Management
MGMT 4890-01 Business Policy and Strategy Week 4
Introduction to Strategy Formulation Business Level Strategy
What are we going to do about these 5 forces?
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3 Generic Strategies
Three generic strategies to overcome the five forces and achieve competitive advantage
Overall cost leadership is based on:
Creating a low-cost position relative to a firm’s peers
Managing relationships throughout the entire value chain
Differentiation implies:
Products and/or services that are unique & valued
Emphasis on nonprice attributes so customers will gladly pay a premium
A focus strategy requires:
Narrow product lines, buyer segments, or targeted geographic markets
Advantages obtained either through differentiation or cost leadership
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Examples of Strategies
Companies pursuing an overall cost leadership strategy:
McDonalds
Walmart
Companies pursuing a differentiation strategy:
Apple
Companies pursuing a focus strategy:
Ikea
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Soft Drink - 5 Forces Analysis
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Soft Drink - 5 Forces Analysis
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Soft Drink - 5 Forces Analysis
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Soft Drink - 5 Forces Analysis
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Soft Drink - 5 Forces Analysis
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