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Chapter 6 - Strengthening a company’s competitive position: Strategic moves, timing, and scope of operations. After studying this chapter, you should be able to: Learn whether and when to pursue offensive or defensive strategic moves to improve a company's market position, recognize when being a first mover or a fast follower or a late mover is most advantageous, become aware of the strategic benefits and risks of expanding a company's horizontal scope through mergers and acquisitions,. | CHAPTER 6 STRENGTHENING A COMPANY’S COMPETITIVE POSITION Strategic Moves, Timing, and Scope of Operations Student Version McGraw-Hill/Irwin Copyright ®2012 The McGraw-Hill Companies, Inc. Maximizing the Power of a Strategy Offensive and Defensive Competitive Actions Competitive Dynamics and the Timing of Strategic Moves Scope of Operations along the Industry’s Value Chain Making choices that complement a competitive approach and maximize the power of strategy GOING ON THE OFFENSIVE—STRATEGIC OPTIONS TO IMPROVE A FIRM’S MARKET POSITION Strategic Offensive Principles: Relentlessly build competitive advantage and then convert it into sustainable advantage. Create and deploy resources in ways that cause rivals to struggle to defend themselves. Employ the element of surprise as opposed to doing what rivals expect and are prepared for. Display a strong bias for swift, decisive, and overwhelming actions to overpower rivals. Choosing Which Rivals to Attack Market leaders that are vulnerable Runner-up firms with weaknesses in areas where the challenger is strong Struggling enterprises on the verge of going under Small local and regional firms with limited capabilities Best Targets for Offensive Attacks DEFENSIVE STRATEGIES—PROTECTING MARKET POSITION AND COMPETITIVE ADVANTAGE Lower the firm’s risk of being attacked Weaken the impact of an attack that does occur Influence challengers to aim their efforts at other rivals Purposes of Defensive Strategies TIMING A FIRM’S OFFENSIVE AND DEFENSIVE STRATEGIC MOVES Timing’s Importance: Knowing when to make a strategic move is as crucial as knowing what move to make. Moving first is no guarantee of success or competitive advantage. The risks of moving first to stake out a monopoly position must be carefully weighted. STRENGTHENING A COMPANY’S MARKET POSITION VIA ITS SCOPE OF OPERATIONS Range of its activities performed internally Breadth of its product and service offerings Extent of its geographic market . | CHAPTER 6 STRENGTHENING A COMPANY’S COMPETITIVE POSITION Strategic Moves, Timing, and Scope of Operations Student Version McGraw-Hill/Irwin Copyright ®2012 The McGraw-Hill Companies, Inc. Maximizing the Power of a Strategy Offensive and Defensive Competitive Actions Competitive Dynamics and the Timing of Strategic Moves Scope of Operations along the Industry’s Value Chain Making choices that complement a competitive approach and maximize the power of strategy GOING ON THE OFFENSIVE—STRATEGIC OPTIONS TO IMPROVE A FIRM’S MARKET POSITION Strategic Offensive Principles: Relentlessly build competitive advantage and then convert it into sustainable advantage. Create and deploy resources in ways that cause rivals to struggle to defend themselves. Employ the element of surprise as opposed to doing what rivals expect and are prepared for. Display a strong bias for swift, decisive, and overwhelming actions to overpower rivals. Choosing Which Rivals to Attack Market leaders that are .
