Porter

• 1979 - How competitive forces shape strategy

  Use the 5 forces to analyse the attractiveness and long-run profitability of an industry

  5 Forces:

  1. Industry Rivalry
  2. Threat of substitution
  3. Threat of new entrants
  4. Buyer power
  5. Supplier power
• 1979 - How competitive forces shape strategy

  6 Major sources of barriers to entry:

  1. Economies of scale
  2. Capital requirements
  3. Product differentiation
  4. Cost disadvantages
  5. Access to distriution channels
  6. Government policy
• 1979 - How competitive forces shape strategy

  Tactics in industry rivalry:

  • Price competition; promotions
  • Product information/differentiation
  • Advertising slugfests
• 1980 - Competitive Strategy


  3 (4) generic strategies for competitive advantage:

  1. Cost-leadership
  2. Differentiation
  3. Focus strategies:

  • Low Cost
  • Niche
• 1980 - Competitive Strategy


  Sustainable competitive advantage through:

  1. Barriers to imitation
  2. Continuous improvement
• 1985 - Creating and Sustaining Superior Performance


  Value Chain: Primary and support activities.

  Identify where value is created in the firm; each step of the value chain should add value

  Firms must pick either cost differentiation or quality differentiation; do not get stuck in the middle

  
  

  Value System: Extends the value chain. Value system encompasses suppliers, distributers, customers
• 1981 - Contributions of Industrial Organisation to Strategic Management


  Industry Structure --> Strategy --> Performance

  TO

  Performance --> Strategy --> Industry Structure

  Through strategic entry deterrence for example
• 1989 - From Competitive Advantage to Corporate Strategy


  3 tests managers should use to determine corporate strategy:

  1. Attractiveness Test
  2. Cost of entry test
  3. Better-off test
• 1996 - What is strategy?

  Recognises trade-offs in positioning.

  Positioning means performing different activities better, or the same ones differently

  Competing on Operational Effectiveness is NOT strategy
• 1996 - What is Strategy

  The rapid diffusion of best practices means that it is not sufficient to achieve OE; competitors quickly imitate management techniques

  Competitive Convergence: The race down identical paths that nobody can win
• 1996 - What is strategy

  Three distinct sources of strategic positions:

  1. Variety-Based
  2. Needs-Based
  3. Access-Based
• 1998 - Clusters and the new economics of competition


  Clusters increase competition which drives productivity, innovation, and business formation