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WHY DO STRATEGY ?
A firm does strategy:
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1.1
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Follow-up
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Competitive Advantage
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Low-cost
provider
Differentiation
on features
Focus on
market niche
Best-cost
provider
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STRATEGIC APPROACHES
Building a competitive advantage by:
1. Striving to become the industrys low-cost
provider (efficiency).
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Strategic Positioning
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Strategic Positioning
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Competitive Advantage
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Competitive Advantage
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Organization
Value Chain
Customer
Value chain
Downstream value
Upstream value
Supplier
Value chain
COMPETITIVE ADVANTAGE
Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
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Value Chain
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1.2
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Realized
Strategy
$$$?
Business
Model
Competitive
Initiatives
Value
Proposition
Business
Approaches
Profit Formula
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The Strategic
Fit Test
The Competitive
Advantage Test
Winning
Strategy
The Performance
Test
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THINKING STRATEGICALLY
Googles web browser-based Chrome operating
system and its online applications suite are now
challenging Microsofts long-term dominance of
those marketplace sectors.
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