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    Presentation Lecture 4 Functional Level Strategies

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    sadif sayeed
    This lecture covered four building blocks of competitive advantage: efficiency, quality, innovation, and customer responsiveness. Specific strategies for each were discussed, including economies of scale, learning effects, and mass customization for efficiency; reliability, excellence, and Six Sigma for quality; integrating marketing and R&D to reduce innovation failures; and customization and rapid response for customers. The takeaways were the four blocks and strategies for achieving superiority in each.

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    Presentation Lecture 4 Functional Level Strategies

    Uploaded by

    sadif sayeed
    34 views14 pages
    This lecture covered four building blocks of competitive advantage: efficiency, quality, innovation, and customer responsiveness. Specific strategies for each were discussed, including economies of scale, learning effects, and mass customization for efficiency; reliability, excellence, and Six Sigma for quality; integrating marketing and R&D to reduce innovation failures; and customization and rapid response for customers. The takeaways were the four blocks and strategies for achieving superiority in each.

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    This lecture covered four building blocks of competitive advantage: efficiency, quality, innovation, and customer responsiveness. Specific strategies for each were discussed, including economies of scale, learning effects, and mass customization for efficiency; reliability, excellence, and Six Sigma for quality; integrating marketing and R&D to reduce innovation failures; and customization and rapid response for customers. The takeaways were the four blocks and strategies for achieving superiority in each.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    34 views14 pages

    Presentation Lecture 4 Functional Level Strategies

    Uploaded by

    sadif sayeed
    This lecture covered four building blocks of competitive advantage: efficiency, quality, innovation, and customer responsiveness. Specific strategies for each were discussed, including economies of scale, learning effects, and mass customization for efficiency; reliability, excellence, and Six Sigma for quality; integrating marketing and R&D to reduce innovation failures; and customization and rapid response for customers. The takeaways were the four blocks and strategies for achieving superiority in each.

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    Lecture 3 Summary

    • Distinctive Competencies (resources and capabilities)


    • Profitability and Value Creation (profit margin, consumer
    reservation price, consumer surplus)
    • Building Blocks of Competitive Advantage (quality, innovation,
    efficiency, customer responsiveness)
    [Hill. 2013]

    Lecture 4
    Competitive Advantage through
    Functional-Level Strategies
    Overview of Lecture

    • Roots of Competitive Advantage


    • Achieving Superior Efficiency
    • Achieving Superior Quality
    • Achieving Superior Innovation
    • Achieving Superior Customer Responsiveness
    Block 1. Achieving Superior Efficiency

    • Economies of Scale
    • Diseconomies of Scale
    Block 1. Achieving Superior Efficiency

    • Learning Effect
    Block 1. Achieving Superior Efficiency

    • Flexible Product Technology (e.g. Ford)


    • Mass Customization (e.g. my M&M’s)
    Block 1. Achieving Superior Efficiency

    • Marketing (4Ps)
    • Customer Defection
    Acquiring vs Retaining
    Free Advertising via Loyalty
    Block 1. Achieving Superior Efficiency
    • Just-in-time Inventory
    • Supply Chain Management

    https://www.youtube.com/watch?v=Mi1QBxVjZAw
    Block 2. Achieving Superior Quality

    • Quality as Reliability
    • Quality as Excellence
    Block 2. Achieving Superior Quality

    • Attaining Reliability

    Six Sigma (black belts)


    Total Quality Management (TQM)

    1. Management should embrace the philosophy that mistakes, defects and poor-quality materials
    are not acceptable.
    2. Quality of supervision should be improved by allowing more time for supervisors to work with
    employees.
    3. Management should create an environment in which employees will not fear reporting problems
    or recommending improvements.
    4. Work standards should only be defined as numbers or quotas
    5. Achieving better quality requires the commitment of everyone in the company
    Block 2. Achieving Superior Quality

    • Attaining Excellence

    Marketing research to find important attributes (PC durability)


    Coordination between marketing and R&D teams to develop products
    Block 3. Achieving Superior Innovation
    High Failure Rates because of:
    • Unknown Demand
    • Poor Commercialization (e.g. Windows OS for smartphones)
    • Poor Marketing mix

    Reducing Innovation Failures by:


    • developing projects based on customer needs (agile development, minimum
    viable product)
    • preventing escalation of commitment on chosen projects
    • integrating marketing and R&D activities
    Block 4. Achieving Superior Customer
    Responsiveness

    • Demonstrating Leadership (mission statement)


    • Shaping Employee Attitudes (4 Seasons Hotel)
    • Customizing
    • Responding Time
    Lecture Takeaways

    • 4 Building Blocks of Competitive Advantage


    • Achieving Superior Efficiency (economies of scale, learning effect, flexible
    product technology, mass customization, JIT, customer defection
    • Achieving Superior Quality (reliability, excellence, six sigma, TQM)
    • Achieving Superior Innovation (high failure rates, reducing failures)
    • Achieving Superior Customer Responsiveness

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