The seventh week of lecture...Chapter 6
" 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.
- a formal agreement between two or more separate companies in which they agree to work cooperatively toward some common objective.
- a partnership involving the establishment of an independent corporate entity that the partners own and control jointly sharing in its revenues and expenses.
Addition :
The example of blue ocean company.
FedEx Federal Express
http://www.marketwatch.com/story/fedex-express-recognizes-employee-heroes-for-exceptional-customer-and-community-service-2013-10-17
courier-journal.com
http://www.courier-journal.com/viewart/20131015/BUSINESS/310150077/
http://www.courier-journal.com/viewart/20131023/BUSINESS/310230130/
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