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BUSINESS POLICY & STRATEGY MODULE – 2 COMPETITIVE ADVANTAGE Dr. MARAMRAJU PADMAKAR RAO

REFERENCES: ,[object Object],[object Object],[object Object]

STRATEGIC PLANNING PROCESS MISSION & GOALS SWOT STRAT. CHOICE EXTERNAL OPP & THREATS INTERNAL STRENGTHS WEAKNESS FUNCTIONAL BUSINESS GLOBAL CORPORATE STRATEGIES CORP. PERFORM- -ANCE IMPL. IN FIRM IMPL.IN INDUSTRY FEEDBACK

EXTERNAL ENVIRONMENT ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

INDUSTRY COMPETITIVE ANALYSIS ,[object Object],[object Object],[object Object]

PORTER’S FIVE FORCES MODEL RISK OF ENTRY BY POTENTIAL COMPETITORS INTENSITY OF RIVALRY AMONG FIRMS BARGAINING POWER OF SUPPLIERS BARGAINING POWER OF BUYERS THREAT OF SUBSTITUTES

[object Object],[object Object],[object Object],[object Object],PORTER’S FIVE FORCES MODEL

PORTER’S FIVE FORCES MODEL …contd ,[object Object],[object Object],[object Object],[object Object],[object Object]

PORTER’S FIVE FORCES MODEL …contd ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],PORTER’S FIVE FORCES MODEL …contd

PORTER’S FIVE FORCES MODEL …contd ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

PORTER’S FIVE FORCES MODEL …contd ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Strategic Groups within Industry ,[object Object],[object Object],[object Object],[object Object],[object Object],PROPRIETARY GROUP MERCK PFIZER Eli Lilly GENERIC GROUP FOREST LABS CARTER ICN

IMPLICATIONS OF THE STRATEGIC GROUPS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

INDUSTRY LIFE CYCLE ANALYSIS *---Competitive Changes During Industry Evolution ,[object Object],[object Object],[object Object],[object Object],[object Object]

Industry Life Cycle Demand Time Embryonic Growth Maturity Decline Shake out

1.EMBRYONIC INDUSTRIES ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

2.GROWTH INDUSTRIES ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

3.INDUSTRY SHAKEOUT ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

4.MATURE INDUSTRIES ,[object Object],[object Object],[object Object],[object Object],[object Object]

5. DECLINING INDUSTRIES ,[object Object],[object Object],[object Object],[object Object],[object Object]

THE MACRO ENVIRONMENT* ,[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],RISK OF ENTRY BY POTENTIAL COMPETITORS INTENSITY OF RIVALRY AMONG FIRMS BARGAINING POWER OF SUPPLIERS BARGAINING POWER OF BUYERS THREAT OF SUBSTITUTES

1. ECONOMIC FORCES ,[object Object],[object Object],[object Object],[object Object]

2. TECHNOLOGICAL FORCES ,[object Object],[object Object],[object Object],[object Object],[object Object]

3. DEMOGRAPHIC FORCES: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

4. SOCIAL FORCES ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

5. POLITICAL & LEGAL FORCES ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

GLOBALIZATION OF INDUSTRY STRUCTURE ,[object Object],[object Object],[object Object],[object Object]

IMPLICATIONS OF GLOBALIZATION ,[object Object],[object Object],[object Object],[object Object]

NATIONAL COMPETITIVE ADVANTAGE* Attributes: ,[object Object],[object Object],[object Object],[object Object]

NATIONAL COMPETITIVE ADVANTAGE* NATIONAL COMPETITIVE ADVANTAGE FACTOR CONDITIONS INTENSITY OF RIVALRY LOCAL DEMAND CONDITIONS COMPETITI- VENESS OF SUP. INDUS

1. Factor Endowments : ,[object Object],[object Object]

2.Local Demand Conditions: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

3.COMPETITIVENESS OF RELATED AND SUPPORTING INDUSTRIES: ,[object Object],[object Object],[object Object]

4. INTENSITY OF RIVALRY: ,[object Object],[object Object],[object Object],[object Object]

INTERNAL ANALYSIS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

CRITICAL ISSUES IN INTERNAL ANALYSIS ,[object Object],[object Object],[object Object]

GENERIC BUILDING BLOCKS OF COMPETITIVE ADVANTAGE* ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

GENERIC BUILDING BLOCKS OF COMPETITIVE ADVANTAGE Superior Quality Comp. Adv *Low Cost . *Differentiation Superior Efficiency Superior Customer Responsive- -ness Superior Innovation

1.EFFICIENCY: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

2. QUALITY & RELIABILITY : ,[object Object],[object Object],[object Object],[object Object]

3. INNOVATION : ,[object Object],[object Object],[object Object],[object Object]

4. RESPONSIVENESS TO CUSTOMERS : ,[object Object],[object Object],[object Object],[object Object],[object Object]

DISTINCTIVE COMPETENCIES ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

STRATEGY, RESOURCES, CAPABILITIES AND COMPETENCIES RESOURCES DISTINCTIVE COMPETEN- -CIES CAPABILITIES STRATEGIES COMPETITIVE ADVANTAGE SUPERIOR PROFITA- -BILITY

RESOURCES: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

CAPABILITIES: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

COMPETITIVE ADVANTAGE AND VALUE CREATION ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

VALUE CREATION: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],V-P P-C C

ROOTS OF COMPETITIVE ADVANTAGE RESOURCES DISTINCTIVE COMPETEN- -CIES CAPABILITIES SUPERIOR FACTORS VALUE CREATION SUPERIOR PROFITA- -BILITY DIFFEREN- CIATION LOW COST

THE DURABILITY OF COMPETITIVE ADVANTAGE* ,[object Object],[object Object],[object Object]

BARRIERS TO IMITATION: ARE FACTORS THAT MAKE IT DIFFICULT FOR A COMPETITOR TO COPY A COMPANY’S DISTINCTIVE COMPETENCIES ,[object Object],[object Object],[object Object],[object Object],[object Object]

CAPABILITY OF COMPETITORS : ,[object Object],[object Object],[object Object],[object Object],[object Object]

INDUSTRY DYNAMISM: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

AVOIDING FAILURE & SUSTAINING COMPETITIVE ADVANTAGE ,[object Object],[object Object],[object Object],[object Object]

Rising and Falling Companies ,[object Object],[object Object],[object Object],[object Object]

STEPS TO AVOID FAILURE ,[object Object],[object Object],[object Object],[object Object]

Assignment on Module -2 --To be submitted by 17 th Jan 2011 ,[object Object]

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