Week 5 & 6

1. Competitive stratergy

   Nota:

   • How a business achieves competitive advantage in its industry
2. Competitive advantage

   Nota:

   • How a company makes its results better than that of competitors. 

Nota:

• Focuses on a clearly defined niche of customers and identifies their needs.

Nota:

• No frills strategy where low price means low quality/percieved value to customers. Buyers have high power.

Nota:

• seeks to differentiate product/service and offer lower price than competitors.

Nota:

• To create a higher perceived value of product/service so can justify higher price. Often will have to choose between expansion and targeting of smaller market.

Nota:

• When locked into one supplier due to high switching costs. e.g windows and its opperating system, cheap razors with only one type of blade can be used.

Nota:

• Strategy changes based on how competitors are performing and their current strategy. Constantly changing.

Nota:

• Strategies that tend to develop based on historical and cultral trends

1. Strategic flux

   Nota:

   • Stratergy changes but with no clear direction, conflict within firm, drop in performance and customer service

Nota:

• How a firm is percieved. Functions staff attitudes affected by structure, layers of culture, Values, beliefs, behaviours, paradigm.

1. Linked to stratergy

   Nota:

   • Can be a glue if widely accepted, can encourage or hinder innovation
2. Formal vs Informal
3. Optimal when?

   Nota:

   • 1. Match culture and strategy 2. Focus on a few critical behaviour shifts 3. Honour the strengths of your existing culture 4. Intergrate formal and informal interventions 5. Measure and monitor cultral evolution.