1. Business strategy
2. Functional strategy
3. Corporate strategy.
A firm or a business is said to have created a COMPETITIVE ADVANTAGE over its rivals if it has
driven a wider wedge between willingness to pay and costs than its competitors have achieved
A company is said to have created a CORPORATE or PARENTAL ADVANTAGE if it has driven a wedge
between the break-up value of its businesses and the enterprise value
Companies that bring different businesses together …can be successful/ unsuccessful.
Synergies: Facebook bought watsapp
BCG: learning curve- double your output cumulatively, cost comes down, as u gain experience u
learn estimate 20% learning curve e.g assembling one plane first time takes time but once u have
assembled 100 u know how to do it and then u do it faster and cost comes down.
Strategic pricing – gaining market share by strategic pricing if I know I am gonna learn overtime I
drop my price and then I get lot more demand and as a result producing lot more and drop my cost.
improve my market share
Dogs –rid
Question mark – finance from stars
Industry attractiveness
Business strengths
Separate businesses –how to compete in markets.
Portfolio momentum: being in the right place at right time.
Granularity of growth
Creating value one time : (how)stand alone: one time :company that build business: buy a business ,
improve , create value and then sell it off.
Corporate advantage is realized at the business-unit level, where individual businesses use the
benefits of corporate affiliation to outperform their rivals in a particular industry
Collis paper:
The way company creates value through co-ordination and configuration of its multi business
activities.
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