STRATEGIC MANAGEMENT 14 FULL REVISION
NOTES WITH GLOBAL COMPETITION AND
INDUSTRY ANALYSIS CONCEPTS
◉ The Strategic Management Process.
Answer: *the full set of commitments, decisions, and actions
required for a firm to achieve strategic competitiveness and earn
above-average returns*
The process involves
1) *analysis*: external and internal organization to determine its
resources, capabilities, ad core competencies- on which its strategy
likely will be based
-with the info from external and internal, the firm develops its vision
and mission and formulates one or more strategies
2) *strategy*: entails strategy formulation and strategy
implementation
3) *performance*: to implement, the firm takes actions to enact each
strategy with intent of achieving strategic competitiveness and
above avg returns
,◉ The competitive landscape.
Answer: *current characteristics:*
-conventional sources of competitive advantage such as economies
of scale and huge advertising budgets are not as effective as hey once
were in terms of helping firms earn above-average returns
-traditional managerial mind-set is unlikely to lead a firm to
strategic competitiveness. Managers must adopt a new mind set that
values *flexibility, speed, innovation, integration, and the challenges
that evolve from constantly changing conditions*
◉ hypercompetition.
Answer: *term used to capture the realities of the competitive
landscape*
under these conditions, assumptions of market stability are replaced
by notions of inherent instability and change
-results from the dynamics of strategic maneuvering among global
and innovative combatants
- it is a condition of rapidly escalating competition based on price-
quality, positioning, competition to create new know-how and
establish first-mover advantage and competition to protect or
invade established product or geographic markets
, -in hypercompetitive market, firms often aggressively challenge
their competitors in the hopes of improving their competitive
position and ultimately their performance
◉ two primary drivers of hypercompetitive environments and the
nature of today's competitive advantage.
Answer: 1) the emergence of a global economy
2) technology, specifically rapid technological changes
◉ the global economy.
Answer: *one in which goods, services, people, skills, and ideas,
move freely across geographic borders*
relatively unfettered by artificial constraints, such as tariffs, the
global economy significantly expands and complicates a firms
competitive advantage
*Example:*
The European Union (EU), has become one of the worlds largest
markets, with 700 million customers. Today, China is an extremely
competitive market in which local market seeking MNCs
(multinational corporations) must fiercely compete against other
NOTES WITH GLOBAL COMPETITION AND
INDUSTRY ANALYSIS CONCEPTS
◉ The Strategic Management Process.
Answer: *the full set of commitments, decisions, and actions
required for a firm to achieve strategic competitiveness and earn
above-average returns*
The process involves
1) *analysis*: external and internal organization to determine its
resources, capabilities, ad core competencies- on which its strategy
likely will be based
-with the info from external and internal, the firm develops its vision
and mission and formulates one or more strategies
2) *strategy*: entails strategy formulation and strategy
implementation
3) *performance*: to implement, the firm takes actions to enact each
strategy with intent of achieving strategic competitiveness and
above avg returns
,◉ The competitive landscape.
Answer: *current characteristics:*
-conventional sources of competitive advantage such as economies
of scale and huge advertising budgets are not as effective as hey once
were in terms of helping firms earn above-average returns
-traditional managerial mind-set is unlikely to lead a firm to
strategic competitiveness. Managers must adopt a new mind set that
values *flexibility, speed, innovation, integration, and the challenges
that evolve from constantly changing conditions*
◉ hypercompetition.
Answer: *term used to capture the realities of the competitive
landscape*
under these conditions, assumptions of market stability are replaced
by notions of inherent instability and change
-results from the dynamics of strategic maneuvering among global
and innovative combatants
- it is a condition of rapidly escalating competition based on price-
quality, positioning, competition to create new know-how and
establish first-mover advantage and competition to protect or
invade established product or geographic markets
, -in hypercompetitive market, firms often aggressively challenge
their competitors in the hopes of improving their competitive
position and ultimately their performance
◉ two primary drivers of hypercompetitive environments and the
nature of today's competitive advantage.
Answer: 1) the emergence of a global economy
2) technology, specifically rapid technological changes
◉ the global economy.
Answer: *one in which goods, services, people, skills, and ideas,
move freely across geographic borders*
relatively unfettered by artificial constraints, such as tariffs, the
global economy significantly expands and complicates a firms
competitive advantage
*Example:*
The European Union (EU), has become one of the worlds largest
markets, with 700 million customers. Today, China is an extremely
competitive market in which local market seeking MNCs
(multinational corporations) must fiercely compete against other
