INNOVTE NOTES

Chapter 5: Timing of Entry

- Concept of Timing (how do you schedule yourself)
- We have different concepts of timing and there is no absolute way of defining it but we
have
- Efficient Market Hypothesis = there is data acailable; it is up to us to capture information;
infromation is available for us
- Knowledge is power because of the information countries give us by outsourcing
- Timing is relative to where the kndustry is at today (porter’s five forces—compettiive
advantage, strengths, resources and capabilities)— we need to understand if there is a
gap, a need, are wecapable?
- Increasing return suggests that timing of entry can be very important
- There are a number of advantages and disadvantages to being a first mover, early
follower it late entrant. These catergories are efined as dollows
- First movers are the first entrants to sell ina new product or service category
(“pioneers”)
- Advtantages: brand loyalty and trchnological leadership
- Disadvantages: enables you to take advtange of the learning curve at less
the cost
- Early followers are…Mo

Chapter 6: Strategy Formulation

- Appraising the firm’s environment (for strategy
- PESTLE Analysis - it analyzes the macro environment—it surfaces opportunities
and threats (in general; not specific to the business)
- Political
- Economic
- Social
- Technological
- Environmental
- Legal
- Porter’s 5 Forces - it gives a picture on the industry; discuss the industry itself
(macroenvironment)
- Threat of Potential New Entrants
- Threat of Substitutes
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Degree of Existing Rivalry (role of complements) - it adds value to the
existing product for competitive advantage
- Industry and competitor analysis based on 5 competing forces
- Collective strength of the five forces determines potential for earning
attractive points
- If the environemnt is conducive for us to invest in
- NOTE: you have ti define the need first and give basis on that need
 - Based on Industry classification (industry standard classification for
Philippines)
- It is normal to go as generic and broad which is more complex but
id we specify, then analysis becomes smaller
- Once we identify the industry, we need to identify competitors
(types of players and copetitors of an org: direct, indirect, and
substitute or alternatives).
- Direct competitors = companies that provide or fulfill the
needs of the market (
- Indirect competitors =
- Substitutes or alternatives =
- STEPS
- Identify the forces
- Evaluate the forces (instensity is low, medium or high)
- Determine whether the competitive forces makes the industry
attractive
- The intensity of Competitive Rivalry
- What causes rivalry to be stronger?
- Research on competitors and identify the direct, indirect
and alternatives or substitutes
- The competitor analysis matrix shows gaps
- Stakeholder’s Analysis -
- NOTE: SWOT and TOWS is not part of appraising the firm’s environment
because the opportunities and threats are dependent on the analysis of Porter's
5 Forces and PESTLE Analysis (which measures the general environment that
affects all industries). They are dependent on the firm’s environment.
- While the strengths and weaknesses are based on stakeholders analysis and
value chain analysis
- Value chain analysis and stakeholders analysis are used to assess a company’s
strengths and weaknesses because of resources and capabilities
- It is called value chain because of competitive advantage
- Unique selling proposition / value proposition
-
- Strengths and weaknesses refer to resources and capabilities—internal (what
they are capable of doing to compete in the industry).
- Opportunities and threats capture external environment
- Conducting SWOT analysis, we should also conduct other models of analysis so
that there will be a basis
- Appraising the firm's strength and weakness, competitive advantage and core
competencies
-
- Articulating an ambitious strategic intent

Chapter 8: Collaboration Strategies

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