Strategy Analysis And Practice Study Gu

Topics: Positioning, Competition, Corporate social responsibility Pages: 4 (893 words) Published: December 5, 2014

Due to technological change, substitute products can mean cheaper price OR better value; such as iPod for MP3 Porter’s 5 forces talks about the external things
Value differentiation and price differentiation
ROIC: return on invested capital; eg. Ryanair has lower profit margins because initial investment is high The more you have control over the industry the safer for you; 一條龍vertical integration Positioning (vision statement)

Differentiated competitor: has both value and price; but focuses on one thing Competitor with dual advantage: balances both value and price Two types of positioning: cost leadership; quality leadership Base price on supplier, buyer, and competitors

Always set your price lower than a buyer’s willingness to pay Return on sales (ROS)
Return on equity (ROE)
Return on asset (ROA)
Quality differentiation: to push WTP up
Communicate reasons for higher WTP

Week 2 (Apple)
Supplier power: ex. Intel chips
Power of supplier and buyer depends on the number and relationship (goodwill, reputation) Consider complementors when analyzing technological industry (iPod needed iTunes to beat Windows Media Player)

Week 3 (Husky)
Process differentiation: how you do things
Scope: geography (where), consumer (for whom), product (what) Two types of sales: B2B (EoS smaller) and B2C
Deviating from mission statement can be a risk because profits may erode and you may go from a force specialist to a generalist Change will destroy internal consistency

Week 3 (Ducati)
If scope and differentiation is clear, position will be good (focus +differentiation = attractive position) VRIN: valuable, rare, inimitable, nonsubstitutable
Products and services should be superior on at least one feature: durability, image, speed of delivery, variety, ease of use etc. In the industry, you need multiple differentiation factors (ex. Retail industry: you need store experience, trendiness, etc)

Week 4 (Ryanair)
Don’t enter industry if: rich competitors,...
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