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IBE312: Ch18 – Business Strategy

IBE312: Ch18 – Business Strategy. 2013. Business Strategy. Fig. 18-1 feedback loop of business strategy and IA (M&R)

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IBE312: Ch18 – Business Strategy

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  1. IBE312: Ch18 – Business Strategy 2013

  2. Business Strategy Fig. 18-1 feedback loop of business strategy and IA (M&R) • Competitive advantage – “Competitive advantage grows out of value a firm is able to create for its buyers that exceeds the firm’s cost of creating it. Value is what buyers are willing to pay, and superior value stems from offering lower prices than competitors for equivalent benefits or providing unique benefits that more than offset a higher price. ” (Porter, Competitive Advantage of Nations, 1990, p.73) • Competitive strategies - Cost leadership (operational effectiveness), Differentiation (innovative products, better customer service, etc)

  3. Defining Business Strategy • Michael Porter – On Competition – says do it betterthanthe rivals at same or lowercost. - that is: • ”Operationaleffectivenessmeansperformingsimilaractivitiesbetterthan rivals performthem. Operationaleffectivenessincludesbutis not limited to efficiency.”

  4. Alignment • Of the IA withthe business strategy • Stakeholder interviewscanhelp reveal thecompanystrategy. Questions to ask: • What is thecompanygood at? • ..bad at? • What makes thecompanydifferent from yourcompetitiors? • Howareyouable to beat competitors? • Howcanyour web site or intranetcontribute to competititveadvantage?

  5. StrategicFit • Activity system maps – a tool for examinigstrategicfit. Seestrategicfitbetweenactivities. • Canthe business strategy be seen in thewebsite design?

  6. Business Strategy (cont.) • Exposing gaps in the business strategy: • One best way (SWOT) - but not the only way • Many good ways (the elephant) – The “blind” are we. The elephant is “strategy formulation” or “IA”.

  7. ManyGoodWays • p388

  8. CompetitiveAdvantage • Moore says ”most peoplefocusonthetoplayerofdifferentiatedofferings (e.g. branding and positioning), businessescanachieve lasting competitiveadvantageony by building from thebottom up. (M&R, p.390)

  9. IA – invisibility to advantage • Lowerlayers play a criticalrole in building a successfuluserexperience. • Thinkaboutthecompanythatyouareconsulting in Ex3. Fill in whatyou know aboutthatcompanyusingthispyramid.

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