A Matrix of Various Situations December 17, 2001

1、a matrix of various situations december 17, 2001 sebastian bednarowski keiko nakazawa strategies associated with each situation actions or activities associated with each strategy competencies required to implement each strategy structural drivers and resourcesexecutional drivers and resources strat

2、egies for varying environments (rate and direction of change) (page 250-263) -be an industry leader in the early stage. -take risks-willingness to pioneer and to take risks plant/equip ment - produce attractive, innovative, profitable, high quality products - easily to change around (convertible) -

3、cell base production line - efficient capacity to meet customers demand internal business process - hire open-minded, team oriented employees with high risk tolerance - retain key employees. -grant options to employees to motivate them. -encourage employees to innovate new processes and fulfill new

4、ideas by creating corporate open management style. -create broad or focused differentiation strategies. -superior ability to create executes strategies. -institute feel for what buyers will like -opportunistic strategy making -large capital to invest in resources, capabilities, and market recognitio

5、n learning curve linkage - a firms position determines how costly a strategy will be relative to competitors. - share manufacturing and operation processes with sister units. internal business process strategic choice - create flexible and learning organization. - a firms policy choice of new modes.

6、 push to perfect the technology -innovate product quality and develop additional attractive performance feature. -high skill and knowledge of technology required -idea to develop attractive feature linkage- share idea and knowledge with suppliers and distributors to develop attractive feature. emerg

7、ing1 adopt quickly to dominant emerging technology -try to monitor new emerging technologies. (do not bet too heavily on your own technological approach.) -ability to gain the newest technology and to employ it to value chain activities. internal business process - invest on marketing research and r

8、 set the pace -influence the rules of the game -force rivals to follow -seek to set industry standards. - ability to act more quickly than rivals - large capital required to invest in resources, capacities, and market recognition - high skill and knowledge in technology - patent, copyright facility

9、technology requirement - locate its facilities based on economies of scale for available resource and market to set up standard faster than rivals - process quality - high capacity utilization pruning marginal products and models - maintain many product versions at the manufacturing level to increas

10、e inventory-stocking costs for distributors and retailers. - ability to achieve design, parts, inventory, and production economies. plant design - simplify the manufacturing process or employ cell-based manufacturing process to reduce production time - producing various models with sharing the manuf

11、acturing process - employee production design and layout based on efficient manufacturing process. alliance- make agreements with suppliers on price and shipping term. - concentrate on buying power to secure high volume purchasing. maturing -industry that is moving from rapid growth to significantly

12、 slower growth. -when nearly all potential buyers are already users of the industrys products. -market demand consists mainly of replacement sales to existing users -with growth hinging on the industrys ability to attract new buyers and convince existing buyers to up their usage. -typical growth rat

13、e is - prune marginal products from the line. - ability to select right products to prune based on margins and firms competitive advantages. learning curve effect - select the lowest margin or obsolete items. - keep up being on the edge of the trend. marketing- research customer needs, wants, prefer

14、ence, and trend. under 5% (roughly equal to the growth of the customer base or economy as a whole) strategic pitfalls in maturing industies - permit more concentration on items whose margins are highest and/or where a firm has a competitive advantage. - ability to choose right products to concentrat

15、e on. - capital capability to invest on improvement of manufacturing layout for the concentrating items. learning curve effect - improve production layouts efficiently. - create new product features. - find further uses for the product. - sustain buyer excitement. more emphasis on value chain innova

16、tion - lower costs - better product or service quality - greater capability to turn out multiple or customize product version - shorter design-to-market cycles - ability to define a firms value chains, to assign operating cost and assets to value activities.2 technology- manufacturing system mechani

17、zes high-cost- activities. - redesign production lines to improve labor efficiency. - build flexibility into the assembly processes so that customized product versions can be easily produced. - increase use of advanced technology. alliances- collaborate on the use of internet technology and e-commer

18、ce techniques with suppliers and distributors to streamline value chain activities and implement cost-saving innovations. a stronger focus on cost reduction - push suppliers for better prices. - strong market position. - ability to negotiate with suppliers. scale economies - purchase large volume of

19、 inventories at discount prices. linkage- secure long term relationship with suppliers. - implement tighter supply chain management practices. - ability to communicate with suppliers. location- locate close to suppliers to shorten the shipping time. linkage- make agreements with suppliers on shippin

