Strategic Management Course Overview and Strategy Concept
Strategic Management Course Overview and Strategy Concept
Strategic Management Course Overview and Strategy Concept
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Business definition: the market <strong>and</strong> industry segments a<br />
firm is operating in<br />
� Business = industry segment in which company operates where it is<br />
possible to build barriers against other firms (=competitive advantage), by<br />
having lower costs or differentiation<br />
� There are basically two types of barriers<br />
– cost barriers: large differences in value chain activities leading to different<br />
cost positions<br />
– customer value barriers: different customer groups <strong>and</strong> needs<br />
� A business can be defined by<br />
– products/services<br />
– customer segments<br />
– company activities <strong>and</strong> technologies (value chain)<br />
– regions<br />
– different distribution channels<br />
Source: Bain & Company, Business DEfinition; Richard Koch, The Financial Times Guide to <strong>Strategy</strong><br />
© 2007 Prof. Dr. Bernd Venohr<br />
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