Samenvatting ‘Exploring Strategy; tekst and
cases’
ISBN: 978-1-292028245 (Eleventh edition)
CH7
CH8
CH9
CH11
CH10
,Inhoudsopgave
Chapter 7: Business strategy and models ......................................................................................................................... 3
7.1 Introduction ............................................................................................................................................................ 3
7.2 Generic competitive strategies ............................................................................................................................... 3
7.3 Interactive strategies .............................................................................................................................................. 4
7.4 Business models ...................................................................................................................................................... 5
Chapter 8: Corporate strategy and diversification ........................................................................................................... 6
8.1 Introduction ............................................................................................................................................................ 6
8.2 Strategy directions .................................................................................................................................................. 6
8.3 Diversification drivers ............................................................................................................................................. 7
8.4 Diversification and performance ............................................................................................................................ 7
8.5 Vertical integration ................................................................................................................................................. 7
8.6 Value creation and corporate parent ..................................................................................................................... 8
8.7 Portfolio matrices.................................................................................................................................................... 8
Chapter 9: International strategy ................................................................................................................................... 10
9.1 Introduction .......................................................................................................................................................... 10
9.2 Internationalisation drivers................................................................................................................................... 10
9.3 Geographic sources of advantage......................................................................................................................... 11
9.4 International strategies ......................................................................................................................................... 11
9.5 Market selection and entry ................................................................................................................................... 12
9.6 Subsidiary roles in an international portfolio ....................................................................................................... 14
9.7 Internationalisation and performance .................................................................................................................. 14
Chapter 10: Entrepreneurship and innovation ............................................................................................................... 15
10.1 Introduction ........................................................................................................................................................ 15
10.2 Entrepreneurship ................................................................................................................................................ 15
10.3 Innovation dilemmas .......................................................................................................................................... 16
10.4 Innovation diffusion ............................................................................................................................................ 17
10.5 Innovators and imitators..................................................................................................................................... 17
Chapter 11: Mergers, acquisitions and alliances ............................................................................................................ 19
11.1 Introduction ........................................................................................................................................................ 19
11.2 Organic development.......................................................................................................................................... 19
11.3 Mergers and acquisitions .................................................................................................................................... 19
11.4 Strategic alliances ............................................................................................................................................... 21
11.5 Comparing acquisitions, alliances and organic development............................................................................. 22
, Chapter 7: Business strategy and models
Business
7.1 Introduction models
- value
Strategic business unit (SBU): supplies goods or configuration
services for a distinct domain of activity. - value creation
- value capture
7.2 Generic competitive strategies
Competitive strategy: concerned with how a
company, business unit of organisation achieves
competitive advantage in its domain of activity (costs,
product & service features, branding). business
Competitive advantage: how a company, business strategy
Generic Interactive
unit or organisation creates value for its users which strategies strategies
is both greater than the costs of supplying them and - cost leadership -
superior to that of rivals. - differentation
hypercompetitive
strategy
- focus - cooperation
An competitive strategy is always vulnerable to - hybrid - game theory
competitors with better products or lower prices.
Porter’s distinction between cost, differentiation and scope →
Generic strategies.
1 2
Cost-leadership strategy: involves becoming the lowest-cost
organisation in a domain of activity. There are 4 key cost drivers:
1. Input costs (labour, raw materials)
2. Economies of scale: spreading high (fixed) costs over high
levels of output. → Economies of scale curve usually U-
shaped.
3. Experience: the cumulative experience gained by an
organisation with each unit of output leads to reductions in
unit costs.
4. Product/process design: by designing a product/service it is
important to recognise whole-life costs.
Two options for cost-leaders:
1. Parity: cost-leader charging same prices as average
competitor, turning cost advantage wholly into extra profit.
2. Proximity: closeness to competitors in terms of features.
Customers may require small cuts in prices to compensate 3a
for slightly lower quality. 3b
Differentiation strategy: involves uniqueness along some
dimension that is sufficiently valued by customers to allow a price
premium. 3 primary differentiation drivers to consider:
1. Product and service attributes: certain product attributes can provide better or unique features than
comparable products/services for the customer.
2. Customer relationships: differentiation can rely on relationship between the organisation providing
the product/service and the customer. (depending on e.g. customer services & responsiveness,
marketing & reputation)
3. Complements: differentiation can also build on linkages to other products/services.
Focus strategy: targets a narrow segment or domain of activity and tailors its products or services to the
needs of that specific segment to the exclusion of others. → Two variants: cost focus strategy &
differentiation focus strategy.
