MGMT 2100 Lecture Notes - Lecture 15: Blue Ocean Strategy, Cost Leadership, Business Plan
22 May 2018
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Department
Course
Professor
I. Key ideas behind burn your business plan
a. Business plan commonly 9-10 sections
i. all parts essential but executive summary is critical
b. need to have following:
i. great oral presentation
ii. compelling written story
iii. effective web site
iv. hard hitting financial projections
v. business plans are too boring
II. Setting strategy
a. Trying to get a sustainable competitive advantage
i. Apple controls 70% of music industry. Why? Because of iTunes.
b. What you must be:
i. Valuable
ii. Rare
iii. Imperfectly Imitated
iv. Non-substitutable
III. Situational Analysis
a. Strengths
b. Distinctive competence.
i. Strengths: ore apailities: organization’s ulture, Google’s innovation.. it is
intangible/ harder to see from outside
c. Weaknesses
i. Price
ii. Compatibility of Apple products
iii.
d. Opportunities
i. Outside forces.
ii. Sustainability is growing.
e. Threats
i.
f. Strengths and weaknesses: internal to company. Distinctive competence.
i. Strengths: ore apailities: organization’s ulture, Google’s innovation.. it is
intangible/ harder to see from outside
IV. Corporate Grand Strategy
a. Growth strategy:
i. Focuses on increasing profits, revenues, market share, or number of places to
do business
b. Stability strategy:
i. Focuses on improving the way the company sells the same products or services
to the same customers
c. Retrenchment strategy
i. Focuses on turning around very poor company performance by shrinking the
size or scope of the business
V. Industry Positioning strategies
a. Cost leadership
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Setting strategy: trying to get a sustainable competitive advantage, apple controls 70% of music industry. Because of itunes: what you must be, valuable, rare, imperfectly imitated, non-substitutable. Distinctive competence: strengths: (cid:272)ore (cid:272)apa(cid:271)ilities: organization"s (cid:272)ulture, google"s innovation it is intangible/ harder to see from outside. Industry positioning strategies: cost leadership, differentiation, making it different or unique, ipad, focus strategy, specialized product for a limited or niche market, lamborghini. Firm-level strategies: strategic moves in direct competition: attacks and responds in red ocean, entrepreneurship: movement into deep blue waters, go somewhere no one else is addressing. Creating a sustainable competitive advantage (text and lecture: something no one else can copy, needs to be valuable, rare, imperfectly imitated, and non substitutable. Corporate strategies (portfolio & bcg from text sec. 119-122, grand from lecture & text sec. In reality, this isn(cid:1685)t true related diversification is the best.
