introudction to strategy
(Chapter 2)
defination
what
how (process)
why high competition
decision making, create and
implement to reach goals
1. scan environment
(chapter 3)
2. formuate (develop)
we need to creative strategy
to obtain competitive
advantrue in order to gain
suprior profit than
competitors
2 models to develop strategy
(choose1)
Industrial model (I/O)
resource based (RBV)
focus outside in (source of
competitive advantage are
from external factors)
focus inside out (source of
competitive advantage are
from internal factors)
give direction to company -
where to go and how to go
long-term
1. scan external
environment
2. found the attractive
busiess (industry) to invest
in
how
3. create strategy
4. look inside for resource
and skill if we can do that
strategy
5. implement strategy
how
2. look for capability that is
strength
3. competitive advantage
analysis - VRIO tools
4. found attractive business
to invest in
1. look inside for resource
that is strength
5. develop and implement
strategy
External envi
Internal envi
Summary
Macro
Micro
general factors outside
company that can affect
either positive or negative,
directly or indirectly to all
key players.
PESTEL anlysis how
what
what
industry factors outside
company that can affect
either positive or negative
directly to the company.
5 forces model anlysis how
Political factors
Economic factors
Social factors
Techonological factors
Environmental factors
Legal factros
1. level of exiting
competition
2. level of threat of new
entrants
3. level of threat of subtitues
(indirect competitors)
4. level of bargaining power
of buyers
5. level of bargaining power
of suppliers
If there is high threat, it
means the company can
gain less profit.
what
how
if buyers or suppliers have
high power of bargaining
than you, it means you can
gain less profit.