Podcast
Questions and Answers
What is the reason why customers prefer to purchase from a global competitor rather than a domestic firm?
What is the reason why customers prefer to purchase from a global competitor rather than a domestic firm?
- The global company's brand is well-known
- The global company has a strong marketing strategy
- The global company's product is cheaper
- The global company's product is superior (correct)
What is a key source of competitive advantage in the global economy?
What is a key source of competitive advantage in the global economy?
- Financial resources
- Technological infrastructure
- Marketing strategies
- Employees (correct)
What is required for companies to earn above-average returns in the 21st century?
What is required for companies to earn above-average returns in the 21st century?
- Merging with other companies
- Meeting local standards
- Innovating new products
- Meeting global standards (correct)
What is the result of the increasing rate of technology diffusion?
What is the result of the increasing rate of technology diffusion?
How long did it take for the telephone to reach 25% of all homes in the United States?
How long did it take for the telephone to reach 25% of all homes in the United States?
What is one way in which technological changes have impacted individual firms and industries?
What is one way in which technological changes have impacted individual firms and industries?
What is one category of technology-related trends and conditions?
What is one category of technology-related trends and conditions?
What is the name given to the current economic environment with many important countries having unique interests and environments?
What is the name given to the current economic environment with many important countries having unique interests and environments?
What drives firms to aggressively challenge their competitors in a hypercompetitive market?
What drives firms to aggressively challenge their competitors in a hypercompetitive market?
What is a global economy characterized by?
What is a global economy characterized by?
What is globalization a product of?
What is globalization a product of?
What is a result of globalization?
What is a result of globalization?
Why is it important for firms engaging in globalization to make culturally sensitive decisions?
Why is it important for firms engaging in globalization to make culturally sensitive decisions?
What is a challenge faced by highly globalized firms?
What is a challenge faced by highly globalized firms?
What has been the result of globalization on performance standards?
What has been the result of globalization on performance standards?
What is an example of a company that has engaged in globalization?
What is an example of a company that has engaged in globalization?
What is the primary goal of a firm's strategy implementation?
What is the primary goal of a firm's strategy implementation?
What has become increasingly challenging due to advances in technology?
What has become increasingly challenging due to advances in technology?
What is a result of effective strategic actions in the context of carefully integrated strategy formulation and implementation efforts?
What is a result of effective strategic actions in the context of carefully integrated strategy formulation and implementation efforts?
Why is the pace of change relentless and ever-increasing in many industries?
Why is the pace of change relentless and ever-increasing in many industries?
What has changed the competitive landscape of the entertainment industry?
What has changed the competitive landscape of the entertainment industry?
What is the primary role of the strategy portion of the model?
What is the primary role of the strategy portion of the model?
What is the outcome of a dynamic strategic management process?
What is the outcome of a dynamic strategic management process?
What is a recent development in the entertainment industry?
What is a recent development in the entertainment industry?
What is the main assumption of the resource-based model of above-average returns?
What is the main assumption of the resource-based model of above-average returns?
What are resources classified into?
What are resources classified into?
What is a capability in the resource-based model?
What is a capability in the resource-based model?
What are core competencies?
What are core competencies?
What is an example of a core competency?
What is an example of a core competency?
According to the resource-based model, what is the primary reason for differences in firms' performances across time?
According to the resource-based model, what is the primary reason for differences in firms' performances across time?
What is a resource in the resource-based model?
What is a resource in the resource-based model?
Can individual resources alone yield a competitive advantage?
Can individual resources alone yield a competitive advantage?
What is a common feature among Netflix and other streaming content providers like Amazon?
What is a common feature among Netflix and other streaming content providers like Amazon?
What is the impact of social media advertising on traditional competitive advantages?
What is the impact of social media advertising on traditional competitive advantages?
What is required for a firm to be strategically competitive in today's business world?
What is required for a firm to be strategically competitive in today's business world?
What is the consequence of failure for firms in today's competitive landscape?
What is the consequence of failure for firms in today's competitive landscape?
What does the effective use of the strategic management process do for firms?
What does the effective use of the strategic management process do for firms?
What is hypercompetition characterized by?
What is hypercompetition characterized by?
What drives hypercompetition according to the text?
What drives hypercompetition according to the text?
What is one of the forms of competition that occurs in hypercompetition?
What is one of the forms of competition that occurs in hypercompetition?
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Study Notes
Globalization and Technological Changes
- Firms competing in the global economy must meet or exceed global standards to earn above-average returns.
- Workers flow freely among global economies, making employees a key source of competitive advantage.
- Managers must learn to operate in a "multi-polar" world with many important countries having unique interests and environments.
Technology and Technological Changes
- Technology trends and conditions can be categorized into: technology diffusion and disruptive technologies, the information age, and increasing knowledge intensity.
- The rate of technology diffusion has increased significantly over the past 15-20 years.
- Examples of technology diffusion rates: telephone (35 years), TV (26 years), radio (22 years), PCs (16 years), Internet (7 years).
The Competitive Landscape
- The fundamental nature of competition in many industries is changing.
- Markets are increasingly volatile, and the pace of change is relentless.
- Advances in interactive computer networks and telecommunications have blurred the boundaries of the entertainment industry.
- Cable companies, satellite networks, telecommunications companies, and internet-only streaming services are competing for entertainment revenue.
Hypercompetition
- Hypercompetition describes excessive competition that creates inherent instability and necessitates constant disruptive change.
- It results from the dynamics of strategic maneuvering among global and innovative combatants.
- Firms aggressively challenge their competitors to improve their competitive position and ultimately their performance.
The Global Economy
- A global economy is characterized by the free flow of goods, services, people, skills, and ideas across geographic borders.
- Globalization increases the range of opportunities for companies competing in the current competitive landscape.
- Firms engaging in globalization must make culturally sensitive decisions when using the strategic management process.
Resource-Based Model of Above-Average Returns
- The resource-based model assumes that each organization is a collection of unique resources and capabilities.
- A firm's resources are classified into three categories: physical, human, and organizational capital.
- Resources are either tangible or intangible in nature.
- Individual resources alone may not yield a competitive advantage; capabilities are formed when resources are integrated.
- Core competencies are capabilities that serve as a source of competitive advantage for a firm over its rivals.
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