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Anushri Vishwakarma PGP29381

The strategy-circus reflection sheet
My interconnections with among the cases so far
What are the similarities and differences in the situations I got involved in? Similarities: With increasing competition in almost every field, all the firms need to maintain competitive advantage in order to retain their market share. This can only be done when the firm creates more value for the customers that its competitors. In all the three cases the firm creates value for the customers, for example: Apple differentiates its product from its competitors by technological innovation, Easy Jet created value for the customers by operating in the low airlines segment and Levis by being the first mover in the customized jeans segment. All these cases also lead to the conclusion that in order to maintain a competitive edge, the firms need to continuously innovate either by product differentiation or by venturing into new markets by extending their product line. Like Apple ventured into iPods and iTunes, iPhone, Apple TV etc. And even Easy Jet thought of extending its low cost business model into other industries like car rentals, cybercafé, etc. Whether or not a segment is profitable, requires an analysis of the threat of rivalry, threat of entry, bargaining power of buyers, bargaining power of suppliers and threat of substitutes. Apart from this analysis, there should also be a financial analysis to determine the profitability of the new segment. Hence in order to determine the attractiveness of any segment, we need to analyze the segment from a customer perspective, internal business perspective, innovation and learning perspective and financial perspective. Differences: Sustainable competitive advantage can be achieved either through overall cost leadership wherein a firm creates a low cost position in the market. This requires the firm to make its processes efficient to reduce costs. Or it can be achieved through product differentiation wherein the main focus of the firm is to create products or services that are valuable and unique. On the other hand, competitive advantage can also be created through a focus strategy wherein a firm focuses on niches segments or product lines and creates competitive advantage in those segments through cost leadership or product differentiation. So the main difference in these cases lie in the strategy adopted by the various firms to create competitive advantage. While Easy Jet was a low cost airline and hence its business model focused on providing low cost airlines service to the customers. Apple focused on the niche segment of highly technological products and attained a competitive edge through product differentiation. On the other hand, Levis attained competitive advantage by venturing into the new market of personalized jeans. Are there any patterns in the occurrences of events, causes or consequences that I have seen within or across the situations? Firms enter a segment and attain competitive edge through product differentiation, overall cost leadership or focus strategy, but once the segment becomes profitable, more and more competitors enter that segment. So whenever firms attain sufficient market share in a particular market segment, they try to implement the same business model in other segments. Just like Easy Jet after successfully implementing its low cost business model based on yield management tried to implement the same model in car rental and other businesses. Similarly, Levis became the first mover in the personalized jeans segment in order to retain its market share and create value for its customers. Have I discovered any interrelations among the events, causes and consequences? All the events are driven by the need to continuously innovate and to sustain the market share of the company. Increasing competition in a particular market and change in customer preferences drives strategy. Hence strategy is dynamic. Innovation and flexibility is the need of the hour. After attaining market share in a particular segment, the

