Professional Documents
Culture Documents
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Understand why every company needs a sound strategy Develop an awareness of the five most dependable strategic approaches Understand that a companys strategy tends to evolve over time Learn why it is important for a company to have a viable business model
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Market standing
Competitive resources and capabilities Changing industry conditions
How to attract and please customers. How to compete against rivals. How to position the firm in the marketplace to
market conditions.
How to manage each functional piece of the
business.
How to achieve the firms performance targets.
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low-cost provider
broad differentiation
focused low-cost
focused differentiation
best-cost provider
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Competitors make unexpected moves The needs and preferences of buyers change New market opportunities emerge Managers develop new ideas to improve the strategy Evidence mounts that the strategy is not working well
A
strategy evolves:
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Model
service to customers that will generate revenues sufficient to cover costs and yield an attractive profit.
Business
Model Elements
structure will allow for acceptable profits given the pricing tied to its customer value proposition.
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Redbox
Economical 24-hour movie rentals and purchases that could be picked up at conveniently located DVD kiosks. Revenue Generation: Customers could rent DVDs and purchase DVDs from Redboxs DVD vending machine kiosks. Cost Structure: Fixed and variable costs associated with the kiosk purchases and deployment, DVD acquisitions, licensing fees and revenue sharing agreements, website operation and maintenance, kiosk stocking, and administrative activities. Profit Margin: Redboxs profitability was dependent on generating sufficient revenues from DVD rentals and sales to cover costs and provide for a healthy bottom line.
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Fit
Competitive Advantage
Performance
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standing?
Assessing
Do they have good fit? Do they offer a sustainable competitive advantage? Are they capable of contributing to above-average
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