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Questions and Answers
What is the first step in the management process for developing a strategy?
Which of the following is NOT considered a part of formulating a competitive strategy?
What is one of the key factors to consider in creating a dynamic strategy?
In the context of strategy development, what do opportunities and threats refer to?
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Which question addresses the timing aspect in developing a competitive strategy?
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Which factor is NOT considered a barrier to entry into an industry?
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What is one potential weakness identified in the SWOT analysis for AMGEN?
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Which of the following is an example of productive differentiation?
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What describes 'contrived deterrence' in the context of barriers to entry?
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Which of the following opportunities might AMGEN pursue to sustain growth?
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What is a characteristic of a differentiation strategy?
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What type of strategy involves forming partnerships to achieve common goals?
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Which is NOT a main threat to YouTube?
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How does a niche market strategy differ from others?
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Which type of strategy is primarily focused on cost efficiency?
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What is a common feature of follow-on biologics?
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Which of the following exemplifies a product differentiation strategy?
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What defines the principle of having a clear roadmap in a new venture?
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Study Notes
Competitive Strategy
- A strategy is a plan or roadmap for a firm or organization to achieve its mission and goals. It's not static and requires constant adaptation.
- Developing a strategy involves a process:
- Defining the vision, mission statement, and business model
- Describing core competencies, customers, and competitive advantage
- Analyzing the industry and competitive landscape
- Assessing strengths and weaknesses within the context of the industry and environment
- Identifying opportunities and threats for the venture
- Determining key success factors using Porter's Five Forces model
- Formulating strategic options and choosing the most suitable strategy
- Translating the strategy into action plans with appropriate measures and controls
Six Questions for a Dynamic Strategy
- Profitability: Why are we pursuing this objective? Where will we be active? How will we achieve our objective?
- Customer: Who are our customers? How will we serve them? What is their value?
- Innovation: How will we innovate? Will we create our own products or acquire existing ones?
- Timing: When will we act and at what speed? What are the benefits of early or late entry?
- Positioning: What will differentiate our product? How will we communicate our value proposition?
- Competition: With whom will we compete and cooperate? What are their strengths and weaknesses?
Barriers to Entry into an Industry
- Factors that make it expensive for companies to enter an industry include:
- Economics of scale: The cost advantage of producing in large quantities.
- Cost advantages independent of scale: Lower production costs due to access to resources or technology.
- Product differentiation: Offering unique products or services that are difficult to replicate.
- Contrived deterrence: Creating barriers through aggressive pricing or marketing strategies.
- Government regulation: Legal requirements or restrictions that make entry challenging.
- Switching costs: The expense incurred by customers when switching from one provider to another.
SWOT Analysis for Amgen
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Internal (Organizational)
- Strengths: Expertise in developing and manufacturing biologic drugs, high-margin products with limited competition.
- Weaknesses: Difficulty discovering novel therapeutics, potential for revenue decline.
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External (Environmental)
- Opportunities: Expanding marketed products to new territories, indications, and formulations, allocating resources to discover novel therapeutics to sustain growth.
- Threats: Competition from follow-on biologics and price pressures from pharmaceutical companies entering the biologics arena.
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Description
Explore the essential components of developing a competitive strategy for organizations. This quiz provides insight into the process of defining vision and mission, analyzing the competitive landscape, and formulating actionable plans. Test your knowledge on strategic management and the key factors that drive business success.
