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CHAPTER 6
STRENGTHENING A COMPANY’S COMPETITIVE POSITION
Strategic Moves, Timing, and Scope of Operations
Student Version Copyright ®2012 The McGraw-Hill Companies, Inc. McGraw-Hill/Irwin
Maximizing the Power of a Strategy
Making choices that complement a competitive approach and
maximize the power of strategy
Offensive and Defensive
Competitive Actions
Competitive Dynamics and the
Timing of Strategic Moves
Scope of Operations along the Industry’s
Value Chain
6–2
GOING ON THE OFFENSIVE— STRATEGIC OPTIONS TO IMPROVE A FIRM’S MARKET POSITION
♦ Strategic Offensive Principles:
● Relentlessly build competitive advantage and then convert it into sustainable advantage.
● Create and deploy resources in ways that cause rivals to struggle to defend themselves.
● Employ the element of surprise as opposed to doing what rivals expect and are prepared for.
● Display a strong bias for swift, decisive, and overwhelming actions to overpower rivals.
6–3
Choosing Which Rivals to Attack
Best Targets for Offensive Attacks
Market leaders that are
vulnerable
Runner-up firms with weaknesses
in areas where the challenger
is strong
Struggling enterprises on
the verge of going under
Small local and regional
firms with limited capabilities
6–4
DEFENSIVE STRATEGIES— PROTECTING MARKET POSITION AND COMPETITIVE ADVANTAGE
Purposes of Defensive Strategies
Lower the firm’s risk of being attacked
Weaken the impact of an attack
that does occur
Influence challengers to aim their efforts
at other rivals
6–5
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