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Chapter 3 Strategic Choice-8 Competitive Strategies for Small and Medium Enterprises
Competitive strategy in fragmented industries is an important part of analyzing fragmented industry strategies. The reason for industry fragmentation mainly comes from the basic economic characteristics of the industry itself.
Edited at 2023-04-28 12:25:45- bacteria
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Chapter 3 Strategic Choice-8 Competitive Strategies for Small and Medium Enterprises
- bacteria
This is a mind map about bacteria, and its main contents include: overview, morphology, types, structure, reproduction, distribution, application, and expansion. The summary is comprehensive and meticulous, suitable as review materials.
- Plant asexual reproduction
This is a mind map about plant asexual reproduction, and its main contents include: concept, spore reproduction, vegetative reproduction, tissue culture, and buds. The summary is comprehensive and meticulous, suitable as review materials.
- Reproductive development of animals
This is a mind map about the reproductive development of animals, and its main contents include: insects, frogs, birds, sexual reproduction, and asexual reproduction. The summary is comprehensive and meticulous, suitable as review materials.
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Strategic Choice
Overall (company) strategy
Business Unit (Competitive) Strategy
1. Basic competitive strategy
2. Competitive strategies for small and medium-sized enterprises
(1) Competitive strategies in fragmented industries
reason
It is an important part of analyzing fragmented industry strategy. The reason for industry fragmentation mainly comes from the basic economic characteristics of the industry itself.
(1) Low entry barriers or existing exit barriers.
(2) Diverse market demands lead to high product differentiation.
Fragmentation at consumer consumption locations
Products or services come in different styles. For some products or services, consumers always want to be nearby Get, for example, fast food, supermarkets, farmers markets, etc.
(3) There are no economies of scale or it is difficult to achieve economies of scale.
Specialized skills are the main source of competitive advantage in an industry
The rapid changes and diversity of market demands require rapid response and close cooperation among multiple functions.
The differences in consumer requirements for consumption locations make it impossible for highly concentrated large enterprises to meet consumer requirements.
It may be difficult to achieve the economies of scale required for economies of scale due to high transportation costs, high inventory costs or erratic sales fluctuations.
(4) If other factors are considered, such as government policies and local regulations that restrict the concentration of certain industries, and the fact that no company in a new industry has mastered sufficient skills and capabilities to occupy an important market share, etc., these factors will also lead to the industry’s decline. Scattered reasons
Strategic choices for fragmented industries
(1) Overcome fragmentation - gain cost advantage.
① Chain operation or franchise operation.
②Technological innovation to create economies of scale.
③Discover industry trends as early as possible.
(2) Increase added value - improve product differentiation.
The products or services of many scattered industries are general commodities, so there is little potential for improving differentiation in terms of the products or services themselves. In this case, an effective strategy is to increase the added value of the goods.
(3) Specialization - target aggregation
①Specialization of product types or product segments.
②Customer type specialization.
③Geographical area specialization.
Beware of potential strategic pitfalls
(1) Avoid seeking dominance
(2) Maintain strict strategic binding force
(3) Avoid excessive centralization
(4) Understand competitors’ strategic goals and management costs
(5) Avoid overreaction to new products
(2) Competitive strategies in emerging industries
It occurs when technological innovation, the emergence of new consumer demands, or other economic and social changes elevate a product or service to the level of a potentially viable business opportunity.
3. Blue Ocean Strategy
Intelligent (Functional Level) Strategy
international business strategy