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Dynamic Capabilities & Strategic Management
Through a Case
GDR versus Kodak - Bart Film Scanner
Order of Going
Introduction -Models of Strategy
Emphasizing the Exploitation of Market Power ( Competitive Forces Model & Strategic Conflict Model) Emphasizing Efficiency (Resource-Based Perspective Model & Dynamic Capabilities Approach)
Towards a Dynamic Capabilities Framework
Markets and Strategic Capabilities Processes, Positions & Paths Replicability & Imitatability Processes and Positions of Organizational
Case Study – (GDR versus Kodak - Bart Film Scanner)
Facts, Problems & Analysis of Dynamic Capabilities
Conclusion & Discussions
Resource-Based And an emerging new paradigm –„dynamic capabilities‟ . Positions.Processes.Replicability and Imitatability of Organisational Processes and Positions Are they interrelated –complementary or competitive? Future directions? .Introduction Introduce three existing paradigms .Competitive Forces . and Paths .Strategic Conflict .
Development of Strategy Theory Pay attention to Outer-Creating Theory 1 2 Inner-Creating Theory Competence-Based Theory Resource-Based Theory Competence-Based Theory Core Competence Competitiveness advantages Dynamic Capabilities The Development of Strategy Theory .
paths Asset accumulation.Comparison Paradigm Competitive forces Units of Focal concern analysis Industries. products & competitor positioning Strategic conflict Resource based perspective Dynamic capabilities perspective Firms. products Resources Strategic interactions Assets & capabilities Process positions. Replicability & Imitability . Structural conditions firms.
Assumption Firms can achieve and sustain competitive advantage by developing the dynamic capabilities approach to address rapidly changing environments.Dynamic Capabilities and Strategic Management Purpose To provide a coherent framework which can both integrate existing conceptual and empirical knowledge and facilitate prescription. .
Dynamic Capabilities the capacity to renew competences Dynamic Capabilities the key role of strategic management to match the requirements of a changing environment •The term capabilities emphasizes the key role of strategic management in appropriately adapting. integrating.What is Dynamic Capabilities? •The term dynamic refers to the capacity to renew competences so as to achieve congruence with the changing business environment. and reconfiguring internal and external organizational skills resources and functional competencies to match the requirements of a changing environment .
Definition •The term dynamic capabilities refers to the firm‟s ability to integrate. •It reflect an organization‟s ability to achieve new and innovative forms of competitive advantage given path dependencies and market positions. and reconfigure internal and external competences to address rapidly changing environment. . build.
customer base. external relations) Strategic alternatives (presence or absence of increasing returns and attendant path dependencies) Processess Positions Dynamic Capabilities Paths .The Dynamic Capabilities Framework The way things are done (routines. IP. complementary assets. patterns of practice and learning) Current specific endowments (technology.
Processes Coordination/ Integration Learning Reconfiguration/ Transformation Organizational processes .
Position Financial Complementary Reputational Institutional Technological Specific assets Market Position .
Path Technological opportunities A firm‟s current position is often shaped by the path. Path dependencies . And the recognition of such opportunities is affected by the organizational structures that link the institutions engaging in basic research to the business enterprise. Technological opportunities are often fed by innovative activity itself. And a firm‟s previous investments and its repertoire of routines (its history) constrain its future behavior.
Summing .Dynamic Capability.
processess are easier to protect A firm need not expose its processes in order to exploit them . imitation by others is definitely harder Factors that make replication difficult also make imitation difficult Reverse engineering can be used to assault a product.Replicability & Imitatability of Processes and Positions To sustain competitive advantage competencies must be difficult to copy. the firm‟s Imitation If self-replication is difficult.
especially to other countries or product lines. Emulation Emulation occurs when firms discover alternative ways of achieving the same functionality In hypercompetitive markets there is little a firm can do to protect itself from emulators other than to expect and plan for their assault . let alone its competitors.Replicability & Imitatability of Processes and Positions Replication Often even the firm. cannot fully understand the reasons for its distinctive advantage This makes it hard to expand operations.
Dynamic Capabilities & Strategic Management Case On GDR versus Kodak .Bart Film Scanner .
light boxes.Global company with productions facilities in US. Europe and China Developed – film product.GDR .Brief History Julie Georginelli – Founder of GDR GDR. processing equipment. film dispensers and scanners for dentist High margin films products and Georginelli vision resulted constant experimentation with new imaging methods .
the spirit that led the company to past success has been removed from the organization.Evolution of GDR Georginelli Dental Research has transitioned from an agile entrepreneurial company to one that has become overly cautious as its high-margin film sales have eroded. Even though the phases-and-gates process in place at GDR provides guidance to projects. . The two main characters of the case want to bring back that 'can do' spirit as they attempt to rapidly commercialize the Bart scanner and extend the life of film.
Pending demise of film ◦ Lost zeal ◦ Over analyze programs ◦ Slow moving ◦ Over cautious entity ◦ BART. Low cost scanner turned film into digital images ◦ Angelo Bella .Scanner market Digital advances .
Product Development Phases Product development ◦ Product concept ◦ Technical feasibility ◦ Product design ◦ Testing ◦ Production ◦ Discontinuance ◦ Gate review – Joseph Namath ◦ Current manage for cash strategy .
Prototype can be developed by modifying existing products and have it ready within three months • Sole risk of BT . but another member of the BART team • Namath – GDR and DIS partnership? • BT.Case Facts • • • • • DIS Dental imaging Sytems Taiwan – Lynn Tseng Low cost scanner Extreme cost pressure of BART DIS – Unknown BT Wang.DIS President – Not distant OEM.
the culture or DNA of a partner is just as important. The case also brings out aspects of Managing new product commercialization Managing technology and innovation Strategic thinking International business and leadership courses . (most think in terms of technical skills. however.Facts from the case The case is intended to concentrate on the ways individuals might overcome Internal company resistance Roadblocks by partnering with an OEM partner that possesses complementary capabilities. Terms while seeking a strategic partner.
shareholders and employees. . 3) The role people can play in 'pushing through' corporate processes and culture to improve time-tomarket.The issues in the case concern 1) Entrepreneurial companies and their business strategies and processes for managing new product development. 2) The implications these strategies and processes have on addressing the needs of customers.
. Shift in balance of Power. Shift in Focus of control.Conclusion The three main Changes Shift in Locus of Control.
Emphasizing on the internal processes that a firm utilizes and how they are deployed and how they will evolve. they must be built. Distinctive competence is generally cannot be acquired.Conclusion Entry decisions must be made with reference to The competences and capabilities which entrants have. . The competitive advantage is stemming from highperformance routines operating “inside the firm”. new Identifying likely entrants and their timing of entry. relative to the competition. shaped by processes and positions.
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