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SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Welcome toBusiness Strategy and Policy
John A. Hengeveld
week 1 part 2
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Introduction and Logistics
• Review and Discussion of key readings
• A little review from Grant
• The Innovators Solution
• Ambidextrous Organizations
• B&E: Chapter 1
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Review from Grant
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Resources and Capabilities
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Profit Potential of Resources
From Grant: Contemporary Strategy Analysis, Blackwell, 1998
The ProfitEarning Potential
of a Resourceor Capability
Scarcity
Relevance
Durability
Mobility
Replicability
The Extent of theCompetitiveAdvantageEstablished
Sustainability ofCompetitiveAdvantage
Appropriability
Property Rights
Relative Bargaining Power
Embeddedness
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Graphically
Goals andValues
ResourcesCapabilities
Structure & Systems
Grant: Figure 1.2
The Firm
Strategy
Competitors
Customers
Suppliers
Industry Environment
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Intra-Industry AnalysisIntra-Industry Analysis
• Game theory
• Competitor Analysis
• Segmentation
• Strategic Groups
OUTLINE
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
The Contribution of Game Theory to Competitive Analysis
The Contribution of Game Theory to Competitive Analysis
Main value:1. Framing strategic decisions as interactions between competitors2. Predicting outcomes of compeittive situations involving a few
players
Some key concepts:1. Competition and Cooperation—Game theory can show conditions
where cooperation more advantagfeeous than comeptition2. Deterrence—changing the payoffs in the game in order to deter
a comeptitor from certain actions3. Commitment—irrevokable demployments of resoruces that
give criditability to threats4. Signaling—communication to influnece a comeptior’s decision
Problems of game theory:Useful in explaining past competitive behavior—weak in prediucting future competive behaoir.What’s the problem? — Multitude of models, outcomes highly sensitive to small changes in assumptions
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
PREDICTIONS
• What strategy changes will the competitor initiate?
• How will the competitor respond to our strategic initiatives?
OBJECTIVESWhat are competitor’s current goals?Is performance meeting there goals?How are its goals likely to change?
STRATEGYHow is the firm competing?
ASSUMPTIONSWhat assumptions does the competitorhold about the industry and itself?
RESOURCES & CAPABILITIESWhat are the competitors’ key strengths and weaknesses?
A Framework for Competitor Analysis A Framework for Competitor Analysis
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Segmentation Analysis: The Principal Stages
Segmentation Analysis: The Principal Stages
• Identify key variables
and categories.
• Construct a segmentation matrix
• Analyze segment attractiveness
• Identify KSFs in each segment
• Analyze benefits of broad vs. narrow scope.
Identify segmentation variablesReduce to 2 or 3 variablesIdentify discrete categories for each variable
Potential for economiesof scope across segmentsSimilarity of KSFsProduct differentiation benefitsof segment focus
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
The Basis for Segmentation: Customer and Product Characteristics The Basis for Segmentation: Customer and Product Characteristics
Opportunities forDifferentiation
Opportunities forDifferentiation
Characteristics of the Buyers
Characteristics of the Buyers
Characteristics of the Product
Characteristics of the Product
Industrial buyersIndustrial buyers
Household buyersHousehold buyers
Distribution channelDistribution channel
Geographicallocation
Geographicallocation
*Size*Technical sophistication*OEM/replacement
*Size*Technical sophistication*OEM/replacement
*Demographics*Lifestyle*Purchase occasion
*Demographics*Lifestyle*Purchase occasion
*Size*Distributor/broker*Exclusive/ nonexclusive*General/special list
*Size*Distributor/broker*Exclusive/ nonexclusive*General/special list
*Physical size*Price level*Product features*Technology design*Inputs used (e.g. raw materials)*Performance characteristics*Pre-sales & post-sales services
*Physical size*Price level*Product features*Technology design*Inputs used (e.g. raw materials)*Performance characteristics*Pre-sales & post-sales services
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Segmenting the European Metal Can IndustrySegmenting the European Metal Can Industry
Food Fruit Juice Pet food Soft drink Beer Oil
Steel 3-piece
Steel 2-piece
Aluminum 2-piece
General cans
Composite cans
Aerosol cans
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Segmenting the World Automobile MarketSegmenting the World Automobile Market
REGION US& Canada W.Europe E.Europe Asia Lat America Australia Africa
Luxury Cars
Full-size sedans
Mid-size sedans
Small sedans
Station wagons
Passenger minivans
Sports cars
Sport-utility
Pick-up trucks
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
0
5
0
10
15
20
25%
100%Share of industry revenue
Auto loans
Leasing
Warranty
Gasoline
Auto insurance
Aftermarket parts
Auto rentalO
per
atin
g m
arg
in
Auto manufacturing
New car dealers
Used car dealers
Service & repair
Vertical Segmentation & Industry Profit Pools—The US Auto Industry
Vertical Segmentation & Industry Profit Pools—The US Auto Industry
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
SEGMENT
Low price bicycles sold primarily through department and discount stores, mainly under the retailer’sown brand (e.g. Sears’ “Free Spirit”);
KEY SUCCESS FACTORS
* Low-costs through global sourcing of components & low-wage assembly.* Supply contract with major retailer.