Successful focus strategies depend on at least 3 key factors: (1) distinct segment needs, (2) distinct
segment value chains and (3) viable segment economics.
cases’
ISBN: 978-1-292028245 (Eleventh edition)
CH7
CH8
CH9
CH11
CH10
,Inhoudsopgave
Chapter 7: Business strategy and models ......................................................................................................................... 3
7.1 Introduction ............................................................................................................................................................ 3
7.2 Generic competitive strategies ............................................................................................................................... 3
7.3 Interactive strategies .............................................................................................................................................. 4
7.4 Business models ...................................................................................................................................................... 5
Chapter 8: Corporate strategy and diversification ........................................................................................................... 6
8.1 Introduction ............................................................................................................................................................ 6
8.2 Strategy directions .................................................................................................................................................. 6
8.3 Diversification drivers ............................................................................................................................................. 7
8.4 Diversification and performance ............................................................................................................................ 7
8.5 Vertical integration ................................................................................................................................................. 7
8.6 Value creation and corporate parent ..................................................................................................................... 8
8.7 Portfolio matrices.................................................................................................................................................... 8
Chapter 9: International strategy ................................................................................................................................... 10
9.1 Introduction .......................................................................................................................................................... 10
9.2 Internationalisation drivers................................................................................................................................... 10
9.3 Geographic sources of advantage......................................................................................................................... 11
9.4 International strategies ......................................................................................................................................... 11
9.5 Market selection and entry ................................................................................................................................... 12
9.6 Subsidiary roles in an international portfolio ....................................................................................................... 14
9.7 Internationalisation and performance .................................................................................................................. 14
Chapter 10: Entrepreneurship and innovation ............................................................................................................... 15
10.1 Introduction ........................................................................................................................................................ 15
10.2 Entrepreneurship ................................................................................................................................................ 15
10.3 Innovation dilemmas .......................................................................................................................................... 16
10.4 Innovation diffusion ............................................................................................................................................ 17
10.5 Innovators and imitators..................................................................................................................................... 17
Chapter 11: Mergers, acquisitions and alliances ............................................................................................................ 19
11.1 Introduction ........................................................................................................................................................ 19
11.2 Organic development.......................................................................................................................................... 19
11.3 Mergers and acquisitions .................................................................................................................................... 19
11.4 Strategic alliances ............................................................................................................................................... 21
11.5 Comparing acquisitions, alliances and organic development............................................................................. 22
, Chapter 7: Business strategy and models
Business
7.1 Introduction models
- value
Strategic business unit (SBU): supplies goods or configuration
services for a distinct domain of activity. - value creation
- value capture
7.2 Generic competitive strategies
Competitive strategy: concerned with how a
company, business unit of organisation achieves
competitive advantage in its domain of activity (costs,
product & service features, branding). business
Competitive advantage: how a company, business strategy
Generic Interactive
unit or organisation creates value for its users which strategies strategies
is both greater than the costs of supplying them and - cost leadership -
superior to that of rivals. - differentation
hypercompetitive
strategy
- focus - cooperation
An competitive strategy is always vulnerable to - hybrid - game theory
competitors with better products or lower prices.
Porter’s distinction between cost, differentiation and scope →
Generic strategies.
1 2
Cost-leadership strategy: involves becoming the lowest-cost
organisation in a domain of activity. There are 4 key cost drivers:
1. Input costs (labour, raw materials)
2. Economies of scale: spreading high (fixed) costs over high
levels of output. → Economies of scale curve usually U-
shaped.
3. Experience: the cumulative experience gained by an
organisation with each unit of output leads to reductions in
unit costs.
4. Product/process design: by designing a product/service it is
important to recognise whole-life costs.
Two options for cost-leaders:
1. Parity: cost-leader charging same prices as average
competitor, turning cost advantage wholly into extra profit.
2. Proximity: closeness to competitors in terms of features.
Customers may require small cuts in prices to compensate 3a
for slightly lower quality. 3b
Differentiation strategy: involves uniqueness along some
dimension that is sufficiently valued by customers to allow a price
premium. 3 primary differentiation drivers to consider:
1. Product and service attributes: certain product attributes can provide better or unique features than
comparable products/services for the customer.
2. Customer relationships: differentiation can rely on relationship between the organisation providing
the product/service and the customer. (depending on e.g. customer services & responsiveness,
marketing & reputation)
3. Complements: differentiation can also build on linkages to other products/services.
Focus strategy: targets a narrow segment or domain of activity and tailors its products or services to the
needs of that specific segment to the exclusion of others. → Two variants: cost focus strategy &
differentiation focus strategy.
Successful focus strategies depend on at least 3 key factors: (1) distinct segment needs, (2) distinct
segment value chains and (3) viable segment economics.
