BUSINESS LEVEL STRATEGY

Vihar Desai

Nupur Kulkarni

Raj Raval

Bhaumik Patel

Neha Jain

Identifying strategic business units

Issues with S.B.Us• A confusion of S.B.Us• Corporate complexity• Organizational structure

Criteria to identify S.B.Us• Market-based criteria• Capabilities-based criteria

The Strategic Clock

Sustaining

Competitive

Advantage

Price-Based-Accept Reduced Margin-Win a Price War-Reduce Cost-Focus on Specific Segments

Lock-In-Achieve Market Dominance-First Mover Advantage-Reinforcement-Rigorous Enforcement

Differentiation-Create Difficulties of Imitation-Achieve imperfect mobility-Reinvest Margin

Sustaining Competitive Advantage

Competition and collaboration

Collaboration between organization is advantageous to avoid competition or to get full benefit.

Example:- collaboration between manufacturer and logistic company can help them to achieve cost benefit.

By collaboration we can achieve competitive advantages in terms of operation, sales, cost, profit etc. which is shown in fig. [a].

Game theory

It is concerned with the interrelationships between the competitive moves of a set of competitors.

Key Assumptions to understanding competitive dynamics Rationality Interdependence Get in the mind of the competitions Think forwards and reason back words.