Leading competitors: Taiwanese & Chinese assemblers,some U.S manufacturers, e.g. Murray Ohio, Huffy
Medium-priced bicycles sold primarily under manufacturer’s brandname and distributed mainly throughspecialist bicycles stores;
*Cost effieciency through large scale operation and either low wages or automated manufacturing.*Reputation for quality (durability, reliability) through effective marketing to dealers and/or consumers.* International marketing & distribution.
Leading competitors: Raleigh, Giant, Peugeot, Fuji
*Quality of components and assembly, Innovation in design (e.g. minimizing weight and wind resistence).*Reputation (e.g. through success in racing, through effective brand management).*Strong dealer relations.
Similar to low-price bicycle segment.
High-priced bicycles for enthusiasts.
Children’s bicycles (and tricycles) soldprimarily through toy retailers (discount toy stores, department stores, and specialist toy stores).
Segmentation and Key Success Factors in the U.S. Bicycle Industry Segmentation and Key Success Factors in the U.S. Bicycle Industry
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Strategic Group AnalysisStrategic Group Analysis
A strategic group is a group of firms in an industry following the same or similar strategy.
Identifying strategic groups:• Identify principal strategic
variables which distinguish firms.
• Position each firm in relation
to these variables.• Identify clusters.
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Broad
PRODUCT RANGERANGE
Narrow
National GEOGRAPHICAL SCOPE Global
NATIONALLY- FOCUSED, SMALL, SPECIALIST
PRODUCERS e.g., Bristol (U.K.), Classic Roadsters
(U.S.), Morgan (U.K.)
NATIONALLY FOCUSED, INTERMEDIATE LINE
PRODUCERS
e.g. Tofas, Kia, Proton, Maruti
REGIONALLY-FOCUSED BROAD-LINE PRODUCERS
e.g. Fiat, PSA, Renault,
PERFORMANCE CAR PRODUCERS
e.g., Porsche, Maserati, Lotus
LUXURY CAR MANUFACTURERS
e.g., Jaguar, Rolls Royce, BMW
GLOBAL SUPPLIERS OF NARROW MODEL RANGE e.g., Volvo, Subaru, Isuzu,
Suzuki, Saab, Hyundai
GLOBAL, BROAD-LINEPRODUCERS
e.g., GM, Ford, Toyota, Nissan, Honda, VW, Daimler
Chrysler
Strategic Groups in the World Automobile Industry Strategic Groups in the World Automobile Industry
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Geographical Scope
0 10 20 30 40 50 60 70 80
Ver
tica
l Bal
ance
00.
51.
01.
52.
0
NATIONALPRODUCTION COMPANIES
INTEGRATED INTERNATIONAL
MAJORS
NATIONALLY-FOCUSEDDOWNSTREAM COMPANIES
INTEGRATED DOMESTICOIL COMPANIES
Chevron Royal Dutch-Shell Gp.
Exxon-Mobil
Statoil
PDVSA
Kuwait Petroleum
Petronas
Petrobras
RepsolNippon
Tosco
BP-Amoco
TexacoPhillips
Pemex
Indian Oil
ENI
INTEGRATED OIL MAJORSINTERNATIONALUPSTREAM,REGIONALLYFOCUSEDDOWNSTREAM
IranNOC
E.g. Neste
PhillipsENI
Elf-Fina-TotalRepsol INTERNATIONAL
DOWNSTREAM OIL COMPANIES
INTERNATIONALUPSTREAMCOMPANIES
Enterprise
PremierOil
YPF
Strategic Groups Within the World Petroleum Industry Strategic Groups Within the World Petroleum Industry
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Generic Strategies
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
The Emergence of Competitive Advantage
The Emergence of Competitive Advantage
How does competitive advantage emerge?
