Litteraturseminarie Grupp 2 Sharareh Ani Amanada Hellingwerf Denice Johansson Lina Persson.

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Litteraturseminarie Grupp 2 Sharareh Ani Amanada Hellingwerf Denice Johansson Lina Persson

AGENDA Michael Porter - What is strategy? C.K Prahalad & Gary Hamel - The core competence of the corporation Jämförelse av de båda artiklarna

Michael Porter – What is strategy? Operational effectiveness Strategic positioning Strategy...  is the creation of a unique & valuable position, involving a different set of activities  requires you to make trade-offs in competing - to choose what not to do  involves creating "fit among a company's activities Why do so many companies fail to have a strategy?

Operational effectiveness is not strategy! Delivers greater efficiency Results in lower average unit costs Perform similar activities better than competitors Operational effectiveness ≠ Strategy

Strategy is… Strategy rests on unique activites A sustainable strategic position requires trade-offs "Fit" drives both competitive advantage & sustainability

Strategy rests on unique activities Olika uppsättningar av aktiviteter En värdeskapande mix Exempel: IKEA Strategi position Lågkostnad Yngre Målgrupp Leveranstid Showrooms Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value.  The essence of strategy is in the activities-choosing to perform activities differently or to perform differently or  to perform different activities than rivals.  Exempel: IKEA Har en tydlig strategiposition Fokuserar på en yngre målgrupp Låter kunderna få montera sin egna möbler, använder sig av show rooms för att få inspiration medan andra konkurrenter visar olika avdelningar sedan får man vänta på leveransentiden Three distinct sources: Variety based positioning, Needs based positioning, Access based positioning (s.6)

A sustainable strategic position requires trade-offs En hållbar fördel – Ej garanterad Konkurrenter kan imitera en värdefull position Måste finnas trade-offs med andra positioner En hållbar fördel kan inte bli garanterad Konkurrenter kan kopiera en eftertraktad position För att vara hållbart måste det finnas kompromisser/avvägningar (trade-offs) med andra positioner Trade-offs are essential to strategy. They create the need for choice and purposefully limit what a company offers. Trade offs är avgörande för strategin, de skapar behovet av val och målmedvetet begränsar vad företagen erbjuder En kompromiss innebär att en mer av en sak kräver mindre av en annan A sustainable advantage cannot be guaranteed by simply choosing a unique position Competitors will imitate a valuable position in one of the two following ways  Choose to reposition itself to match the superior performer  Seek to match the benefits of a successful position while maintaining its existing position (straddling) To be sustainable there must be trade offs with other positions A trade-off means that more of one thing necessitates less of another

”Fit” drives both competitive advantage & sustainability Strategi handlar om att kombinera aktiviteter  Konkurrensfördelar kan uppnås genom sättet aktiviteterna passar(fit) och förstärker varandra Fit Hindrar imitation Förstärker positionens värde Separata aktiviteter Strategi handlar om att kombinera aktiviteter tillskillnad från operativ effektivitet som fokuserar mer på att uppnå hög kvalitet i enskilda verksamheter, funktioner. Fit is important because discrete activities often affect one another. locks out imitators by creating a chain that is as strong as its strongest link... enhances a position's uniqueness and amplifies trade-offs Fit är viktigt, passning diskreta/separata aktiviteter påverkar ofta andra i kedjan.

Why do so many companies fail to have a strategy? 
 Failure to choose The growth trap Profitable growth The role of leadership

Så… Vad är strategi? ”Strategy is creating fit among a company’s activities. The success of a strategy depends on doing things well-not just a few-and integrating among them” Efter att ha analyserat alla delar som hör till Strategi kan vi svara på frågan som även är titeln på artikeln. Så vad är egentligen strategi? Enligt Porter är strategi när man skapar en korrelation (fit) mellan ett företags aktiviteter. Hur framgångsrik strategin är beror på att sakers görs bra- inte bara ett fåtal- och integration finns bland dem. Strategi är att skapa en *fit mellan ett företags verksamhet. Framgången för en strategi beror på att göra många saker väl- inte bara ett fåtal - och integrera bland dem. Om det inte finns någon lämplig fit mellan aktiviteterna, finns det ingen tydlig strategi och svag hållbarhet.

C.K Prahalad & Gary Hamel – The Core Competence of the Corporation "Core competencies are the collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies" In the short run: Competitiveness derives from the price/performance attributes of current products In the long run: Competitiveness derives from an ability to build at lower cost and more speedily than competitors, the core competencies that spawn unanticipated products Prahalad and Hamel urged leaders rethink the concept of the corporation itself – from a portfolio of businesses managed and optimized independently, to a portfolio of competencies spanning across individual businesses and delivering real and sustaining competitive advantage.

The roots of competitiveness Prahalads och Hamels "träd" där rötterna speglar speciella kompetenser. Ur rötterna växer företagets kärnprodukter eller "core products" varav olika business units växer fram. Tillslut, ur BU växer de slutgiltiga produkterna "end products" fram.  Exempel: Canon? 

Exempel Utan kärnkompetens är företaget en samling ”business units”. Kärnkompetens är klistret som håller ihop företaget Exempel -> Honda: ”Gasoline powered engines”

Identifying core competences A core competence provides potential access to a wide variety of markets A core competence should make a significant contribution to the perceived customer benefits of the end product A core competence should be difficult for competitors to imitate

Losing Core Competences Decentralisering Outsourcing ”Cost-cutting moves” Inse sin kärnkompetens!

SBU (Strategic Business Unit) vs Core competence Criticism against SBU Underinvestment in Developing Core Competencies and Core Products Imprisoned Resources Bounded Innovation

Strategic Architecture " A road map of the future that identifies which core competencies to build and their constituent technologies"

Tankar och reflektioner

Tack för oss!