Week 7

Sixth lecture (22th October 2013)

Change mood process, keep fighting!!!

Chapter 6: Strengthening A Company’s Competitive Position: Strategic Moves, Timing, And Scope Of Operations
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Sharing the experience if has ever involves in any demonstration such as elections because now we are in elections time. Make your judgment wisely because your vote is secret...

First and foremost is choosing the basic for competitive attack. If the rival good at product then we need to change our course to buyer segment. Hence, the pertinent is finding and thinks rival weaknesses. Nonetheless, avoid price war because it is easily to be copy by other company.

In this chapter there is so much more knowledge and elaborate more about strategic management. In this chapter also there is vital terms and tools that need to bear in mind.

♦      A blue-ocean strategy offers growth in revenues and profits by discovering or inventing new industry segments that create altogether new demand.

♦      A red-ocean strategy is the situation when company do not have any competitive advantage because has been taken or copied by other company.

♦      Horizontal scope is the range of product and service segments that a firm serves within its focal market.

♦      Vertical scope is the extent to which a firm’s internal activities encompass one, some, many, or all of the activities that make up an industry’s entire value chain system, ranging from raw-material production to final sales
and service activities.

♦      Backward integration involves entry into activities previously performed by suppliers or other enterprises positioned along earlier stages of the industry value chain system

♦      Forward integration involves entry into value chain system activities closer to the end user. Outsourcing involves contracting out certain value chain activities to outside vendors.