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Strategic Management and Strategic Competitiveness
Strategic Management and Strategic Competitiveness
Strategic Management and Strategic Competitiveness
Strategic Management
Competitiveness and Globalization:
PowerPoint Presentation by Charlie Cook
Concepts and Cases Seventh edition
The University of West Alabama
© 2007 Thomson/South-Western.
All rights reserved. Michael A. Hitt • R. Duane Ireland • Robert E. Hoskisson
KNOWLEDGE OBJECTIVES
The Strategic
Management
Process
Hypercompetition
A condition of rapidly escalating
competition based on:
• Price-quality positioning
Dynamic • Competition to create
Global Economy new know-how and
Rapid technological establish first-mover
change advantage
Strategic maneuvering
among global and innovative • Competition to protect or
combatants
invade established
product or geographic
markets
D
Dee
egg
these environments?
m
ll//LL
moo
Industry
Industry
iccaa
ggrr
Environment
Environment 2. Firm develops internal
lliitti
aapp
hhiic skills required by
PPoo
c
external environment—
SSoo
iicc
Competitor
cciio
Environment
Environment
ulltt
Technological
Technological
Environment
Attractive industry:
One whose structural
characteristics suggest
above-average returns.
Attractive Industry
Attractive Industry
Strategy Formulation
Attractive Industry
Strategy Formulation
Attractive Industry
Strategy Formulation
Strategy Implementation
Superior Returns
The Resource-
Based Model of
Above-Average
Returns
Environment
Environment
Resources
2. Determine the firm’s
Capability capabilities—what it can do
better than its competitors.
Capability: capacity of an
integrated set of resources to
integratively perform a task or
activity.
Resources
Capability
3. Determine the potential of
Competitive Advantage the firm’s resources and
capabilities in terms of a
Competitive advantage:
competitive advantage.
ability of a firm to
outperform its rivals.
Resources
Capability
Competitive Advantage
Resources
Capability
Competitive Advantage
Attractive Industry
Resources
Capability
Competitive Advantage
Attractive Industry
Strategy Formulation
and Implementation
Superior Returns
Valuable
Valuable Rare
Rare
Core
Core
Competencies
Competencies
Nonsubstitutable
Nonsubstitutable Costly
Costlyto
toImitate
Imitate
Capital Market
Stakeholders
• Suppliers
• Host communities
• Unions
Capital Market
Stakeholders
Product Market
Stakeholders
Organizational Organizational
Stakeholders Stakeholders
•Employees
•Managers
•Nonmanagers