1. The US beer industry was transformed significantly since 1980s. identify two important variables in this environment. Discuss the different strategy used by Anheuser-Busch’s and Samuel Adams?
Change in environment:
- Demand in US: 1980: 34.0 gallon/person, 2003: 29.1/person, 2010: 1.5% drop from 2009.
- Technology allows production in very high quantity
Anheuser-Busch: SAB-Miller and Molson Coors
- High volume and standard quality
- Economy of scale (production, marketing)
- Commands about 80% of sales, sometimes result from M&A
Micorbrewers: Samuel Adams, Corona and Heineken
- Low volume, crafy, higher quality
- The only segment that experienced growth
2. One of ...view middle of the document...
What are the decisions that it used? Which building block of competitive advantage did Southwest Airlines rely on?
Southwest used; low ticket prices, fly point- to- point, fly one airplane model, and no movie (entertainment).
Southwest used efficiency because they have competitive advantage through lower cost structure. Also, they used customer responsiveness, because they avoid delay time by using the point- to- point fly.
4. Discuss the relationship between “planned strategy,” “unrealized strategy,” “realized strategy,” and “emergent strategy.” State a strategy (action) by Microsoft that can be classified as unrealized strategy when window95 was introduced.
Planned strategy: strategy selected through careful analysis
Realized strategy: strategy actually adopted in the end.
Emergent strategy: an unplanned strategy that evolved during the course of implementing the intended strategy.
Deliberate strategy: strategy that was rigidly pursued.
1. In 1995, in addition to Windows 95, MS introduced MSN as well.
2. Members (paid customers) did not materialized for MNS because of free Internet.
3. MS subsequently substaintially reduce their expectation for MSN (and the strategy faild). Unplanned high-end Chinese buffet (as a business model). Unplanned product: potato chip from French Fries.
4. Lower level employeed have developed dthe IE browser.
5. Lower level managers decided to improve IE’s functionality to meet minimum expectation
6. The Internet Explorer becomes part of the MS’ strategy when higher level managers decide to leverage this “resource”
5. There are various offensive tactics that a company may use (there are five of them). Identify one of these offensive tactics and describe that tactic and illustrate it with an example.
- Frontal assault: the attacking firm goes head-to-head with its competitors from price to promotion to distribution channel. Ex: AT&T and Verizon
- Flanking Maneuver: a firm may attack a part of the market where the competitor is weak. Ex: Intel vs AMD
- Bypass attack: attempts to cut the market out from under the established defender. Ex: Encyclopedia Britannica
- Encirclement: occurs as an attacking company encircles the competitor’s position in term of products or markets or both. Ex: Steinway
- Guerilla Warfare: a firm may choose to hit & run; involves intermittent assaults on a competitor’s different market segments. Ex: Virgin Group/ Jet Blue
- Strategic decision: small southern towns, a leader in IS/T, logistics, HR. leveraged its size.
- Potential problems: international market, competitors: Latin Americas and EU, and online market.
2. Chevy Volt:
- Strategic factors: oil price, global warming, cost of battery, and Toyota Prius.
- What is Volt? Electric car with gasoline as back up power. Volt uses lithium ion that can travel 40 miles when fully charged (in about 6 hours).
Final push? Tesla...