Donald Hambrick and James Frederickson identify 5 elements that a successful strategy must have. One of these elements is differentiator.
Explain the five elements and illustrate your discussion with examples of successful companies from the world business.
Strategy is all about making important choices in a business. Donald Hambrick and James Fredrickson created the five elements of strategy as way to reveal what the bits and pieces of strategy are and how these elements fit together (Sourcesofinsight.com, 2017).
THE FIVE MAJOR ELEMENTS OF STRATEGY There are five main elements of strategy. They involve
• Arenas: Where will we be active? (Quilliam, 2016).
• Vehicle: How will we get there? (Quilliam, 2016).
• Differentiators: How will we win in the market place? (Quilliam, 2016).
• Staging: What will be our speed and sequences of moves? (Quilliam, 2016).
• Economic Logic: How will we obtain our returns? (Quilliam, 2016).
5 elements of strategy:
Arenas: when strategists are making vital decisions about a business, they look at where or in what arenas the business will be active (Quilliam, 2016). It is essential to take into account the firm’s products, services, distribution channels, market segments and geographic areas when making decisions about a business arenas (2012books.lardbucket.org, 2017). In addition, identifying arenas should be clear and specific (2012books.lardbucket.org, 2017). It clearly reveals to managers what the firm should do and what the
The total war strategy that was used by the North to defeat the south was known as the Anaconda Plan, by General Scott. The total war was an agenda that goes beyond pitched battles between armies, it attacks a whole national infrastructure, including towns, and villages. It started with a complete blockade of the Confederate coast, with the objective of preventing the export of cotton, and the import of munitions and other supplies. It was closed out by forces waging a burnt earth policy towards the south, destroying railroads, burning towns and crops in an attempt to cripple the south economically.
More automobiles were manufactured and bought by people that made their life much easier. However, the machinery was dangerous and laborers worked for unfair employers. “You are surrounded… with an infinite number of comforts and conveniences which had no existence two or three centuries ago and those comforts are not only used by a few, but are within the reach of almost all men. Every day is adding something to your comforts” (Document 9). Every day, new machines and devices were developed for the satisfaction of the people who used those contraptions.
Bark & Co. is a company founded by Matt Meeker, Henrik Werdelin and Carly Strife. The company owns several products – the initial and probably best known is ‘BarkBox’. Due to BarkBox’s success, the company Bark & Co. was created, which dedicates to build products that promote health and happiness of dogs everywhere (BarkShop, 2014). It was launched in December 2011 and had reached $25M in revenue by June 2013 with 100,000 subscribers (Fueled, 2013).
Like illustrated in Figure 2, Bark & Co. has different businesses: ‘BarkPost’ is a dog content website that has the capability of receiving over 400,000 visitors monthly, ‘BarkCare’ is a dog health mobile application that can be reached 24 hours 7 days a week for vet consultation service (D’Onfro,
• To check the physical resources and scope of technical alliances with arrival of VC.
• To detect more financial, technical, and industrial expertise prior to applying VC.
• To develop and implement accelerated market presence.
To define the strategic capabilities of Premier Inn, it is worth to mention its dependence on the macro-environment.
The firm is a multinational enterprise, with offices in 10 different countries and car stores in some 25 countries. Its main product line is the Tesla electric cars, currently consisting of three models: the Tesla Model S, Model X and Model 3. The Model 3 was launched in 2017 and is aimed at the lower spectrum of the EV market, whereas the model S and X are high-end cars serving the ‘premium’ segment.
In this essay, I will examine Tesla’s
A-Four support activities:
1- firm infrastructure and finance :
-Strong brand, product, marketplace solution, delivery and support. (brand value from 35$ in 1973 to 10.7 billion in 2014 ).
-Empowerment of top management –geographic structure.
-Low debt, short term debt 2.9 billion, and long term debt 1.1 billion. Cash in hand 2.2 billion.
It is expected that the performance of the company would further rise in the future in the automotive industry. However, the company is required to improve their net income in order to increase market share. (Figure 1)
Tesla Motors Company has a unique position in the car market which forms the company’s biggest strength. The unique position of Tesla Motors is revealed on the fact that the company not only sells cars but also sells new technologies. Basically, betting on Tesla Motors encompasses integration of a new technology.
However, since 2010, this longstanding quality reputation has been unabatingly shattered by increased vehicle recalls that have seen virtually every class of consumer affected (Rajasekera, 2). Recognizing that its reputation and brand is at stake, Toyota has endeavored to not only publicly apologize, but also settle a class-action law suits totaling $1.1 billion. While this strategy may look inept to many, research provide that leadership requires swift acknowledgement of mistakes and fitting solutions which is what Toyota has done. Going forward, Toyota will need to fully embrace innovation as its key strategy, especially given the fact that the current industry life cycle has overstayed its maturity, which means that most automakers will be looking to create new demand and create more innovative
As a brand Dacia must find ways to distinct itself from its competitors. For years, low cost cars were Dacia’s USP but now even big players like Volkswagen or Toyota are starting to offer products which are in direct competition with Dacia’s products. Dacia must embrace diversification, vertical and horizontal integration to stay
Question1 Explain the advantages and disadvantages of Henry Mintzberg’s prescriptive schools of strategy
Design school
The process of conception is using the major idea of SWOT which divided into two sides; internal (strength and weakness) and external (opportunity and threat) factors. Social responsibility and Managerial values also play a role in the formulation of the strategy. When the four factors is analyzed, the next step is creation of strategy which is suitable to organization and final stage is implementation follow by that strategy.
Advantages:
-Separate the step between design strategy and implementation clearly
The automotive industry is facing changes due to ecological impacts on the environment. Many automotive manufacturers such as BMW and Audi are now entering into the electric car industry where Tesla has established itself in. In this environment, there is a need for rapid innovation a firm 's capability to produce new technological products become crucial to survival in this industry. For this reason, human relations management will be beneficial to an organization as it allows creativity in employees who will be able to respond to changes in the environment efficiently and quickly which gives a company flexibility. " CEO Elon Musk created a master plan to compete with other automotive manufactures which were to Build sports car, use that money to develop an affordable car, use that capital to create more affordable vehicles, produce zero-emission electric vehicle power generation options (Tesla).
The conditions that the economy environment included, that is, the inflation, employment, monetary and fiscal policy… in a specific sector or region. The macro environment is closely linked to the general business cycle, as opposed to the performance of an individual business sector.
-Physical factors: municipalities growth, population go to the regions are more developed, so we have to considerer what are these areas to create there our business. Climatic diversity, Zara knows this diversity so the clothes that it produces will be linked with the climatic of the region, for example, the North is cold, so the winter´s season arrives before.
The four building blocks of competitive advantage can be used to help a company become more profitable and stay ahead of their competition. The four factors are superior efficiency, quality, innovation, customer responsiveness. All four building blocks are important to any company. However, I believe that customer responsiveness is the most important because having loyal and happy customers can make or break any company. The four building blocks can help companies grow and become the leader in their industry over their rivals.
