grail of strategic management is creating “sustainable competitive advantage”
You must choose a strategy; these choices can be difficult but without making the hard choices you will not achieve sustainable competitive advantage!
Four tests: Valuable Rare Hard to copy No good substitute
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Competitive strategy
The holy grail of strategic management is creating “sustainable competitive advantage”
You must choose a strategy; these choices can be difficult but without making the hard choices you will not achieve sustainable competitive advantage!
Four tests: Valuable Rare Hard to copy No good substitute