战略管理竞争与全球化Chapter4_Slidesdhpi.pptx

Ch4-1Chapter 4Chapter 4Business-Level StrategyBusiness-Level StrategyMichael A.HittMichael A.HittR.Duane IrelandR.Duane IrelandRobert E.HoskissonRobert E.Hoskisson2000 South-Western College Publishing2000 South-Western College PublishingCh4-2Chapter 4Business LevelStrategySustainableCompetitiveAdvantageChapter 2Chapter 2External EnvironmentExternal EnvironmentChapter 3Chapter 3Internal EnvironmentInternal EnvironmentCh4-3CoreCoreCompetencCompetencyyThe The resourcesresources and and capabilitiescapabilities that have been determined to that have been determined to be a source of competitive be a source of competitive advantage for a firm over its advantage for a firm over its rivals.rivals.Ch4-4StrategyStrategyAn integrated and coordinated An integrated and coordinated set of actions taken to exploit set of actions taken to exploit core competencies and gain a core competencies and gain a competitive petitive advantage.CoreCompetencyThe resources and capabilities that have been determined to be a source of competitive advantage for a firm over its rivals.Ch4-5StrategyAn integrated and coordinated set of actions taken to exploit core competencies and gain a competitive advantage.Business Business Level Level StrategyStrategyActions taken to provide value to Actions taken to provide value to customers and gain a competitive customers and gain a competitive advantage by exploiting core advantage by exploiting core competencies in specific,competencies in specific,individual product markets.individual product markets.CoreCompetencyThe resources and capabilities that have been determined to be a source of competitive advantage for a firm over its rivals.Ch4-6Generic Business Level StrategiesCost Cost Uniqueness UniquenessSource of Competitive Advantage Source of Competitive AdvantageBreadth of Breadth of Competitive Competitive Scope ScopeBroad BroadTarget TargetMarket MarketNarrow NarrowTarget TargetMarket MarketFocused Focused Differen-Differen-tiationtiationCostCostLeadershipLeadershipDifferen-Differen-tiationtiationFocused Focused Low CostLow CostCostLeadershipCh4-7Key Criteria:Key Criteria:Cost LeadershipCost Leadership Business Level Strategy Business Level StrategyRelatively standardized productsRelatively standardized productsFeatures acceptable to many customersFeatures acceptable to many customersLowest competitive priceLowest competitive priceCh4-8Requirements:Requirements:Constant effort to Constant effort to reduce costsreduce costs through:through:Building efficient scale facilitiesBuilding efficient scale facilitiesState of the art manufacturing facilitiesState of the art manufacturing facilitiesSimplification of processesSimplification of processesMinimizing costs of sales,R&D and serviceMinimizing costs of sales,R&D and serviceMonitoring costs of activities provided by outsidersMonitoring costs of activities provided by outsidersTight control of production costs and overheadTight control of production costs and overheadCost LeadershipCost Leadership Business Level Strategy Business Level StrategyCh4-9Primary ActivitiesSupportActivitiesTechnological DevelopmentHuman Resource ManagementFirm InfrastructureProcurementInbound LogisticsOperationsOutboundLogisticsMarketing&SalesServiceMARGINMARGINValue Creating ActivitiesValue Creating Activities Common to a Common to a Cost LeadershipCost Leadership Business Level StrategyBusiness Level StrategyCh4-10Primary ActivitiesSupportActivitiesTechnological DevelopmentHuman Resource ManagementFirm InfrastructureProcurementInbound LogisticsOperationsOutboundLogisticsMarketing&SalesServiceMARGINMARGINCost Effective MIS SystemsRelatively Few Management Layers to Reduce OverheadSimplified Planning Practices to Reduce Planning CostsConsistent Policies to Reduce Turnover CostsEffective Training Programs to Improve Worker Efficiency and Effectiveness Highly Efficient Systems to Link Suppliers Products with the Firms Production ProcessesTiming of Asset PurchasesEfficient Plant Scale to Minimize Manufacturing CostsSelection of Low Cost Transport CarriersDelivery Schedule that Reduces CostsNational Scale AdvertisingProducts Priced to Generate Sales VolumeSmall,Highly Trained Sales ForceEffective Product Installations to Reduce Frequency and Severity of RecallsEasy-to-Use Manufacturing TechnologiesInvestments in Technology in order to Reduce Costs Associated with Manufacturing ProcessesSystems and Procedures to find the Lowest Cost Products to Purchase Raw MaterialsFrequent Evaluation Processes to Monitor Suppliers PerformancesLocated in Close Proximity with SuppliersPolicy Choice of Plant TechnologyOrganizational LearningEfficient Order SizesInterrelationships with Sister UnitsValue Creating ActivitiesValue Creating Activities Common to a Common to a Cost LeadershipCost Leadership Business Level StrategyBusiness Level StrategyCh4-11How to Obtain a Cost AdvantageHow to Obtain a Cost Advantage1.Determine and Control Cost Drivers1.Determine and