1 / 13

Business Unit Strategy: Concepts & Special Dimensions

Business Unit Strategy: Concepts & Special Dimensions. Michael Seymour Matt Anderson. 3 Contexts (Stages) of Industry Evolution. Emerging Stage High Costs (Often Unpredictable) Technology is Immature Fierce Competition Low Barriers to Entry

bernard-oneill
Download Presentation

Business Unit Strategy: Concepts & Special Dimensions

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Business Unit Strategy: Concepts & Special Dimensions Michael Seymour Matt Anderson

  2. 3 Contexts (Stages) of Industry Evolution • Emerging Stage • High Costs (Often Unpredictable) • Technology is Immature • Fierce Competition • Low Barriers to Entry • Undeveloped Supplier Relationships/Distribution Channels • Growth Stage • Increased Segmentation • Focus Shift to Expanding Market Shares • Customers become More Knowledgeable • Entry of ‘Follower’ Firms • Maturity & Decline Stage • Firm Must Chose Balance Between: • Low-Cost/Differentiation Strategy • Multiple/Single Industry Segments • Declining Growth → Less Forgiving Environment • Attractive Profits are Still Attainable

  3. Exit Decisions • Tend to be Extremely Difficult: • Exit Barriers • “Ripple Effect”

  4. Strategy in Fragmented Markets Fragmented Industry: No Single Company or Small Group of Firms has Large enough Market Share to Strongly Effect Industry Structure/Outcomes • Success is Dependant on Creative Strategizing Ex: H. Wayne Huizinga & Waste Management Corp.

  5. Strategy in Deregulating Environment Deregulation: Lifting of Artificial Entry Constraints that Allows New Players to Enter a Market • (1975) SEC Abolished Fixed Rates for U.S. Securities Brokers • Has both Positive & Negative Impact on Markets

  6. Strategy in Hypercompetitive Industries Hypercompetitive Market: Characterized by Intense Competitive Rivalry, Short Product Life Cycles, Emergence of New Technologies & Major Shifts in Market Boundaries • Success Often Depends on Element of Surprise • 3 Major Qualities Needed to Succeed

  7. Special Dimensions • Speed • Pressures to speed • Requirements of speed • Methods to speed • Consequences of speed • Creating Value through Innovation

  8. Speed • The key to success in more and more industries • How a company responds to meeting customer’s expectations • Public images are synonymous with speed • Ex: Domino’s, AAA

  9. Pressures to Speed • Customer expectations • Need for competitive advantage • Competitor strategies • Industry shifts

  10. Requirements of Speed • Refocused mission • Compatible culture • Communication upgrades • Process reengineering • New metrics

  11. Methods to Speed • Streamline operations • Upgrade technology • Form partnerships

  12. Creating Value through Innovation • Sustaining innovation • Some are incremental, others are breakthroughs • Disrupting innovation • Disrupts established basis of competition • Focus on growth rather than profit • Create a culture of innovation

  13. Culture of Innovation • Steps • Top-level commitment to innovation • Long-term focus • Flexible organization structure • loose and tight planning and control • Include appropriate incentives by creating an environment for innovation

More Related