戰(zhàn)略管理英文版版教學課件第6章

1、Business Strategy: Differentiation, Cost Leadership, and IntegrationPart 2 Strategy Formulation6-2LO 6-1 Define business-level strategy and describe how it determines a firms strategic position.LO 6-2 Examine the relationship between value drivers and differentiation strategy.LO 6-3Examine the relat

2、ionship between cost drivers and cost-leadership strategy.LO 6-4Assess the benefits and risks of cost-leadership and differentiation business strategies vis-vis the five forces that shape competition.LO 6-5Explain why it is difficult to succeed at an integration strategy.LO 6-6Evaluate value and cos

3、t drivers that may allow a firm to pursue an integration strategy.LO 6-7Describe and evaluate the dynamics of competitive positioning.6-3ChapterCase 6 Trimming Fat at Whole Foods MarketWhole FoodsBusiness Strategy RevitalizationStarted as small natural-foods store 1980Became market leader; different

4、iation through organics and quality Competitive advantage through 2008CEO John Mackey: Refocused Mission, Reduced Costs 6-4 Trimming Fat at Whole Foods MarketWhole Foods: Increasing the Value GapWhat are the key issues in the opening case?New Strategic Intent: Become the champion of healthy livingNe

5、w differentiation appeal“Trim the Fat”Expansion of private-label products/volume discountsLow-cost suppliers/enhanced logistics systemChapterCase 6 6-5Business-Level Strategy: How to Compete for Advantage?Answer the “Who, What, Why, and How” Who - which customer segments to serve?What needs, wishes,

6、 desires will we satisfy?Why do we want to satisfy them?How will we satisfy customers needs?Details actions managers take in quest for competitive advantageSingle product or group of similar products6-6EXHIBIT 6.1 Industry and Firm Effects Jointly Determine Competitive Advantage6-7Strategic Position

7、Determined by Firms Business-Level StrategyTwo primary competitive levers:Value (V)Cost (C)Economic Value Created: (V-C)The greater (V-C) = Competitive AdvantageStrategic Position Based on:Value creation Cost6-8Strategic Trade-offsCost or Value Position?Higher Value = Higher CostsValue Creation Cost

8、s = Value GapA business strategy is more likely to lead to competitive advantage if either:Perform Similar Activities DifferentlyORPerform Different ActivitiesThan Rivals6-9Generic Business StrategiesDifferent generic strategies can lead to competitive advantage in the same industry.DifferentiationH

9、igher Value; Unique FeaturesRolex Cost-LeadershipSimilar Value; Lower CostTimexScope of CompetitionNarrow (Focused)RolexBroadTimex6-10EXHIBIT 6.2Strategic Position and Competitive Scope: Generic Business Strategies6-11Small Group Exercise Generic Business-Level StrategiesAnn TaylorMcKinsey & CoBicNi

10、keBig LotsPatek PhilippeBlack & DeckerPorscheClif BarRhapsodyCoca-ColaRolls-RoyceDollar StoresRyanairGoogleSamuel AdamsGoya Foods Singapore AirlinesGreyhound LinesTargetKia MotorsToyotaLands EndVanguardLiberty MutualVictorias SecretLouis VuittonWellPointMartin GuitarsZaraPlace each firm you know in

11、one of the four categories of generic business strategies1) broad cost-leadership 2) focused cost-leadership 3) broad differentiation4) focused differentiation Explain your choices.What are some common features for firms you have placed within each category? 6-12LO 6-1 Define business-level strategy

12、 and describe how it determines a firms strategic position.LO 6-2 Examine the relationship between value drivers and differentiation strategy.LO 6-3Examine the relationship between cost drivers and cost-leadership strategy.LO 6-4Assess the benefits and risks of cost-leadership and differentiation bu

13、siness strategies vis-vis the five forces that shape competition.LO 6-5Explain why it is difficult to succeed at an integration strategy.LO 6-6Evaluate value and cost drivers that may allow a firm to pursue an integration strategy.LO 6-7Describe and evaluate the dynamics of competitive positioning.6

14、-13Value DriversProduct FeaturesMost important & clearest driversUnique product features higher priceBMW M3Customer ServiceID unmet customer needs & satisfy themZappos online retailerToyota Lexus brandCustomizationTailoring for specific customers“Mass customization”Threadless T-shirtsComplementsAdd

15、value when consumed in tandemDVR (i.e., Tivo)6-14EXHIBIT 6.3Value Drivers: DifferentiationDifferentiation:Product features, customer service, customization, and complementsCompetitive advantage = economic value created (V-C) competitorsMarriott line of Hotels 6-15116STRATEGY HIGHLIGHT 6.1Toyota: Fro

