Dynamic Strategy动态策略.pptVIP

* Dynamic View of Strategy Writtent by Constantinos C. Markides Presented by David and Thao Heart and Soul Who should the company target? What products/services should be offered? How can this be done efficiently? Uniqueness is Transitory Success stems from exploiting an unparalleled strategic position Uniqueness will not last Competitors will imitate attractive positions New strategic positions will emerge Emerging Positions A new strategic position is simply another viable who-what-how combination As industries change, new strategic positions arise to challenge existing positions Existing niches expand while others die, new positions appear, markets fragement, and older niches merge to form larger markets Two types of entry It is important to recognize two types of entry Imitative entry Innovative entry Imitative Entry Could potentially erode profits in two interrelated ways: By increasing total industry supply (and thus driving prices down); Through strategy convergence, whereby new entrants imitate the strategies of incumbent firms. The relative strength of strategy convergence (*) Strategic differentiation in the industry declined by 83% in the period 1992-98. This reduced industry profitability by 50%. By contrast, the addition of new capacity by new entry caused a 19% decline in industry profitability. Imitative entry and “strategy convergence” are not as beneficial as we assume. Uniqueness is transitory since new positions continually emerge (*) Costas Markides. Market Dynamics and Entry. .uk/our_role/cc_lectures/geroski_markides_pres_2.pdf Innovative Entry How can a company prepare for the unknown? Innovative Entry Become the innovator Exploit Someone else’ innovation It’s not just new products or new technologies. It could be new business models. The role of small Vs. Big firms* Small firms and new entrants are good at “creation” Large firms (established incumbents) are good at “scaling up”new, radical products. (*) Costas Markides. Market Dy