Thinking of different competitive strategies


With the above;


Is the most western managers have accepted model, the core is how to maintain the consistency of the strategy, the core of another model is how to maximize use of resources.

Studies conducted by the global competition, the League of Nations and multinational management, we have close contact with senior managers in the United States, Europe and Japan. When we try to reveal the reasons of an enterprise success and failure in the global market, we are increasingly convinced that the managers of Western companies and the Far Eastern competition held by the strategic thinking in business is often very different. We believe that understanding these differences may help explain the behavior and results in a competitive battle, and in the traditional interpretation on the basis of supplementary explanation of the rise of Japan and the decline of Western reason.

First described in detail the managers do not participate in the survey made it clear that the strategic model, and then select a number of competitive battles, and recorded the ins and outs of these battle. Next, we collect evidence in terms of strategy, competitive advantage and the role of top management to prove that indeed there are different points of view in these areas.

Two different strategic model really emerge: one is the most western managers have accepted model, the core is how to maintain the consistency of the strategy, the core of another model is how to maximize use of resources. The two modes are not mutually exclusive, but their focus was very different, this focus on the competitive battle will be how to develop over time have a profound impact.

These two strategic model acknowledged that the limited resources and the environment changing brought problems to the competition. However, the first model is the vision of the enterprise "cuts" to adapt to the resources available, while the second model is emphasized to maximize resources to achieve the seemingly impossible goal.

Two strategic modes are admitted, the relative competitive advantages determine the relative profitability. The first model emphasizes looking for sustainable intrinsic and inherent advantages of the second model focuses on accelerating the process of organizational learning, and thus to create new advantages faster than competitors.

These two strategic patterns to recognize, up by stronger competitors battle is difficult. However, the strategic model of the first competition direction points to find the niche market (or simply let the companies avoid a veteran of the competition strong enemy), the second strategic model to guide enterprises to explore the new rules of the game, so that The veteran competitor's advantage to lose useless.

These two strategic models are acknowledged to balance the organization's scope of activities to reduce risk. First model focuses on the portfolio managers try to achieve balance in order to reduce financial risks by operating the business generate cash and cash consumption; the focus of the second mode is a combination of advantages, managers are trying to develop some impact on a broad enough range and taking into account the balance of advantage in order to reduce the risk of competition.

Two strategic modes have thought it necessary to decompose the organization, so that the top management of the investment needs of the unit can distinguish between different programs. In the first mode, resources are allocated to the product - market unit, the correlation between the unit by the same degree of the products, sales channels and customers to determine. The top management assumes that every business has a successful implementation of the strategic needs of all key skills. In the second mode, the investment is not only the product - market units to be allocated, but also to be allocated in accordance with the core competencies (such as microprocessor control, or electronic imaging). Top management keep track of all business investment, and strive to ensure that a single strategic unit plans will not hinder the future development because the laissez-faire.

The two modes are admitted, the whole organization at all levels act in concert to maintain. In the first model, the consistency of the company and division, is largely consistent financial goals. Consistent of the Division and its departments, mainly rely on strict rules to achieve the strategies adopted by the means to achieve, is to establish standard operating procedures, the definition of the markets they serve, adhere to industry practice. In the second mode, the consistency between the company and division from both sides are loyal to a specific strategic intent, and consistency between the Division and its departments from the company challenges and loyalty to the medium-term objectives , the company encourages the following employees to invent new ways to accomplish these goals.