16、m “Perfect Recall” to “Recall Nightmare”Toyotas strategic challenges.Launched Lexus 1989Luxury car segment dominated by Mercedes-Benz, BMW, CadillacLS400 line required recall a little over a year after launchTurned threat into opportunity to establish reputation for superior customer serviceTwo year

17、s after launch Lexus ranked first on quality and customer satisfaction by J.D. Powers2010 Toyota has largest recall in automotive historyNeeded to exhibit superior customer responsiveness again8 million vehicles recalled was much more challenging6-16EXHIBIT 6.4Cost Drivers: Cost-LeadershipCost Leade

18、rship:Cost of input factors, economies of scale, and learning-curve and experience-curve effectsCompetitive advantage = economic value created (V-C) competitorsWalmart vs. KmartDell vs. Compaq, Gateway, & HP6-17118STRATEGY HIGHLIGHT 6.2Ryanair: Lower Cost than the Low-Cost Leader!The “Southwest Airl

19、ines of Europe”“Lowest-cost airline in the world”No window shades on older planes, seats dont recline, etc.Fares as low as $8Numerous fees and surcharges: pillows, blankets, check-in, etc.20+% of revenues flow from ancillary services6-18Ryanair Sample Revenue Calculation 6-19Small Group Exercise Rya

20、nairHow to make profits on an $8 ticket? Are extra fees properly disclosed ?Check out Are the fees transparent? If you were a competitor (e.g., Aer Lingus or Lufthansa)How would you compete against Ryanair?Cost parity is unlikely6-20Cost Drivers: Inputs & ScaleInput FactorsLower-cost materials, mone

21、y or labor. De Beers diamondsAlcoa bauxiteGE CapitalEconomies of ScaleIncreased output decreased cost per unitSpread fixed costsCube-square ruleBoeing Aircraft Carrefour retailer6-21Economies and Diseconomies of ScaleEconomies of Scale output up, cost per unit downMicrosoft upfront R&D for Windows 7

22、Very low marginal costs to make copies of the operating systemSpecialized SystemsERP software or robotsPhysical PropertiesCube-square rule for big box storesMinimum Efficient Scale (MES)Lowest cost position constant returns to scaleDiseconomies of ScaleComplexity of management or physical limitsW. L

23、. Gore and aircraft aeronautics6-22EXHIBIT 6.5Economies of Scale and Diseconomies of Scale6-23Big Box Retailers Advantage Cube-Square Rule: Each dimension increases 50% (2 goes to 3) BUTEach volume increases 237.5% (8 goes to 27) ! 6-24Cost Drivers: Learning & Experience CurvesLearning Curves“Learn

24、by doing”Steeper curve more learningAircraft manufacturingCardiac surgeonsExperience CurvesCombine economy of scale & learning curvesScale comes down a given learning curveTechnology allows movement to steeper curveCombination can leapfrog in competitive advantageWalmart high volumes & technology le

25、adership6-25The Learning Curve6-26EXHIBIT 6.6Gaining Competitive Advantage Through Learning and Experience Curves6-27LO 6-1 Define business-level strategy and describe how it determines a firms strategic position.LO 6-2 Examine the relationship between value drivers and differentiation strategy.LO 6

26、-3Examine the relationship between cost drivers and cost-leadership strategy.LO 6-4Assess the benefits and risks of cost-leadership and differentiation business strategies vis-vis the five forces that shape competition.LO 6-5Explain why it is difficult to succeed at an integration strategy.LO 6-6Eva

27、luate value and cost drivers that may allow a firm to pursue an integration strategy.LO 6-7Describe and evaluate the dynamics of competitive positioning.6-28EXHIBIT 6.7Competitive Positioning and the Five Forces6-29LO 6-1 Define business-level strategy and describe how it determines a firms strategi

28、c position.LO 6-2 Examine the relationship between value drivers and differentiation strategy.LO 6-3Examine the relationship between cost drivers and cost-leadership strategy.LO 6-4Assess the benefits and risks of cost-leadership and differentiation business strategies vis-vis the five forces that s

29、hape competition.LO 6-5Explain why it is difficult to succeed at an integration strategy.LO 6-6Evaluate value and cost drivers that may allow a firm to pursue an integration strategy.LO 6-7Describe and evaluate the dynamics of competitive positioning.6-30INTEGRATION STRATEGY: COST LEADERSHIP AND DIF

30、FERENTIATIONTrade-offs between low cost & differentiationValue & Cost Drivers of IntegrationQualityCan increase perceived value & lower cost (V-C) Economies of ScopeStarbucks adding hot tea to its menuInnovationIKEA - stylist furniture in flat pack deliveryStructure, Culture, & RoutinesAmbidextrous

