, COMPETITIVE STRATEGY
Prof: Elvira Haezendonck
2017-2018
1
,INTRODUCTION
STRATEGY
= a plan of action designed to achieve a particular goal.
Ex) profit maximizing, budget maximizing, … the plan to get there is called strategy
Principal long term objectives 2-5 years
Policy and plan, allocation of resources Allocate resources to project/ business themes
Definition of market/segment You need to exactly know it what market you are active with your BU
Definition of nature business/firm Nature: Some businesses are true competitors and some work
more together
Cope with changing environment dynamic, you need to change your strategy when the
environment has changed and need to be able to anticipate on future expectations
Ex) expansion of container capacity in the port of Antwerp: the major dominant force are the shipping
companies (shipping companies have aligned into 3 companies = 70% of all container business
worldwide = oligoplie) Port want several new terminals so every big shipping company can expand
as well = anticipation
Shape the firm’s ‘competitive persona’ human resources working for their company colruyt is
responsible for their own human capital : try to differ from others by keeping in mind their image
COMPETITION
Competition is also good for the company because they will be triggered to perform better.
• Shift from negative to positive impact
Positive sum competition = let’s make the pie bigger in the end your part will be bigger because the
whole pie is bigger
• Implicit ‘fight’ for profit, market share ,growth, customers, talents (HR), etc.
HR: Getting the best talents to your company is newly important ( not only look at the output side but also
the input)
• Most often subtile, sometimes real war
• Competition versus (and) Co-operation
Collaboration between companies
ex) security matters, attracting talents to their industry and not company only = function as colleagues
COMPETITIVE STRATEGY
Apply set of business principles to build strategic management (= foundation for good strategic decisions);
But their is more: linkages/assumptions/limited information are business reality;
Building on micro-economics, industrial economics, general and strategic management, and organisation
theory.
In-depth analysis for business decision (assignments: case solving)
2
, • What are the hypotheses?
• Who are the players?
• What is the goal?
• Which choices are to be made?
• What is the relation “choices” and “result”?
THEORETIOCAL CONCEPTS AND 3 ASSIGNMENTS ARE BUILT AROUND 3 “BIG ISSUES”
• Boundaries of the firm: WHERE?
• Horizontal: size of the company (producing how much?)
• Vertical: what will we produce? Ourselves (“make or buy”)?
• Corporate (company as a whole): on which market(s) do we want to
be?
Ex) Dinseyland: tourism, entertainment = more markets
Ex2) Cola: refreshing, alternative for coffee, alternative for alcohol,… they are now competing with orange
juice so they changed their strategy ( originally orange juice was not competitive with coca cola)
• Competition: WHO and HOW?
understand how we can interact with regard to the number and kind of competitors
• Type of market business is operating in: WHO?
• E.g. airplane industry versus consumer products (e.g. Boeing versus
unilever)
• Kind of interaction of rivals: HOW?
• Leader, follower, oligopolist, etc.
• Positioning and dynamics: WHY?
why are they the leader and we the follower? Or the other way around
• Where do we want to be? low cost, differentiation, …
• Which competitive advent
3
Prof: Elvira Haezendonck
2017-2018
1
,INTRODUCTION
STRATEGY
= a plan of action designed to achieve a particular goal.
Ex) profit maximizing, budget maximizing, … the plan to get there is called strategy
Principal long term objectives 2-5 years
Policy and plan, allocation of resources Allocate resources to project/ business themes
Definition of market/segment You need to exactly know it what market you are active with your BU
Definition of nature business/firm Nature: Some businesses are true competitors and some work
more together
Cope with changing environment dynamic, you need to change your strategy when the
environment has changed and need to be able to anticipate on future expectations
Ex) expansion of container capacity in the port of Antwerp: the major dominant force are the shipping
companies (shipping companies have aligned into 3 companies = 70% of all container business
worldwide = oligoplie) Port want several new terminals so every big shipping company can expand
as well = anticipation
Shape the firm’s ‘competitive persona’ human resources working for their company colruyt is
responsible for their own human capital : try to differ from others by keeping in mind their image
COMPETITION
Competition is also good for the company because they will be triggered to perform better.
• Shift from negative to positive impact
Positive sum competition = let’s make the pie bigger in the end your part will be bigger because the
whole pie is bigger
• Implicit ‘fight’ for profit, market share ,growth, customers, talents (HR), etc.
HR: Getting the best talents to your company is newly important ( not only look at the output side but also
the input)
• Most often subtile, sometimes real war
• Competition versus (and) Co-operation
Collaboration between companies
ex) security matters, attracting talents to their industry and not company only = function as colleagues
COMPETITIVE STRATEGY
Apply set of business principles to build strategic management (= foundation for good strategic decisions);
But their is more: linkages/assumptions/limited information are business reality;
Building on micro-economics, industrial economics, general and strategic management, and organisation
theory.
In-depth analysis for business decision (assignments: case solving)
2
, • What are the hypotheses?
• Who are the players?
• What is the goal?
• Which choices are to be made?
• What is the relation “choices” and “result”?
THEORETIOCAL CONCEPTS AND 3 ASSIGNMENTS ARE BUILT AROUND 3 “BIG ISSUES”
• Boundaries of the firm: WHERE?
• Horizontal: size of the company (producing how much?)
• Vertical: what will we produce? Ourselves (“make or buy”)?
• Corporate (company as a whole): on which market(s) do we want to
be?
Ex) Dinseyland: tourism, entertainment = more markets
Ex2) Cola: refreshing, alternative for coffee, alternative for alcohol,… they are now competing with orange
juice so they changed their strategy ( originally orange juice was not competitive with coca cola)
• Competition: WHO and HOW?
understand how we can interact with regard to the number and kind of competitors
• Type of market business is operating in: WHO?
• E.g. airplane industry versus consumer products (e.g. Boeing versus
unilever)
• Kind of interaction of rivals: HOW?
• Leader, follower, oligopolist, etc.
• Positioning and dynamics: WHY?
why are they the leader and we the follower? Or the other way around
• Where do we want to be? low cost, differentiation, …
• Which competitive advent
3
