💪
BL5 Strengthening a Company’s
Competitive Position: Strategic
Moves, Timing, and Scope of
Operations
Created @June 8, 2025 11:10 AM
Class OBS 310
Files & media Block 5 Slides_v2_2025.pdf Block 5 notes.pdf
BL5 Strengthening a Company’s Competitive Position: Strategic Moves, Timing, and Scope of Operations 1
, 💡 Learning Objectives
Whether and when to pursue offensive or defensive strategic moves
to improve a company’s market position
When being a first mover or a fast follower or a late mover is most
advantageous
The strategic benefits and risks of expanding a company’s horizontal
scope through mergers and acquisitions
The advantages of extending the company’s scope of operations via
vertical integration
The conditions that favor farming out certain value chain activities to
outside parties
When and how strategic alliances can substitute for horizontal
mergers and acquisitions or vertical integration and how they can
facilitate outsourcing
STRATEGIES TO IMPROVE MARKET
POSITION
Once a company has settled on which of the five generic competitive strategies to
employ, attention turns to how strategic choices regarding competitive actions,
timing of those actions, and the scope of operations can complement its
competitive approach and maximise the power of its overall strategy.
1. Whether and when to pursue offensive or defensive
strategic moves to improve a company’s market
position.
BL5 Strengthening a Company’s Competitive Position: Strategic Moves, Timing, and Scope of Operations 2
, Offensive Strategic Moves are called for when a company spots opportunities to
gain profitable market share at its rivals’ expense or when a company has no
choice but to try to whittle away at a strong rival’s competitive advantage.
Strategic offensive principles:
focusing relentlessly on building competitive advantage and then striving to
convert it into a sustainable advantage
applying resources where rivals are least able to defend themselves
employing the element of surprise as opposed to doing what rivals expect and
are prepared for
displaying a capacity for swift and decisive actions to overwhelm rivals
Choosing the basis for competitive attack
Strategic offensives should be grounded in a company’s strategic assets and
employ a company’s strengths to attack rivals in the competitive areas where they
are weakest.
The principal offensive strategy options include the following:
offering an equally good or better product at a lower price
leapfrogging competitors by being first to market with next-generation
products
pursuing continuous product innovation to draw sales and market share away
from less innovative rivals
pursuing disruptive product innovations to create new markets
adopting and improving on the good ideas of other companies
using hit-and-run or guerrilla warfare tactics (e.g. lowballing on price,
surprising rivals with sporadic but intense bursts of promotional activity, or
undertaking special campaigns to attract the customers of rivals plagued with
BL5 Strengthening a Company’s Competitive Position: Strategic Moves, Timing, and Scope of Operations 3
BL5 Strengthening a Company’s
Competitive Position: Strategic
Moves, Timing, and Scope of
Operations
Created @June 8, 2025 11:10 AM
Class OBS 310
Files & media Block 5 Slides_v2_2025.pdf Block 5 notes.pdf
BL5 Strengthening a Company’s Competitive Position: Strategic Moves, Timing, and Scope of Operations 1
, 💡 Learning Objectives
Whether and when to pursue offensive or defensive strategic moves
to improve a company’s market position
When being a first mover or a fast follower or a late mover is most
advantageous
The strategic benefits and risks of expanding a company’s horizontal
scope through mergers and acquisitions
The advantages of extending the company’s scope of operations via
vertical integration
The conditions that favor farming out certain value chain activities to
outside parties
When and how strategic alliances can substitute for horizontal
mergers and acquisitions or vertical integration and how they can
facilitate outsourcing
STRATEGIES TO IMPROVE MARKET
POSITION
Once a company has settled on which of the five generic competitive strategies to
employ, attention turns to how strategic choices regarding competitive actions,
timing of those actions, and the scope of operations can complement its
competitive approach and maximise the power of its overall strategy.
1. Whether and when to pursue offensive or defensive
strategic moves to improve a company’s market
position.
BL5 Strengthening a Company’s Competitive Position: Strategic Moves, Timing, and Scope of Operations 2
, Offensive Strategic Moves are called for when a company spots opportunities to
gain profitable market share at its rivals’ expense or when a company has no
choice but to try to whittle away at a strong rival’s competitive advantage.
Strategic offensive principles:
focusing relentlessly on building competitive advantage and then striving to
convert it into a sustainable advantage
applying resources where rivals are least able to defend themselves
employing the element of surprise as opposed to doing what rivals expect and
are prepared for
displaying a capacity for swift and decisive actions to overwhelm rivals
Choosing the basis for competitive attack
Strategic offensives should be grounded in a company’s strategic assets and
employ a company’s strengths to attack rivals in the competitive areas where they
are weakest.
The principal offensive strategy options include the following:
offering an equally good or better product at a lower price
leapfrogging competitors by being first to market with next-generation
products
pursuing continuous product innovation to draw sales and market share away
from less innovative rivals
pursuing disruptive product innovations to create new markets
adopting and improving on the good ideas of other companies
using hit-and-run or guerrilla warfare tactics (e.g. lowballing on price,
surprising rivals with sporadic but intense bursts of promotional activity, or
undertaking special campaigns to attract the customers of rivals plagued with
BL5 Strengthening a Company’s Competitive Position: Strategic Moves, Timing, and Scope of Operations 3