External sources ofchange e.g.:•Changing customer demand•Changing prices•Technological change
Internal sources of change
Resource heterogeneity among firms means differential impact
Some firms faster and more effective
in exploiting change
Some firmshave greater creative
and innovativecapability
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Competitive Advantage from Internally-Generated Change: Strategic InnovationCompetitive Advantage from Internally-Generated Change: Strategic Innovation
Characteristics of innovatory strategies:– Associated with new entrants to an industry (e.g. Nucor in
steel, IKEA in furniture, Enron in energy, Home Depot in DIY, Dell in PCs)
– Reconcile conflicting performance goals (e.g. Toyota’s lean production system combines low cost, high quality, and flexibility. Richardson Sheffield in kitchen knives is low cost, innovative and customer responsive.)
– Reconfiguring the value chain e.g.---• Nike’s system for manufacturing and distributing shoes totally
different from traditional shoe manufacturer• Southwest Airlines simplification of the normal airline value chain• Zara’s system of design, manafacture, and distribution
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
REQUIREMENT FOR IMITATION
Identification - Obscure superior performance
- Deterrence--signal aggressiveIncentives for imitation intentions to imitators
- Pre-emption--exploit all available investment opportunities
- Rely upon multiple sources of Diagnosis competitive advantage to create
“causal ambiguity”
- Base competitive advantage upon Resource acquisition resources and capabilities that are
immobile and difficult to replicate
ISOLATING MECHANISM
Sustaining Competitive Advantage Against ImitationSustaining Competitive Advantage Against Imitation
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Competitive Advantage in Different Market Settings
Competitive Advantage in Different Market Settings
SOURCE OF IMPERFECTIONOF COMPETITION
MARKET TYPE OPPORTUNITY FORCOMPETITIVE ADVANTAGE
TRADING MARKETS
•None (efficient markets)•Imperfect information availability•Transactions costs•Systematic behavioral trends
•Overshooting
NoneInsider tradingCost minimizationSuperior diagnosis(e.g.... chart analysis)Contrarianism
PRODUCTION MARKETS
•Barriers to imitation
•Barriers to innovation
Identify barriers to imitation (e.g. deterrence, preemption, causal ambiguity, resource immobility,barriers to resource replication) & base strategy upon them.Difficult to influence or exploit.
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
TRADING MARKETS
•None (efficient markets)•Imperfect information availability•Transactions costs•Systematic behavioral trends
•Overshooting
NoneInsider tradingCost minimizationSuperior diagnosis(e.g.... chart analysis)Contrarianism
PRODUCTION MARKETS
•Barriers to imitation
•Barriers to innovation
Identify barriers to imitation (e.g. deterrence, preemption, causal ambiguity, resource immobility,barriers to resource replication) & base strategy upon them.Difficult to influence or exploit.
MARKET TYPE
SOURCE OF IMPERFECTION
OF COMPETITION
OPPORTUNITY FOR COMPETITIVE
ADVANTAGE
Competitive Advantage in Different Industry Settings: Trading Markets and Production Markets
Competitive Advantage in Different Industry Settings: Trading Markets and Production Markets
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Sources of Competitive AdvantageSources of Competitive Advantage
COST ADVANTAGE
COST ADVANTAGE
DIFFERENTIATIONADVANTAGE
DIFFERENTIATIONADVANTAGE
COMPETITIVEADVANTAGE
COMPETITIVEADVANTAGE
Similar product
at lower cost
Price premium
from unique product
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Porter’s Generic StrategiesPorter’s Generic Strategies
SOURCE OF COMPETITIVE ADVANTAGE
Low cost Differentiation
Industry-wide COST DIFFERENTIATION
COMPETITIVE LEADERSHIP
SCOPE
Single Segment F O C U S
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Features of Cost Leadership and Differentiation Strategies
Features of Cost Leadership and Differentiation Strategies
Generic strategy Key strategy elements Resource & organizational
requirements
COST Scale-efficient plants. Access to capital. Process
LEADERSHIP Design for manufacture. engineering skills. Frequent
Control of overheads & reports. Tight cost control.
R&D. Avoidance of Specialization of jobs and
marginal customer functions. Incentives for
accounts. quantitative targets.
DIFFERENTIATION Emphasis on branding Marketing. Product
and brand advertising, engineering. Creativity.
design, service, and Product R&D
quality. Qualitative measurement and incentives.
Strong cross-functional
coordination.
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
The Innovators Solution
Time
Perf
orm
ance
Sustaining Innovations
Disruptive Innovations
Pace of Technological Progress
Performance That Customers
Can Utilize and Absorb Range Of SolutionsCustomersCanUtilize
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Types of Disruptions
• New Market Disruptions– Compete against non consumption
• Low End Disruptions– Offer lower cost solutions to overserved
customers
• Sustaining Innovations– Continuous improvement of product to existing
customers
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Ambidextrous Organizations
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Ambidextrous Organizations
• Congruence Model – from the book this was a part of.
