What is a negative effect of strategy driven by competition?Slide 2Slide 3Slide 4Slide 5Slide 6Slide 7Slide 8Slide 9Slide 10Slide 11Slide 12Slide 13Slide 14Slide 15Slide 16Slide 17Slide 18What is a negative effect of strategy driven by competition?•Imitative, not innovative, approaches to the market.•Companies act reactively.•A company’s understanding of emerging mass markets & changing customer demands becomes hazy.What stimulates the demand side of the economy, expands existing markets and creates new markets? A “First Best” strategy.Is value innovationthe same as value creationor technology innovation?No!What is one of the two questions that companies must ask to value innovate?1) Are we offering customers radically superior value?2) Is our price level accessible to the mass of buyers in our target market?What is a consequence of transition from a production to a knowledge economy?It creates potential for increasing returns.(or)It creates potential for free-riding.What kind of good can be used by one company preventing its use by another company? A rival good .What concept is a function of both the nature of the good and the legal system?Exc ludability.Setting high prices.Limiting access.Initially engaging in price skimming to earn a premium.Later focusing on lower price and costs to maintain market share and discourage imitators.What is one of the conventional practices of technology innovators?Which two concepts lead to high volume, brand reputation, attractive profit margins, and a strong cost structure?Strategic Pricing and Target Costing.What is one of the basic building blocks of strategy?CompetitionCustomersCorporate CapabilitiesFollowing rules, regulations, and acceptable standards (and without going beyond the call of duty) is called what?Compulsory Cooperation.What is one of the principles of fair process?Engaging people.Explaining final decisions.Establishing clear expectations.Thank
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