STRATEGIC MANAGEMENT COMPETITIVENESS AND GLOBALIZATION: CONCEPTS AND CASES
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Contents
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Contents
6: Corporate-Level Strategy 176 Opening Case: Amazon’s Successful Growth through Its Corporate Diversification Strategy 177 6-1 Levels of Diversification 179 6-1a Low Levels of Diversification 180 6-1b Moderate and High Levels of Diversification 181 Strategic Focus Caterpillar Uses the Related Constrained Diversification Strategy 182 6-2 Reasons for Diversification 183 6-3 Value-Creating Diversification: Related Constrained and Related Linked Diversification 185 6-3a Operational Relatedness: Sharing Activities 185 6-3b Corporate Relatedness: Transferring of Core Competencies 186 6-3c Market Power 187 6-3d Simultaneous Operational Relatedness and Corporate Relatedness 189 6-4 Unrelated Diversification 190 6-4a Efficient Internal Capital Market Allocation 190 Strategic Focus Berkshire Hathaway and SoftBank Use Similar Unrelated Strategies 191 6-4b Restructuring of Assets 192 6-5 Value-Neutral Diversification: Incentives and Resources 193 6-5a Incentives to Diversify 193 6-5b Resources and Diversification 196 6-6 Value-Reducing Diversification: Managerial Motives to Diversify 198 Summary 200 ● Key Terms 200 ● Review Questions 200 ● Mini-Case 201 ● Notes 202 7: Merger and Acquisition Strategies 208 Opening Case: Cisco Systems: Strategic Acquisitions to Adapt to a Changing Market 209 7-1 The Popularity of Merger and Acquisition Strategies 210 7-1a Mergers, Acquisitions, and Takeovers: What Are the Differences? 211 7-2 Reasons for Acquisitions 212 7-2a Increased Market Power 212 Strategic Focus Broadcom’s Failed Hostile Takeover Attempt of Qualcomm 213 7-2b Overcoming Entry Barriers 215 7-2c Cost of New Product Development and Increased Speed to Market 216 Strategic Focus Cross-Border Mega Mergers in the Agricultural Chemical and Technology Sectors 217 7-2d Lower Risk Compared to Developing New Products 218 7-2e Increased Diversification 218
4-1b Reach, Richness, and Affiliation 108 4-1c Who: Determining the Customers to Serve 109
4-1d What: Determining Which Customer Needs to Satisfy 110 4-1e How: Determining Core Competencies Necessary to Satisfy Customer Needs 111
4-2 The Purpose of a Business-Level Strategy 112 4-3 Business Models and Their Relationship with Business- Level Strategies 113 4-4 Types of Business-Level Strategies 114
4-4a Cost Leadership Strategy 116 4-4b Differentiation Strategy 120 4-4c Focus Strategies 124 Strategic Focus The Differentiation Strategy—Can Macy’s Again Find Ways to Achieve Success by Implementing This Strategy? 125 Strategic Focus What Type of Hamburger Would You Like to Buy and Eat Today? 128 4-4d Integrated Cost Leadership/Differentiation Strategy 130 Summary 133 ● Key Terms 134 ● Review Questions 134 ● Mini-Case 135 ● Notes 136 5: Competitive Rivalry and Competitive Dynamics 142 Opening Case: The Grocery Industry: Welcome to a New Competitive Landscape 146 Strategic Focus The Emergence of Competitive Rivalry among Battery Manufacturers: Who Will Establish the Most Attractive Market Position? 146 5-1 A Model of Competitive Rivalry 148 5-2 Competitor Analysis 149
5-2a Market Commonality 150 5-2b Resource Similarity 151 5-3 Drivers of Competitive Behavior 152 5-4 Competitive Rivalry 154 5-4a Strategic and Tactical Actions 154 5-5 Likelihood of Attack 155
5-5a First-Mover Benefits 155 5-5b Organizational Size 157 5-5c Quality 158 5-6 Likelihood of Response 159
5-6a Type of Competitive Action 159 5-6b Actor’s Reputation 160 5-6c Market Dependence 160
7-2f Reshaping the Firm’s Competitive Scope 219 7-2g Learning and Developing New Capabilities 219 7-3 Problems in Achieving Acquisition Success 219 7-3a Integration Difficulties 220 7-3b Inadequate Evaluation of Target 221 7-3c Large or Extraordinary Debt 222 7-3d Inability to Achieve Synergy 222 7-3e Too Much Diversification 223 7-3f Managers Overly Focused on Acquisitions 224 7-3g Too Large 224
5-7 Competitive Dynamics 161 5-7a Slow-Cycle Markets 161 Strategic Focus Swiss Watchmakers: The Eroding of a Long-Lasting Competitive Advantage While Competing in a Slow-Cycle Market? 162 5-7b Fast-Cycle Markets 164 5-7c Standard-Cycle Markets 166 Summary 167 ● Key Terms 168 ● Review Questions 168 ● Mini-Case 169 ● Notes 170
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