【正文】 Power because well differentiated products reduce customer sensitivity to price increases Effective Differentiators can remain profitable even when the Five Forces appear unattractive Can fend off New Entrants because: New products must surpass proven products * Or be equal to performance at lower prices * Brand loyalty overes much price petition Ch438 Customers may decide that the cost of “uniqueness” is too great The means of uniqueness may no longer be valued by customers Competitors may learn how to imitate Value Chain Major Risks of a Differentiation Business Level Strategy Ch439 Breadth of Competitive Scope Source of Competitive Advantage Broad Target Market Narrow Target Market Cost Cost Leadership Differen tiation Uniqueness Generic Business Level Strategies Ch440 Breadth of Competitive Scope Source of Competitive Advantage Broad Target Market Narrow Target Market Cost Cost Leadership Differen tiation Focused Differen tiation Focused Low Cost Uniqueness Generic Business Level Strategies Ch441 Focused Business Level Strategies involve the same basic approach as Broad Market Strategies. However, opportunities may exist because: Focused Business Level Strategies Large firms may overlook small niches Firm may lack resources to pete industrywide May be able to serve a narrow market segment more effectively than industrywide petitors Focus can allow you to direct resources to certain value chain activities to build petitive advantage Ch442 Bang Olufsen Upscale electronic ponents Iams Company Premium pet foods Snapon tools High quality mechanics’ tools Focused Business Level Strategies Focused Business Level Strategies involve the same basic approach as Broad Market Strategies. However, opportunities may exist because: Examples: May be able to retrofit old factories to keep costs down Minimize RD costs by copying innovators Ch443 Custom manufacturers of parts for HarleyDavidson motorcycles Focused Business Level Strategies Focused Business Level Strategies involve the same basic approach as Broad Market Strategies. However, opportunities may exist because: Example: Focused Differentiators may thrive by selecting a small market that is underserved by large players Ch444 Firm may be “outfocused” by petitors Large petitor may set its sights on your niche market Preferences of niche market may change to match those of broad market Major Risks Involved With a Focused Differentiation Business Level Strategy Ch445 Breadth of Competitive Scope Source of Competitive Advantage Broad Target Market Narrow Target Market Cost Cost Leadership Differen tiation Generic Business Level Strategies Focused Differen tiation Focused Low Cost Integrated Low Cost/ Differentiation Uniqueness Ch446 Firms using an Integrated Strategy may: Integrated Low Cost/Differentiation Strategy Utilize Flexible Manufacturing Systems to create differentiated products at low costs Adapt more quickly Learn new skills and technologies Leverage core petencies through Information Networks across multiple business units Utilize Total Quality Management (TQM) to create high quality differentiated products which simultaneously driving down costs Ch447 Recognize that the Integrated Low Cost/ Differentiation business level strategy involves a Compromise The risk is that the firm may bee “Stuck in the Middle” lacking a strong mitment to or expertise with either type of generic strategy Integrated Low Cost/Differentiation Strategy Ch448 Southwest Airlines Integrated Low Cost/Differentiation Strategy Use a single aircraft model (Boeing 737) Use secondary airports Fly short routes 15 minute turnaround time No meals No reserved seats No travel agent reservations Low Cost Focus on customer satisfaction New flight services for business travelers (phones and faxes) High level of employee dedication Differentiation Ch449 演講完畢，謝謝觀看！