Business Strategy Tools

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• Be competent in discussing the major concepts underpinning business level strategy and applying these in business case settings. • Be capable of applying a series of fundamental business strategy tools (including industry analysis, competitive strategy and resource and capability tools) and techniques to the formulation and analysis of value creation and capture at a strategic level. Porter 5 Force analysis Porter framework assumes: 1. industry structure drives competitive behaviour 2. Industry structure is (fairly) stable. [pic] Case: Airline Industry …. Porter’s 5 forces – purpose: Identifying the different stakeholders, or ‘forces’, which affect: • The level of competition in…show more content…
• KEY SUCCESS FACTORS o Need to combine effective differentiation with low costs. o Key differentiation variables are speed of response to changing high fashions, style, reputation and quality. o Cost efficiency requires manufacture in low wage countries. Example – Ryan Air • WHAT DO CUSTOMERS WANT? (Analysis of demand) o lowest prices o reliable within the marketplace o comfort and service o frequency. o • HOW DO FIRMS SURVIVE COMPETITION? (Analysis of competition) o Focus-differentiation strategy is aimed at a segment of the market fro a product rather than at the whole market or many markets o The successful way using focus strategy is to tailor a broad of product or service development strengths to a relatively narrow market segment that they know very well o the company offers the lowest cost of fare than its competitors in the airline o Ryanair has also become a focuser because it concentrated on a narrow customer segment which include Irish and UK business people or travellers who could not afro to fly major airlines • KEY SUCCESS FACTORS o The main goal of the company is to provide a no frills service with low fares designed to stimulate demand o Ryanair has restyled itself and shifted from a full service conventional airline to the first
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