20、g time. - cut low-value activities out of the value chain. - ability to define a firms value chains, to assign operating cost activities. learning curve - find firms value activities in production, design, inventory, r pangarkar, nitin, 2000) (1) cost leadership use the same competitive strategy app

21、roach in all country markets ability to coordinate strategic actions globally to achieve consistency worldwide internal business processes develop global organizational structure to unify the operations in each country. get components at competitive prices ability to develop network of attractive su

22、ppliers from all over the world working with buyers and suppliers on costs negotiate with you suppliers discounts search for new suppliers in developing countries locate plants to achieve competitive advantages ability to achieve competitive advantages economies of scalelocate plants to maximize eco

23、nomies of scale and on the basis of labor cost, proximity to the market, shipping costs. internal business processmonitor the emergin countries to establish production (2) global segmentation; n/an/an/an/an/an/a 3) protected markets; and n/an/an/an/an/an/a 4) national responsivenes s n/an/an/an/an/a

24、n/a structural drivers and resourcesexecutional drivers and resourcesstrategies associated with each situation actions or activities associated with each strategy competencies required to implement each strategy name of the driver (as it appears in the textbook) details, justification of choice and

25、examples name of the driver (as it appears in the textbook) details, justification of choice and examples industry position leader stay on- the-offensive strategy apply many technological improvement s ability to develop new efficiencies in your value chain learning and experience effects improve la

26、youts. study your manufacturing process to enhance efficiency. modify production equipment if needed produce more innovative products creative r improve customer service skills in working with customers internal business processes train people to provide the best customer service possible. communica

27、te importance of customers satisfaction. evaluate customers service by numerous surveys cut costs in pursuit of low cost leadership position ability to achieve cost advantages linkages with other activities in value chain; improve linkages with suppliers. this can lower costs and improve quality. wo

28、rk on inventory management to lower the cost of storage raw material or components and lower overall cost create new families of products to expand demand expertis e in research and developmen t internal business processes support new projects on research and development. create cross-functional tea

29、ms to work on specific project. create open book management style fortify and defend strategy attempt to raise the competitive ante for challengers and new entrants via increased spending for advertising, higher level of customer service skills and expertise in marketing that are supported with stro

30、ng financial position capital intensityhigh capital required. marketing camping may be costly internal business processes coordinate and supervise marketing functions. lead change of sales and marketing approaches if necessary introduce more product versions or brands to match the product attributes

31、 that challenge brands have ability to quickly respond and adjust production lines learning experience curve effects plant with shorter production runs but more models internal business processes create corporate open management style; encourage empowerment, higher consultants with proven record of

32、success in emerging industries practice; hire people that posses flexible thinking abilities that can quickly switch gears and approaches to new arising problems fill vacant niches that competition could slip into capabilitie s to quickly caputure neglected niches internal business processes hire ma

33、rketing consultant. research market to determine which segments are underserved. launch products and services to serve these markets add personalized services to boost customers loyalty ability to create innovative customer services muscle- flexing strategy quickly matching and possibly exceeding ch

34、allengers price cuts ability to achieve cost advantages along different functions in value chain linkagesimprove connections of activities in your value chain. better linkages will create opportunity to lower the total cost of the linked activities. they provide a potentially powerful source of cost

35、 advantage. use large promotional campaigns to counter challengers moves expertis e in product display, advertising, etc. capital requirmentshigh reserves of extra funding required for lauchnig lengthy advertising campaign and lowering your prices make it harder or more costly to switch to other bra

36、nd;offer better deals to major customers of your competitors ability to capture customers preferences internal business processcreate project oriented teams to develop combined products and services. administer more meetings between your employees and employees of your partners industry position run

37、ner-up “leaders and challengers have different views about what an opportunity is and the best course of strategic action to seize it. these differences in viewpoints or knowledge allow a challenger to take action without immediate reaction. exploit the opportunity.”( smith, ken g.; ferrier, walter

38、j.; grimm, curtis m., 2001) offensive strategy to build market share pioneer a leapfrog technological breakthrough capability of creativeness, innovation and avoiding imitation of market leaders internal business processespioneer a unique product that increases buyer value recruit new people, create

39、 new self-managed departments to handle new projects build a reputation for product leadership capability to gain customers recognition linkages with supplierbetter connections between suppliers and your company can increase design-to- market times. for example knowing your suppliers coming products

