Due to technical change, substitute products can indicate cheaper price OR better value; such as iPod for AUDIO Porter's your five forces talks about the exterior things
Worth differentiation and price differentiation
ROIC: go back on invested capital; eg. Ryanair has lower income because first investment is definitely high The greater you have control of the industry the less dangerous for you; дёЂжўќйѕЌvertical integration Setting (vision statement)
Differentiated competition: has the two value and price; but focuses on a very important factor Competitor with dual edge: balances both equally value and price Two sorts of placement: cost command; quality management Base value on distributor, buyer, and competitors
Always set your price lower than a buyer's willingness to pay Return on revenue (ROS)
Come back on collateral (ROE)
Go back on asset (ROA)
Quality differentiation: to push WTP up
Communicate factors behind higher WTP
Week 2 (Apple)
Dealer power: ex. Intel snacks
Power of provider and customer depends on the quantity and relationship (goodwill, reputation) Consider complementors when analyzing technological industry (iPod required iTunes to beat Glass windows Media Player)
Week a few (Husky)
Method differentiation: how you will do things
Scope: geography (where), consumer (for whom), merchandise (what) Two types of revenue: B2B (EoS smaller) and B2C
Deviating from objective statement could be a risk since profits may erode and you could go via a force specialist to a generalist Transform will destroy internal consistency
Week three or more (Ducati)
In the event scope and differentiation is apparent, position will probably be good (focus +differentiation sama dengan attractive position) VRIN: beneficial, rare, expert, nonsubstitutable
Products and services ought to be superior upon at least one characteristic: durability, graphic, speed of delivery, selection, ease of use and so forth In the industry, you may need multiple difference factors (ex. Retail industry: you need store experience, trendiness, etc)
Week 4 (Ryanair)
May enter market if: abundant competitors,...
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