It deals with receiving. etc. storage and distribution of the various components of a product It deals with creating an effective shipping process for the quick delivery of products. sales and service These are the activities that are mainly concerned with adding value to a supply chain. Individual consumers have today become very price Levis “Personal Pair” Jeans  Levis should charge a premium price for the Personal Pair Jeans it has introduced  Levis should go ahead with . Apple operates in a very niche market by selling high end technology solutions at a very premium price. It includes inbound and outbound logistics. My illustrations of ten (or more) terms from articles and chapter readings Key Terms of the articles Value-chain Analysis My Illustrations It is the strategic analysis of the value creating activities of an organization It is the sequential set of activities of value chain that incorporates all the steps from the production of a product or service. the sale of the product. internal factors. costly to imitate. within firms or between firms As customers are the most important stakeholders in any value chain. the “Prosumer” concept deals with integrating customers into the value chain Perspective that the competitive advantage of the firm is due to the endowment of valuable. It includes the technology of procurement. information. storage and the distribution of the final product or service to the customers It is the collaborative and strategic exchange of people.Anushri Vishwakarma PGP29381 The strategy-circus reflection sheet firms try to maintain their sustainable competitive advantage and at the same time venture into new markets to maintain returns while reducing risk. innovation and financial perspective while evaluating a firm’s performance Primary Activities Secondary Activities Inbound Logistics Outbound Logistics Interrelationships “Prosumer” Concept Resource Based View of the firm(RBV) Causal Ambiguity Balanced Scorecard My Decisions and My Analysis Specific Decisions Taken by me Easy Jet  Easy Jet should be made a public company  Easy Jet should continue to offer its services through internet  Apple Inc. Formulation of strategy needs a careful analysis of the market from not only the perspective of competition but also the impact on the balance sheet of the company. operations. technology. marketing. service after the sale of the product. management of human resources and general administration It mainly deals with the location of various distribution facilities in order to minimize the shipping times. rare and costly to substitute strategic resources A characteristic of the resources of a firm that is costly to imitate because a competitor is unaware of the resource or the process to re-create it A method evaluation that considers the customer’s perspective. Hence it deals with the collection. capital.

cyber café. Apple should maintain a balance between Mack book sales and its Non-Macintosh Business Apple is known for its technological innovations and its cutting edge technology. Apple should try to reduce the costs so that its cost could come down. I have developed a six step process to analyze any case: determination of the vision/goal  various strategic decisions and formulation of a strategy  implementation of the strategydetermination of new segments for entryanalysis of the new sectorcreation of value In the process there are several questions that need to be addressed.Anushri Vishwakarma PGP29381 The strategy-circus reflection sheet sensitive and hence do not prefer Apple products. Hence Apple should continue to invest in R&D to continue its technological innovations Apple should focus on increasing the compatibility of its Mac books with other software applications.   Easy Jet should stick to its business model of offering no business class Easy Jet should currently concentrate on its airline business and in the long term should venture into business of rental cars. This is what justifies its premium price.  mass customization and the partnership with CCTC to produce “Personal Pair” jeans Levis should go ahead with mass customization and the partnership with CCTC to produce “Personal Pair” jeans Levis should also maintain its traditional jeans business in order not to lose its price sensitive customers who might not agree to pay extra price for a customized pair of jeans     My abstractions from this course Augmented frameworks/ new checklist of questions developed/concepts challenged? Based on the learnings from the various cases. etc. which are as follows: 1) What business is the firm in? 2) An analysis of the external and internal environment of the firm 3) What are the strength and weaknesses of the firm? 4) What are the various activities/resources/processes at firm that provides the firm a competitive advantage over others? 5) What are the future goals/ vision of the firm? 6) Is the vision feasible? 7) What are the various strategic choices available to the firm? 8) What are the various tradeoffs involved in each decision? .

bargaining power of suppliers. etc. biases.? 10) Is there a need to set-up an in-house facility or to outsource the work? 11) What are the implications of various decisions? 12) Apart from a rational perspective.Anushri Vishwakarma PGP29381 The strategy-circus reflection sheet 9) Whether there is a need for product development/ market development/ diversification etc. bargaining power of customers and threat of substitutes in the new segment? 17) What is the impact on the balance sheet of the firm after entering into the new segment? How this course so far has changed/developed me (my thinking process. the various factors to analyze and how to make a strategic choice.) This course has provided an understanding of how to go about analyzing a strategy case. is there an emotional perspective of things? 13) How to mitigate the risks in each strategic decision? 14) Whether to pursue a differentiation. . world view. Even for the entry of the firm into new sectors. attitudes. threat of new entrants. It has helped me to understand that both the microscopic and macroscopic views are needed to understand the complete picture. a complete analysis is needed to understand the profitability of that segment. habits. This course has taught me how to assume the role of the decision maker and analyze the case from his/her perspective. cost leadership or focus strategy to deliver value? 15) What are the new segments that the firm can venture into? 16) What is the threat of rivalry.