40、, you will be able to plan and design your products much quicker. consequently you will be able to deliver new products to the market faster. internal business processeslead organizational change towards flatter structure to create faster ideas flow and increase the speed of information flow and pro

41、duct development forge attractive alliances internal business processesmonitor change. establish contacts with producers of the third generation products. peruse aggressive cost reductions linkages economies of scale improve linkages. for example, edi linkages can reduce cost. expose your business m

42、odel to the scale that maximizes you profits. internal business processesmonitor and reavaluate value chain. determine marginal activities. improve your activities. develop attractive differentiation strategies capability to develop uniqueness of your products internal business processesstress on im

43、provement of the activities in the value chain to enhance buyer value. deploy new types of sales people; educate your buyers aout value of your products growth- via- acquisition strategy merge with or acquire rivals to develop skills to assimilate the operation of aquired companies internal business

44、 pocessesanalyze value chain of acquired companies to eliminte duplication and overlap. lead towards narrowing organizational cul ture between your company and the company you acquired vacant- niche strategy concentr ate on customers that has been neglected by market leaders develo p skill and resou

45、rces suited to existing niche human resourcesmarketing specialists to monitor the market internal business processes create a team to examine a niche profitability specialis t strategy develop technology superior to rivals develop product family that buyer have special needs for capability to consis

46、tently beat rivals out in pioneering technological advances internal business processes manage toward clear leadership in a particular technological area stress on flat organization structure to faster achieve superior technological depth and technical superiority o superior product strategy produce

47、 high quality products linkages with suppliersconnections ensuring a stream of flaweless raw material to your company internal business processdevelop systems to measure product quality. set goal for high quality. monitor production processes. distinctive image strategy develop unique products attri

48、butes human resource marketing creative engineers marketing research specialist internal business processescreate cross functional teams establish close contacts with customers internal business processes lead towards increasing switching cost of your customers. offer and sell customized services an

49、d products. distincti ve image strategy reputati on for charging the lowest prices human resources economies of scale marketing personnel communicating the gratest prices exploit economies of scale to achieve higher efficiencies and lower cost internal business processes allocate funds for marketing

50、 campaign content follower strategy restrain from aggressive strategies ability to copy brand names at lower prices economies of scaleincrease your economies by targeting more markets internal business processesmonitor market pioneers. watch trends and try to follow avoiding high costs of advertisin

51、g. provide excellent quality at a good price capability to develop under priced products learning curve effectsimrove plant layout to increase efficiencies and reduce assembly times internal business processes monitor value chain. trim the less efficient activities. set up quality measurement system

52、s lead towards excellent customers service devise creative advertising develop focus and differentiation strategies industry position laggard sell off assets sell plant equipment strategy revision shift to a new competitive approaches quickly develop new competitiv e capabilities internal business p

53、rocesseslead organizational change overha ul internal operations in functional areas to better support the same overall business strategy veritical integration the cost of key input outsource marginal activities manufacturing: lower cost of your input materials may be lowered by avoidance of union l

54、abor, increasing bargaining power of locating your plants in different places internal business processesmanagement: meet with directors of different department to analyze your value chain and compare it to leaders. discuss functional strategies lead towards change by administering by setting measur

55、able, specific and timebounded objectives merge with another firm in the industry develop skills to assimilate the operation of aquired companies internal business pocessesanalyze value chain of acquired companies to eliminte duplication and overlap. lead towards narrowing organizational cul ture be

56、tween your company and the company you acquired retrench into a core of products n/an/an/an/an/a boosting revenues cut prices ability to have or develop competitiv e capabilities in functional areas learning curve effects the percentage of capacity utilization employ different plant layout to increa

57、se efficiencies in your production process maximize capacity utilization increase promotion creative, innovative advertising internal business processhire marketing consultants add customer services custome r service that adds value internal business processhire right people cutting costs pare admin

58、istrative overhead internal business processes perform independent audit of your administrative to examine your administrative expenses eliminat e low-value added activities in the value chain vertical integration or outsourcing outsource marginal activities to lower the cost moderni ze of existing

59、plant and equipment learning curve effectsnew/modernized plant and better layout will significantly improve you productivity and lower you cost delay of nonessential capital expenditures manager ial abilities to identify inefficienci es and marginal products in your value chain internal business pro

60、cessanalyze you investment projects. choose those that result in the highest irr or npv and you have capabilities to pursue them. restruct ure debt ability to persuade your creditors that you will generate money in the future internal business processes organize finance team to prepare projections o