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Strategic Management for Eco Entrepreneurs

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Strategic Management for Eco Entrepreneurs Terms: Strategic competitiveness Competitive advantage earned through a value creating and capturing strategy. – PowerPoint PPT presentation

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Title: Strategic Management for Eco Entrepreneurs


1
Strategic Management for Eco Entrepreneurs
  • Terms
  • Strategic competitivenessCompetitive advantage
    earned through a value creating and capturing
    strategy.
  • Strategyintegrated and coordinated set of
    commitments and actions to achieve competitive
    advantage.
  • Competitive Advantageposition vis a vis
    competitors that allows the organization to earn
    above normal rates of return (ROS, ROA, ROI) at a
    point in time. Not permanent.
  • How is competitive advantage achieved?
  • Strategic use of resources and capabilities to
    achieve core competencies and to exploit them.
  • Resources are the firms critical inputslabor,
    management and other human capital physical
    capital funding IP location culture. Some of
    these are easily competed away. Others are not.
    Focus on the latter. Why? Consider key location
    or individualsstars. What are the competitive
    advantage implications?

2
Strategic Management for Eco Entrepreneurs
  • Capabilitiesdirecting those resources toward
    achieving a competitive advantage.
  • Core competenciesthose resources that advantage
    the firm relative to its competitors. (key IP,
    key people, key leadership, key culture, key
    location).
  • Vision a short statement that communicates the
    organizations value, to whom, and why.
  • Mission Statementa more lengthy statement about
    the organizations value creation, to whom (the
    clients), why (its core capabilities), and how
    (what it provides).

3
Strategic Management for Eco Entrepreneurs
  • Stakeholdersthose centrally affected by the
    organizationcustomers investors input
    suppliers (contractors, other) labor
    management communities. Interests may conflict.
    How to manage them.
  • Strategic leaderssenior management who formulate
    the vision, mission, and competitive strategies,
    and monitor that they are carried out.

4
Strategic Management for Eco Entrepreneurs
  • Achieving competitive advantage.
  • Industry analysis
  • Identify the market. (what is the market?
    Segmented?) Who are the major competitors?
  • What are their key advantages? Weaknesses? What
    opportunities? Threats? SWOT analysis.
  • Once the industry has been identified, then
    analyze the 5 major competitive factors
  • New entrants
  • Supplier power
  • Buyer power
  • Substitutes, switching costs
  • Rivalry
  • Each of these will affect your ability to achieve
    competitive advantage. Value can be competed
    away.

5
Strategic Management for Eco Entrepreneurs
  • Rememberit is not enough to organize a venture
    that provides environmental benefits.
  • If another organization can capture that value,
    it reduces incentives to promote and invest in
    it.
  • Why?
  • The external environment
  • Broadly and how it impacts your industry and
    target market.
  • Industry characteristics, size of competitors,
    tech change, growth.
  • Demographicsage, location, ethnicity, size,
    income
  • Macro economicsinterest rates, employment,
    exchange rates, GDP growth
  • Political/legal
  • Technological change
  • Cultural
  • Global

6
Strategic Management for Eco Entrepreneurs
  • Barriers to Entryessential for competitive
    advantage.
  • Economies of scale, capital requirements
  • Product/service differentiation (what does this
    mean?)
  • First leaderreputation, information (downsides?)
  • High switching costs
  • Distribution access
  • Government policy
  • IP
  • Other core competencies

7
Strategic Management for Eco Entrepreneurs
  • For Monday, February 25, each team must hand in
    and present their competitor analysis and their
    target market definition.
  • Industry definition
  • List of competitors, analysis of 5 key
    competitive factors
  • Characteristics of the target market location,
    income, age, ethnicity, education.
  • Identify how you would contact them.
  • For Wednesday, February 20, each team must
  • Provide vision and mission statements
  • A statement as to how you might achieve a
    competitive advantagebarriers to entry for your
    venture.
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