31、organization explore AND exploitIntel current and future products and services6-31EXHIBIT 6.8Avon Pursuing an Integration Strategy6-32EXHIBIT 6.9Value and Cost Drivers6-33Integration Strategy Corporate LevelConglomerates can coordinate above the SBU levelTata Group from India2008 bought Jaguar & Lan

32、d RoverPrestigious differentiated products2009 Tata Motors creates a Nano carLowest-priced car in the world!Zero to 60 mph in 30 secondsNo radio or glove boxTargets bicyclists to move to cars6-34LO 6-1 Define business-level strategy and describe how it determines a firms strategic position.LO 6-2 Ex

33、amine the relationship between value drivers and differentiation strategy.LO 6-3Examine the relationship between cost drivers and cost-leadership strategy.LO 6-4Assess the benefits and risks of cost-leadership and differentiation business strategies vis-vis the five forces that shape competition.LO

34、6-5Explain why it is difficult to succeed at an integration strategy.LO 6-6Evaluate value and cost drivers that may allow a firm to pursue an integration strategy.LO 6-7Describe and evaluate the dynamics of competitive positioning.6-35THE DYNAMICS OF COMPETITIVE POSITIONINGStrategic Positions need t

35、o change over timeeBay withdrew from selling new goods & sold SkypeProductivity FrontierValue-cost relationshipCaptures the best practices at a point in timeMobile Devices2005 Apple differentiator, Dell cost leader2010 Apple still differentiator, HP moving to successful integrator, Dell shifting tow

36、ard integrator6-36EXHIBIT 6.10The Dynamics of Competitive Positioning: Apple, HP, and Dell6-37CHAPTERCASE 6 Consider ThisWhole Foods continues to seek ways to differentiate 2010 enhanced its “back to school” program300 salad bars in public schools within 50-mile radius of any Whole Foods store2011 e

37、xpanded to 500 elementary, middle, and high schools across the U.S.Expanding in-store educational efforts with “wellness clubs”What value drivers is Whole Foods using to remain differentiated in the face of Walmart and others now selling organic foods?Given the discussion in the ChapterCase about Wh

38、ole Foods trimming its cost structure, does the firm risk being “stuck in the middle”? Why or why not?What other methods could Whole Foods use to successfully drive its business strategy? Whole Foods John Mackey Video6-38LO 6-1Define business-level strategy and describe how it determines a firms str

39、ategic position.Business-level strategy determines a firms strategic position in its quest for competitive advantage in a single industry or product market.Strategic positioning requires that managers address strategic trade-offs that arise between value and cost, because higher value tends to go al

40、ong with higher cost.Differentiation and cost leadership are distinct strategic positions.Besides selecting an appropriate strategic position, managers must also define the scope of competitionwhether to pursue a specific market niche or go after the broader market.LO 6-2Examine the relationship bet

41、ween value drivers and differentiation strategy.The goal of a differentiation strategy is to increase the perceived value of goods and services so that customers will pay a higher price for additional features.Take-Away Concepts6-39In a differentiation strategy, the focus of competition is on non-pr

42、ice attributes.Some of the unique value drivers managers can manipulate are product features, customer service, customization, and complements.Value drivers contribute to competitive advantage only if their increase in value creation (V) exceeds the increase in costs (C).LO 6-3Examine the relationsh

43、ip between cost drivers and cost-leadership strategy.The goal of a cost-leadership strategy is to reduce the firms cost below that of its competitors.In a cost-leadership strategy the goal is to reduce the firms costs below that of its competitors. The focus is on lowest-possible price with acceptab

44、le quality.Some of the unique cost drivers that managers can manipulate are the cost of input factors, economies of scale, and learning- and experience-curve effects.No matter how low the price, if there is no acceptable value proposition, the product or service will not sell.Take-Away Concepts (con

45、td)6-40Take-Away Concepts (contd)LO 6-4 Assess the benefits and risks of cost-leadership and differentiation business strategies vis-vis the five forces that shape competition. The five forces model helps managers use generic business strategies to protect themselves against the industry forces that

46、 drive down profitability.Differentiation and cost-leadership strategies allow firms to carve out strong strategic positions, not only to protect themselves against the five forces, but also to benefit from them in their quest for competitive advantage.Exhibit 6.7 lists benefits and risks of each bu

47、siness strategy.6-41LO 6-5Explain why it is difficult to succeed at an integration strategy. A successful integration strategy requires that trade-offs between differentiation and low cost be reconciled. Integration strategy often is difficult because the two distinct strategic positions require internal val