Control Cost Drivers2.Reconfigure the 2.Reconfigure the Value ChainValue Chain as needed as neededAlter production processAlter production processChange in automationChange in automationNew distribution channelNew distribution channelDirect sales in place of Direct sales in place of indirect salesindirect salesNew advertising mediaNew advertising mediaNew raw materialNew raw materialBackward integrationBackward integrationForward integrationForward integrationChange location relative Change location relative to suppliers or buyersto suppliers or buyersCh4-12Reconfiguring the Value ChainReconfiguring the Value Chainof Iowa Beef Packers(IBP)of Iowa Beef Packers(IBP)Ranch Ranch Ranch CattleCattleCattleShip“on the Ship“on the Ship“on the Hoof”to Rail Hoof”to Rail Hoof”to Rail Center Center Center(Chicago)(Chicago)(Chicago)Slaughter Slaughter Slaughter into sides into sides into sides of beefof beefof beef“Boxed“Boxed“Boxed Cuts”at Cuts”at Cuts”at MarketsMarketsMarketsOld Old Way:Way:Save on shipping and cattle weight lossSave on shipping and cattle weight lossUtilize cheaper non-union rural laborUtilize cheaper non-union rural laborNewWayNew New Way:Way:Locate large Locate large Locate large automated automated automated plants near plants near plants near ranchesranchesranchesProcess into Process into Process into“Boxed Cuts”at“Boxed Cuts”at“Boxed Cuts”at plantsplantsplantsShip cuts Ship cuts Ship cuts already already already“Boxed”to“Boxed”to“Boxed”to MarketsMarketsMarketsCh4-13Choices That Drive CostsChoices That Drive CostsEconomies of scaleEconomies of scaleAsset utilizationAsset utilizationCapacity utilization patternCapacity utilization patternValue chain linkagesValue chain linkagesInterrelationshipsInterrelationships-Advertising&Sales-Advertising&Sales-Logistics&Operations-Logistics&Operations-Seasonal,cyclical-Seasonal,cyclical-Order processing-Order processing and distribution and distributionProduct featuresProduct featuresProduct featuresProduct featuresPerformancePerformanceMix&variety of productsMix&variety of productsService levelsService levelsSmall vs.large buyersSmall vs.large buyersProcess technologyProcess technologyWage levelsWage levelsHiring,training,motivationHiring,training,motivationCh4-14Three Key QuestionsThree Key Questions2.How can a group of linked value activities be regrouped or reordered?3.How might coalitions with other firms lower or eliminate costs?Gallo sold wine through grocery stores rather than liquor Gallo sold wine through grocery stores rather than liquor stores because they were more efficient distributorsstores because they were more efficient distributors1.How can an activity be performed differently or even eliminated?Ch4-15Effective Effective Cost Leaders Cost Leaders can remain can remain profitable even when the profitable even when the Five ForcesFive Forces appear unattractiveappear unattractiveCh4-16Can frighten off Can frighten off New Entrants New Entrants due to the need to:due to the need to:Enter at large scale to Enter at large scale to be Cost Competitivebe Cost Competitive*Take time to move down Take time to move down the“Learning Curve”the“Learning Curve”*Effective Cost Leaders can remain profitable even when Effective Cost Leaders can remain profitable even when the the Five ForcesFive Forces appear unattractive appear unattractiveThreat of Threat of New New EntrantsEntrantsCh4-17Can frighten off New Entrants due to the need to:Enter at Large Scale to be Cost Competitive*Take time to move down the“Learning Curve”*Bargaining Bargaining Power of Power of BuyersBuyersThreat of New EntrantsCan mitigate Can mitigate Buyer Power Buyer Power by:by:*Driving prices far below competitors Driving prices far below competitors may cause exit and shift power back may cause exit and shift power back to firmto firmEffective Cost Leaders can remain profitable even when Effective Cost Leaders can remain profitable even when the the Five ForcesFive Forces appear unattractive appear unattractiveCh4-18Can frighten off New Entrants due to the need to:Enter at Large Scale to be Cost Competitive*Take time to move down the“Learning Curve”*Can mitigate Buyer Power by:Threat of New EntrantsBargaining Power of BuyersDriving prices far below competitors which may cause exit and shift power back to firmWell positioned relative toWell positioned relative toWell positioned relative to SubstitutesSubstitutesSubstitutes in order to:in order to:in order to:Make investments to create Make investments to create Make investments to create substitutes firstsubstitutes firstsubstitutes first*Buy patents developed by Buy patents developed by Buy patents developed by potential substitutespotential substitutespotential substitutes*Lower prices to maintain Lower prices to maintain Lower prices to maintain value positionvalue positionvalue position*Threat of Threat of Substitute Substitute ProductsProductsEffective Cost Leaders can remain profitable even when Effective Cost Leaders can remain profitable even when the the Five ForcesFive Forces appear unattractive appear unattractiveCh4-19Can frighten off New Entrants due to the need to:Enter at Large Scale to be Cost Competitive*Take time to move down the“Learning Curve”*Well positioned relative to Substitutes in order to:Make investments to create substitutes*Can buy patents developed by potential substitutes*Lower prices to maintain value position*Bargaining Bargaining Power of Power of SuppliersSuppliersThreat of New EntrantsThreat of Threat of Substitute Substitute Products ProductsCan mitigate Buyer Power by:Bargaining Power of BuyersDriving prices far below competitors which may cause exit and shift power back to firmCan mitigate Can mitigate Supplier Power Supplier Power by:by:Low cost position makes them better Low cost position makes them better able to absorb cost increasesable to absorb cost increases*More likely to make very large purchases More likely to make very large purchases which reduces chance of supplier powerwhich reduces chance of supplier power*Effective Cost Leaders can remain profitable even when Effective Cost Leaders can remain profitable even when the the Five ForcesFive Forces appear unattractive appear unattractiveCh4-20Effective Cost Leaders can remain profitable even when Effective Cost Leaders can remain profitable even when the the Five ForcesFive Forces appear unattractive appear unattractiveThreat of New EntrantsBargaining Power of SuppliersThreat of Substitute ProductsCan frighten off New Entrants due to the need to:Enter at Large Scale to be Cost Competitive*Take time to move down the“Learning Curve”*Well positioned relative to Substitutes in order to:Make investments to create substitutes*Can buy patents developed by potential substitutes*Lower prices to maintain value position*Competitors avoid Competitors avoid price wars with Cost price wars with Cost Leaders,which Leaders,which creates higher profits creates higher profits for entire industryfor entire industryRivalry Among Rivalry Among Competing Firms Competing Firms in Industryin IndustryCan mitigate Buyer Power by:Bargaining Power of BuyersDriving prices far below competitors which may cause exit and shift power back to firmCan mitigate Supplier Power by:Low cost position makes them better able to absorb cost increases*More likely to make very large purchases which reduces chance of supplier power*Ch4-21Major Risks of Cost LeadershipMajor Risks of Cost LeadershipBusiness Level StrategyBusiness Level StrategyDramatic technological change could take away your cost advantageCompetitors may learn how to imitate Value ChainFocus on efficiency could cause Cost Leader to overlook changes in customer preferencesCh4-22Breadth of Competitive ScopeSource of Competitive AdvantageBroadTargetMarketNarrowTargetMarketCostCostCostLeadershipLeadershipUniquenessGeneric Business Level StrategiesGeneric Business Level StrategiesCh4-23Breadth of Competitive ScopeSource of Competitive AdvantageBroadTargetMarketNarrowTargetMarketCostCostCostLeadershipLeadershipDifferen-Differen-tiationtiationGeneric Business Level StrategiesGeneric Business Level StrategiesUniquenessCh4-24Key Criteria:Key Criteria:DifferentiationDifferentiation Business Level Strategy Business Level StrategyValue provided by unique features Value provided by unique features and value characteristicsand value characteristicsCommand premium priceCommand premium priceSuperior qualitySuperior qualityRapid innovationRapid innovationPrestige or exclusivityPrestige or exclusivityHigh customer serviceHigh customer serviceCh4-25DifferentiationDifferentiation Business Level Strategy Business Level StrategyRequirements:Constant effort to differentiate products through:Constant effort to differentiate products through:Developing new systems and processesDeveloping new systems and processesQuality focusQuality focusMaximize Human Resource contributions Maximize Human Resource contributions through low turnover and high motivationthrough low turnover and high motivationCapability in R&DCapability in R&DShaping perceptions through advertisingShaping perceptions through advertisingCh4-26Primary ActivitiesSupportActivitiesTechnological DevelopmentHuman Resource ManagementFirm InfrastructureProcurementInbound LogisticsOperationsOutboundLogisticsMarketing&SalesServiceMARGINMARGINValue Creating Activities Common to a Differentiation Business Level StrategyCh4-27Technological DevelopmentHuman Resource ManagementFirm InfrastructureProcurementInbound LogisticsOperationsOutboundLogisticsMarketing&SalesServiceMARGINMARGINA companywide emphasis on producing high quality productsHighly Developed Information Systems to better understand customers purchasing preferencesCompensation programs intended to encourage worker creativity and productivityExtensive use of subjective rather than objective performance measuresSuperior handling of incoming raw materials to minimize damage and improve the quality of the final productRapid responses to customers unique manu