MindMap Gallery Chapter 3 Strategic Choice-6 Business (Competition) Unit Strategy
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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.
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.
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
Cost leadership strategy
Advantage
(1) Create a barrier to entry.
(2) Enhance bargaining power.
(3) Reduce the threat of substitutes.
(4) Maintain a leading competitive position.
Implementation conditions
(1) Market conditions
①The product has high price elasticity, and there are a large number of price-sensitive users in the market; ② The products of all enterprises in the industry are standardized products, and it is difficult to differentiate products; ③Buyers don’t pay much attention to the brand; ④Price competition is the main means of market competition; ⑤Consumers' switching costs are low.
(2) Resources and capabilities.
①Equip corresponding production facilities in industries with significant economies of scale to achieve economies of scale. ② Reduce the costs of various factors. ③Improve productivity. ④Improve product process design. ⑤ Improve the utilization of production capacity ⑥ Choose an appropriate transaction organization form. ⑦ Centralized allocation of resources.
risk
(1) Changes in technology may wipe out past low-cost investments (such as scale expansion, process innovation, etc.) and accumulated experience. (2) New entrants or followers in the industry achieve similar or even lower product costs by imitating or using facilities with a higher technical level. (3) Market demand has shifted from focusing on price to focusing on product brand image, turning the company's original advantages into disadvantages.
Differentiation Strategy
Advantage
(1) Create a barrier to entry.
(2) Reduce customers’ price sensitivity.
(3) Enhance bargaining power.
(4) Resist the threat of substitutes.
Mainly depends on the performance and price of the two products Comparison of comparison
Implementation conditions
(1) Market conditions.
① The product can be fully differentiated and recognized by customers; ②Customer needs are diverse; ③The industry in which the enterprise is located undergoes rapid technological changes, and innovation becomes the focus of competition.
(2) Resources and capabilities
①Have strong R&D capabilities and product design capabilities; ②Have strong marketing capabilities; . ③ Have an incentive system, management system and a good creative culture that can ensure the stimulation of employee creativity; ④ Have the ability to improve the quality of a certain business operation as a whole, establish product image, maintain advanced technology and establish a complete Ability to improve distribution channels.
risk
(1) The cost for enterprises to differentiate their products is too high.
(2) Market demand changes.
(3) Competitors’ imitation and attacks narrow or even reverse the established differences.
centralization strategy
Concentration strategy is generally a strategy adopted by small and medium-sized enterprises and can be divided into two categories: concentrated cost leadership strategy and concentrated differentiation strategy.
2. Competitive strategies for small and medium-sized enterprises
Intelligent (Functional Level) Strategy