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Congruence ModelTushman and O’Reilly
Formal OutputsBalanced
ScoreCard:FinancialGrowth
Profitability
CUSTOMERInternal
Learning and Growth
EnvironmentResourcesHistory
Formal Organizat
ion
Financial Systems
Organizational
Structure
Policies
Etc
Informal Organizatio
n-
Characterize the
Way things Really get
done
People
Management TrainingTechnical
SkillsFunctional
SkillsLong term development needs
Strategy
Critical Tasks
-The few key tasks whose success is
essential to implementation of strategy
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Key to Congruence Analysis
• Assess the degree of alignment of each “link”
• Organizations where these 7 items are “congruent” (represent the same shape and size, although projected into different axis) have a far superior chance of successful implementation to strategy
• The agenda for change is fixing the links.
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Technology CyclesR
ate
of I
nnov
atio
n
Time
Product innovation Process Innovation
Substitution EventDD DD
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Examples of Technology Cycles
• VCR
• Audio Recording and Distribution
• Computers?
• Telecommunication?
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Types of Innovation andInnovation Streams
T&O, Winning Through Innovation, figure 7.3
InexpensiveMechanical Watch
Smaller, ThinnerMechanicalWatches
Swatch
ContinuousAim gunfire
First Watch
Quartz Watch
New
Existing
Mar
kets
IncrementalSmall Extensionsof ExistingTechnology
ArchitecturalReconfiguresExistingTechnology
DiscontinuousNew operating principles inCore Subsystems&/or DiscontinuousProcess innovation
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Organizational CyclesThe success syndrome
FIT SUCCESS
Size and AgeInertia:StructuralCultural
Successin StableMarkets
Failurein MarketShifts
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Ambidextrous Organizationsfrom WTI, figure 7.6
Executive Team•Provide Clear, Simple Vision•Balance Multiple Architectures•Makes Bets on Shifting Innovation•Manage Ambidextrously
•Today/Tomorrow•Large/Small – Incremental/Discontinuous
Inc•Culture Promoting
Continuous Improvement•Incremental Change•Eliminate Variability
•Reward Volume & Cost
Arch•Culture Promoting
Linkage Across Units•Adding and Linking
Subsystems•Reward Integration
Disc•Culture Promoting
Breakthroughs•Many Small Failures
•Learn by Doing•Reward Experimentation
and Innovation
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
B&EFive Forces
Assumptions Stable
Industry
Goal Defensible position
Performance
Driver
Industry
structure
Strategy Pick Industry
Pick position
Shape firm
Success Profits
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
B&ECore
Competence
Assumptions Firm as bundle of competences
Goal Sustainable
advantage
Performance
Driver
Unique
competencies
Strategy Craft vision
Build competencies to
match
Success Long Term
Dominance
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
B&EGame
Theory
Assumptions Dynamic
Oligopoly
Goal Temporary
advantage
Performance
Driver
Right
Moves
Strategy Make the right
Competitive &
Collaborative moves
Success Short Term
Wins
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
B&ECompeting
On the Edge
Assumptions Industry inRapid change
Goal Continuous
Flow of adv.
Performance
Driver
Ability
To change
Strategy Gain the edge:
Time pace, shape
semicoherent,
Strat. direction
Success Continual
Reinvention
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
B&EFive Forces Core
CompetenceGame
Theory
Competing
On the Edge
Assumptions Stable
Industry
Firm as bundle of competences
Dynamic
Oligopoly
Industry inRapid change
Goal Defensible position
Sustainable
advantage
Temporary
advantage
Continuous
Flow of adv.
Performance
Driver
Industry
structure
Unique
competencies
Right
Moves
Ability
To change
Strategy Pick Industry
Pick position
Shape firm
Craft vision
Build competencies to
match
Make the right
Competitive &
Collaborative moves
Gain the edge:
Time pace, shape
semicoherent,
Strat. direction
Success Profits Long Term
Dominance
Short Term
Wins
Continual
Reinvention
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
B&E Chapter 1
Playing the Improvisational Edge
Capturing Cross-BusinessSynergies
-Coadaptation
Gaining Advantagesfrom the Past-Regeneration
Winning TomorrowToday
-options-learning
Setting the Pace-time pacing
Time Pacing
Edge of Time
Edge of Chaos
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM