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CORPORATE STRATEGY

FORMULATION Competing in these markets via existing operations, diversification, repositioning, Decisions about what markets to compete in CORPORATE STRATEGY Competing by least cost, focus, differentiation Business Strategy Decisions about how to compete in each market

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CORPORATE STRATEGY

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  1. FORMULATION Competing in these markets via existing operations, diversification, repositioning, Decisions about what markets to compete in CORPORATE STRATEGY Competing by least cost, focus, differentiation Business Strategy Decisions about how to compete in each market IMPLEMENTATION Decisions about the actions needed within each functional area Carry out strategy chosen for each function Functional Strategy

  2. Business Strategies

  3. Competitive Advantage Base Lower Cost Differentiation Differentiation COST LEADRSHIP Broad Target Competitive Scope Focused Differentiation Narrow Target COST FOCUS Michael Porter’s Generic Strategies

  4. Skills & Resources Sustained capital investment & access to capital Process engineering skills Intense supervision of labor Products designed for ease of manufacture Low-cost distribution Organizational Req’s Tight cost control Frequent, detailed control reports Structured organization & responsibilities Incentives based on meeting strict quantitative targets Cost Leadership

  5. Skills & Resources Strong marketing abilities Product engineering Creative flair Strong capability in basic research Corporate reputation for quality Strong cooperation from channels Organizational Reqs. Strong coordination among functions, esp. R&D, product development, & marketing Subjective measurement & incentives Amenities to attract highly skilled labor Differentiation

  6. Differentiation Position Low High Cost and Differentiation Pure Cost Low Cost Position No Competitive Advantage Pure Differentiation High

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