Strategic Management
4th Edition
ISBN: 9781259927621
Author: Frank T. Rothaermel The Nancy and Russell McDonough Chair; Professor of Strategy and Sloan Industry Studies Fellow
Publisher: McGraw-Hill Education
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Question
Chapter 8, Problem 2DQ
Summary Introduction
To explain: The ways by which a firm can have competitive advantage through related diversification.
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- Kourdi (2009:3) has defined business strategy as a “plan, choice or decision used to guide a company to greater profitability and success.” Required Explain how the following strategies facilitate the achievement of success or profitability: Outsourcing Diversification Market Focus Market developmentarrow_forwardIdentify two current organizations—one organization facing a low-risk competitive environment and one facing a high-risk competitive environment. For each of these organizations, explain why you have evaluated its competitive environment as either low risk or high risk, using strategic planning and analysis concepts (such as Porter's Five Forces Model) For each of these organizations, recommend a pairing of a system design tool and a system operation tool that you believe will work especially well in the competitive environment faced by the organization. Be sure to explain why the tools you have chosen are uniquely suited to the competitive environment faced by that organization.arrow_forwardWhat is diversification strategy? What are the Pros and Cons of this method?arrow_forward
- Describe why your company needs to diversify. What problem will diversifying the company solve? What kinds of quantitative and qualitative data will you target in your research on the current auto industry and the new industry?arrow_forwardBriefly discuss when it makes good strategic sense for a company to consider diversification.arrow_forwardManagement ,CRITICALLY dISCUSS how diversification fits into an organization's overall strategic planning process.arrow_forward
- STC, in partnership with Nokia (a leading 5G technology provider), has developed a new technology to increase the range of its 5G network coverage. This means STC needs fewer 5G towers to reach the same number of customers as competitors. What business-level strategy is most appropriate to profit from this technology? Justify your choicearrow_forwardwhat type of corporate diversification strategy should a coffee shop business adapt?arrow_forwardHow do the five competitive forces in Porter’s five forces model affect the average profitability of the industry? For example, in what way might weak forces increase industry profits, and in what way do strong forces reduce industry profits? Identify an industry in which many of the competitors seem to be having financial performance problems. Which of the five forces seem to be strongest?arrow_forward
- Explain what a company's highest priority should be when creating a competitive advantage? What is an example of a competitive advantage that created by using information technology? In your opinion, what are the ethical consideration when using technology to create a competitive advantage?arrow_forwardBelow are businesses and a series of questions. Please help me fill in the table. You will have to use the answers to the questions to figure out which market type each business fits into. Below are the potential answers to questions 3 through 9 on the table.: POTENTIAL ANSWERS 3. Size of Market Global, National, Regional, Local 4. Number of Buyers Many or Few 5. Number of Sellers Many, Few or One 6. Product Type Identical, Differentiated, Unique 7. Barriers to Entry High, Medium or Low 8. If high, why? Control Over Resources, Economies of Being Established, Economies of Scale, Legal Barriers (patents, licenses, ect.), Required Scale for Innovation, Economies of Platform 9. Market Type Perfect Competition, Monopolistic Competition, Oligopoly, Monopoly Here's an Example Table Below: 1. Business Bank of America 2. Industry Banking 3. Size of Market National 4. Number of Buyers Many 5. Number of Sellers…arrow_forwardWhirlpool Corporation has 59 manufacturing and technology centers around the world and sales in some 170 countries. Senior management has a vision of Whirlpool appliances in “Every Home . . . Everywhere with Pride, Passion, andPerformance.” Discuss Whirlpool’s two reasons why they have formulated a diversification strategy. Analyse Whirlpool’s products and apply the BCG matrix . Answer this question in 400 wordsarrow_forward
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