SIXTH WEEK – STRATEGIC MANAGEMENT

Bismillahirrahmanirrahim,
Assalamualaikum, this week lecture we learnt about STRENGTHENING A COMPANY’S COMPETITIVE POSITION: STRATEGIC MOVES, TIMING, AND SCOPE OF OPERATIONS.

BLUE-OCEAN STRATEGY

• offers growth in revenues and profits by discovering or inventing new industry segments that create altogether new demand.

- Because of first-mover advantages and disadvantages, competitive advantage can spring from when a move is made as well as from what move is made.

HORIZONTAL SCOPE

• the range of products and service segments that a firm serves within its focal market.

VERTICAL SCOPE

• 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.

VERTICALLY INTEGRATED FIRM

• one that performs value chain activities along more than one stage of an industry's value chain system.

BACKWARD INTEGRATION

• involves entry into activities previously performed by suppliers or other enterprises positioned along earlier stages of the industry value chain system.

FORWARD INTEGRATION

• involves entry into value chain system activities closer to the end user.

OUTSOURCING

• involves contracting out certain value chain activities to outside vendors. 

STRATEGIC ALLIANCE

• a formal agreement between two or more separate companies in which they agree to work cooperatively toward some common objective.

JOINT VENTURE

• a partnership involving the establishment of an independent corporate entity that the partners own and control jointly sharing in its revenues and expenses.

                                                    

                                                  TQ :)