STEP 5 Resource Gap (what needs to be filled in, what is missing, )

STEP 4 STRATEGY (Step 1,2,3 & 5)

STEP 3 COMPTETITIVE ADVANTAGE. Sustaining (maintaining) through:

  1. Valuable resources: using resources in a way that will achieve effectiveness and efficiency (Toyota)
  2. Rare resources: using resources that others don’t have: e.g the technology that Apple uses
  3. Can the resources be imitated: difficult for others to do the same e.g Harley Davidson with custom made, 3-D TV
  1. Unique location: coffee beans grow in certain areas that make the farmers or manufacturers enjoy the unique location. E.g manufacturing tea/rice
  1. Path dependency: the business’s unique experiences, the path (method, strategy) that it is depended on to gain experience in different markets. E.g KPMG Fakhroo and its experiences over the years. Coke and Pepsi and their unique experiences in various markets
  1. Causal Ambiguity: the relationship between the resources of the organization is not clear to others. How the organization combines its resources is not clear to the competitors. E.g the way British Airways is using its resources and coordination between its resources is not very clear for the other airlines how they do their business exactly and how they have become successful
  1. Social complexity. Networking and relationships that the organization has within its organization and outside. E.g Richard Branson of Virgin Airlines, virgin stores, virgin trains: has strong networks everywhere, and has contributions towards society and charity.

STEP 2 CAPABILITIES. Competencies: 1) Core, 2) Distinctive

STEP 1 RESOURCES. Tangible / Intangible

1

CH. 7 BUS9INESS LEVEL STRATEGY

What is Business Level Strategy p.184

- Experience Curve pp.189. The more the business has experience the more it will be able to reduce the unit per cost and increase the output.

- Risks of Cost p.190

- Risks of Differentiation p.194

- Criticisms of the Generic Strategies p.200-201

1

- PLC p.206-208 (only brief idea of the Product Life Cycle)

- Strategy Formulation & Market Turbulence p.209-212

A] Competence-Enhancing disruptions: Making the competencies more valuable

B] Competence-Destroying disruptions: They may destroy the competencies of the industry by events such as customers' tastes, change in technology, obsolescence of a competence.

These Disruptions may occur infrequently or constantly which results in different patterns of turbulence within the industry as follows:

1)Equilibrium: Long periods of little or no competence-destroying turbulence. Well known companies with high reputation. Hienz, Kraft, Furniture, some clothes manufacturers

2)Fluctuating Equilibrium: rapid turbulence based on frequent competence-enhancing disruptions. E.g Electronic, watches, ,designers.

3)Punctuated Equilibrium: brief periods of competence-destroying. IT industry, TV, some car manufacturers, flash memories replaced CDs.

4)Disequilibrium: frequent disruptions. E.g commercial banks, software programs, telecommunications

CH. 8 SUMMARY – CORPORATE LEVEL STRATEGY

1

1

1

1