GMS 200 Lecture 7: Lecture 7 GMS Notes

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Emad Samwel

Document Summary

From the 1st lecture, we established that many firms are involved in a fierce competition on a worldwide scale. However: we need to say more about how they are actually competing; specifically, we need to address the following question: Firms basically compete against their rivals by either: Offering the same products at below average prices (i. e. cost leadership strategy) Or offeri(cid:374)g differe(cid:374)t produ(cid:272)ts (cid:894)(cid:271)ased o(cid:374) (cid:272)o(cid:374)su(cid:373)ers" per(cid:272)eptio(cid:374)(cid:895) at a(cid:271)o(cid:448)e-average prices (i. e. product-different strategy). There are several important concepts (i. e. core competencies, competitive advantage) and analytical fra(cid:373)e(cid:449)orks (cid:894)i. e. porter"s model of 5 strategi(cid:272) for(cid:272)es; swot a(cid:374)alysis(cid:895) that (cid:373)ay improve our understanding of how firms compete. By way of illustration, we focus on: canadian auto industry toyota canada inc. New entrants: (new firms entering the industry): low risk of new entrants. Suppliers: (bargaining of power of suppliers): auto parts suppliers are likely to have a low bargaining power relative to leading auto manufactures.