Competitive Strategy

Competitive Strategy

HOW should we compete in a given industry

A: Industry analysis

A1.: Five Forces

1. Suppliers

2. barriers to entry

3. substitutes

4. Buyers

5. Rivalry among existing firms

Seven Forces

6. Complements

7. regulation/legal context

A2: Value chain

Supportive Activities: Admin &Infrastructure, HR, IT, Procurement

Inbound Logistics: Raw material, inspection, stock control, parts picking

Operation: Producing, Product testing

Outbound Logistics: Order processing, warehousing, product delivery

Marketing & Sales: Advertising, Promotion, Distribution

Services: After-sale service, consumer retention programs

B: Positions within the industry analysis

B1: Generic Strategies

Creating and sustaining a competitive advantage (Resource based view and international analysis)

Source of competitive Advantage: Cost Leadership or Differentiation

Competitive Scope: Industry, Segment

FOCUS or NICHE

B2: Strategic Groups

Current competitors and potential competitors

B3: Competitor analysis

Objectives, How he will respond, strategy, strengths and weakness

Competitive dynamics (game theory)

Strategy innovation (value creation and value appropriation)

Platform markets (network effects, multi-sided markets)

Corporate Strategy

WHERE