Coursera – Advanced Competitive Strategy

courseraVery interesting course – a wonderful overview with latest examples from European and American business landscape. ¬†I also liked the questions of the quiz – questions required to pay attention rather than simply recall most relevant of multiple choice options ūüėČ

Very organized and concise overview of strategies for growth, network effects, and international strategies.

A few interesting points from the course:

Interesting chart with customer profitability in different industries over time and also a chart indicating that “switching activity” is increasing in a particular industry.

switching-1

switching-2

 

 

The “browser wars” chart was used as a switching standards (network effect).

network-chrome

 

 

Mergers and Acquisitions chart – M&A activity occurs in waves, increases in time and deal value is also raising.

MA

MA-2

MA-3

 

And a very comprehensive slide on M&A not achieving what was expected ūüôā

value

 

 

Internalization

Global strategy: Is in high need for global integration and favors efficiency over responsiveness to local requirements for the sake of lowering costs.  Examples: Microsoft selling the same software, P&G establishing a global brand.

Multidomestic: Is in high need for local adaptation but has only a minimal pressure to lower costs. It will thus sacrifice efficiency for the sake of responsiveness to local requirements.  Example: Adaptation of H.J. Heinz products to match local preferences (non garlic and onion ketchup is tailored to the Indian taste)

Transnational:¬†Is in high need for both local adaptation and global integration (Middle ground). Example: McDonald’s in Europe – rely on global brand, but include some national variations.

International: ¬†Is neither in need for local adaptation, nor does it require to react to pressures to lower costs , or “export strategy.” ¬†Examples are export of food, clothing, etc.