Professional Documents
Culture Documents
Modellen PDF
Modellen PDF
Basic formulation for a good strategy starts with the Strategy Diamond by refining the
elements of the strategy. To integrate the strategy intended you should be able to
answer all questions of the 5 elements:
Arenas are the areas in which a firm will be active. Hereby we focus on which
product categories, channels, market segments, geographic areas, core technologies
and value-creation strategies?
Vehicles are the ways of getting to the arenas a firm intended. Here it makes sense
to look at internal development, possible joint ventures, licensing, alliances and
acquisitions.
Differentiators are the ways of being better and more appealing than rivals
(competitive advantage) by differentiating features of the product like image,
customization, price, styling, product reliability and speed to market. These
decissions are important, should be made early and are sometimes at the cost of
certain trade-offs.
Economic Logic are the means by which a firm will earn a profit, by different
versions of using low cost production or premium prices.
2) SWOT analysis
The SWOT analysis is an internal and external based view of a firm and its
surroundings. It looks at the different Strenghts, Weaknesses, Opportunities and
Threats of a firm. In this model the Strenghts and the Opportunities are inextrectibly
linked with each other for a strenght is of no use without the opportunity. Same goes
for Weaknesses and Threats as a weakness is only of real danger when there is a
certain threat.
3) VRINE analysis
The VRINE model can be used to detect wheter a resource, capability or alliance
can be used to gain competitive advantage. When a resource or capability is deemed
useful for a competitive advantage, the firm can see by VRINE wheter or not is is
sustainable.
VRINE works differently for alliances. When used for alliance comparison one must
look at the following questions:
Rivals can figure out what generates the returns but do not possess those
resources
Rivals cannot access potential partners resources because they are indivisible
4) PESTEL analysis
Supplier Power: the degree of which suppliers are able to bargain for higher prices
at the cost of a firms profit. With few suppliers, degree of supplier power is higher.
Factors include:
- Supplier concentration
- Threat of forward integration
- Cost relative to total purchases
- Importance of volume to supplier
Degree of Rivalry: pretty straight forward title. Higher degree of rivalry results in
lower profits and possible price-wars in which companies both lower their prices to
attract consumers but at the cost of lower profits overall. Factors:
- Exit Barriers
- Industry concentration
- Industry growth
- Switching cost
- Product difference
- Diversity of rivals
Buyer Power: opposite of supplier power. Degree in which consumers are able to
influence prices to their benefit, in addition to the lower profits of a firm. Factors:
- Buyer concentration
- Importance of volume to customer
- Presence of substitute inputs
- Threat of backward integration
- Differentiaton of inputs
Threat of substitutes: degree in which other products are able to substitute your
product. A higher degree of substitutes means the cost of your product should not be
too high, otherwise consumers would switch to the substitute. Factors include:
- Switching costs
- Buyer inclination to substitute
- Price-performance tradeoff
- Variety of substitutes
- Necessity of product/service
Complementors: a little sub-force which boosts the profits of a product, whereas the
other 5 forces will only be of negative effect for the companys buisiness.
Complementers complement your product, simply by being related to usage of
another product. (Iphone+Bose). A few factors include:
- Number of complementors (of course)
- Relative value added
- Barriers to complement entry
- Buyer perception of complement
- Complement exclusivity
(When choosing an alliance partner, a firm can look at the Five Forces. Any
participant of one of the forces is a good possible alliance partner!)
- Zoek bij de casus het bijpassende model op, behorende bij de kernwoorden
van elk model en vermeld welk model je gebruikt!
- Kijk naar de plus punten en min punten van de onderdelen van een bepaald
model.
- Noem en beargumenteer de punten en weerleg ze indien nodig
- Schrijf een duidelijke conclusie waarin het totaalbeeld naar voren komt (noem
geen nieuwe argumenten in de conclusie).