STRENGTHENING A COMPANY’S COMPETITIVE POSITION

Chapter 6

Assalamualaikum everyone...for the next chapter I learn about Strengthening A Company's Competitive Position: Strategic Movie,Timing, And Scope Of Operations. 

Firstly, the strategic option  to improve a market position is strategic offensive principle. Strategic offensive principle is display a strong bias for swift, decisive, and overwhelming actions to overpower rivals.

Secondly is Blue-Ocean strategy, offers growth in revenues and profits by discovering or inventing new industry segments that create altogether new demand, which is divided into:

i. An existingAn existing market with boundaries and rules in which rival firms compete for advantag market with boundaries and rules in which rival firms compete for advantage.

ii. A “blue ocean” market space, where the industry has not yet taken shape, with no rivals and wide-open long-term growth and profit potential for a firm that can create demand for new types of products. 

e.g: 

Thirdly, horizontal scope is the range of product and service segments that a firm serves within its focal market. For horizontal scope have two:

i. Merger

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ii.Special Purpose Acquisition Company (SPAC)

In addition, vertical scope is the extent to which a firm’s internal activities encompass one, some, many, or all of the activities that make up an industry’s entire value chain system, ranging from raw-material production to final sales and service activities. Beside that, it is divided into two:

i. Backward integration : entry into activities previously performed by suppliers or other enterprises positioned along earlier stages of the industry value chain system

ii. Forward integration : entry into value chain system activities closer to the end user

Next, Outsourcing is contracting out certain value chain activities to outside vendors. Beside that, is about strategic alliance is a formal agreement between two or more separate companies in which they agree to work cooperatively toward some common objective. Lastly,  joint venture is a partnership involving the establishment of an independent corporate entity that the partners own and control jointly, sharing in its revenues and expenses.

                                                                   

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                         Wassalamualaikum...