Lecture Crafting and executing strategy (17/e): Chapter 5 - Arthur A. Thompson, A. J. Strickland III, John E. Gamble

Chapter 5: The Five Generic Competitive Strategies: Which One to Employ? Screen graphics created by: Jana F. Kuzmicki, Ph.D. Troy University McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Learning Objectives 1. Gain command of how each of the five generic competitive strategies lead to competitive advantage and deliver superior value to customers. 2. Learn why some of the five generic strategies work better in certain kinds of industry and competitive conditions than in others. 3. Learn the major avenues for achieving a competitive advantage based on lower costs. 4. Learn the major avenues for developing a competitive advantage based on differentiating a company’s product or service offering from the offerings of rivals in ways that better satisfy buyer needs and preferences. 5-2 Chapter Roadmap The Five Competitive Strategies Low-Cost Provider Strategies Broad Differentiation Strategies Best-Cost Provider Strategies Focused (or Market Niche) Strategies The Contrasting Features of the Five Generic Competitive Strategies: ASummary 5-3 Strategy and Competitive Advantage Competitive advantage exists when a firm’s strategy gives it an edge in Attracting customers and Defending against competitive forces Key to Gaining a Competitive Advantage Convince customers firm’s product / service offers superior value Agood product at a low price Asuperior product worth paying more for Abest-value product 5-4 What Is Competitive Strategy? Deals exclusively with a company’s business plans to compete successfully Specific efforts to please customers Offensive and defensive moves to counter maneuvers of rivals Responses to prevailing market conditions Initiatives to strengthen its market position Narrower in scope than business strategy 5-5 ... - tailieumienphi.vn