TOUR3007 Lecture Notes - Lecture 3: Cost Leadership, Strategic Choice, Horizontal Integration
Document Summary
Week 3- strategic choice- lecture notes (readings notes in blue) Corporate strategy- how to compete? (competitive strategy) Business-level strategy- which direction and methods to take? (strategic directions. Functional strategy- how can we implement these? (day to day operations) Strategies that detail actions to gain a competitive advantage. What businesses the organisation is in and how it should manage itself. Porter"s ge(cid:374)eri(cid:272) strateg(cid:455)- how organisation can achieve competitive advantage. Cost leadership (becoming lowest provider in an industry. Focus (strategy tailored toward particular market segment) Price-based strategies: reducing costs and prices, similar to cost leadership but emphasises the fact that low costs need to be passed onto the customer in the form of low prices. Differentiation-based strategies: emphasis on providing extra qualities which are values by the consumer, value added may be provided by: design, exploitation of value chain, advertising. Hybrid strategy: providing high quality products and services at low prices, reducing average costs.
