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More acceptable reasons for diversification these days are the potential for operational and strategic benefits. (1) eliminating and preventing competition by subsidizing a price war, (2) reducing rivalry through mutual…
Broadly speaking, there are two types of competitive advantage a firm may pursue: low cost or uniqueness Firms may choose to target a broader or narrower segment of the market.…
major sets of activities, skills, and resources that drive value to customers. at the time of strategy formulation, when firms are assessing which strategic options are currently feasible—and may be…
Growth results from scaling new products and services up the S-curve and also occurs from the continuous creation of new S-curves. So in one sense, the purpose of strategy is…
(1) rivalry among current competitors, (2) threat of new entrants, 1. Entrant faces high sunk costs 2. Incumbents have a competitive advantage. 3. Entrant faces retaliation. (3) substitutes and complements,…
Environmental analysis (sometimes referred to as “environmental scanning”) is the analysis of factors in the larger competitive context that are currently affecting, or may in the future influence, the nature…
The remaining vendors may profit from their ventures but will likely make no more than their opportunity cost. This is what economists refer to as economic profit or economic rents.…
An organization’s strategic goals, or objectives, refer to the organization’s mission, its unique purpose and scope. The strategic plan, sometimes called strategic intent, is how the organization tailors its offerings…
Two different people have asked me this question this week, so I thought I would write out my answer. My approach is slightly unorthodox, but here goes: 1. Go to…