Scaling and Ecosystem PDF

Corporate-Level Strategy Corporate-level strategy concerns: Arena: The choice of the markets and industries the firm competes in Diversification- related v/s unrelated Vehicle: Mode of entry into new businesses Internal development,...

Corporate-Level Strategy Corporate-level strategy concerns: Arena: The choice of the markets and industries the firm competes in Diversification- related v/s unrelated Vehicle: Mode of entry into new businesses Internal development, acquisitions/merger, joint venture/strategic alliance Staging: Sequences of entries Portfolio Management: How the firm manages its portfolio of businesses and allocates resources Restructuring: Asset, Management, and Capital Diversification is often looked at as one type of corporate-level growth strategy; restructuring is the other type  Business level strategies An integrated and coordinated set of long term decisions, commitments, and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets  Relationship between strategy and business model Firms that address the same customer need and pursue similar product market strategies can do so with very different business models Flipkart started with “Cost leadership through intermediary model” and later moved to “Cost leadership through marketplace” and now follows “Cost leadership through hybrid model” Business model: encompasses the pattern of the firm’s economic exchanges/ transactions with external parties; outlines the essential details of a firm’s value proposition for its various stakeholders; as well as the activity system the firm uses to create and deliver value to its customers. ?? DID YOU NOTICE SOMETHING AMISS VIS-À-VIS STRATEGY  Identify the BM? Sr. No. and Description Example BM type 1. the practice of using another firm's successful business model. McDonalds a. Dominos Franchising For the franchisor, the franchise is an alternative to building 'chain stores' to distribute goods and avoid investment and liability over a chain. 2. works by offering basic Web services, or a basic downloadable digital Adobe b. Freemium product, for free, while charging a premium for advanced or special features. 3. used for the sale of products where the revenue of the MLM company is Amway c. Multi-level derived from a non-salaried workforce selling the company's products, while marketing the earnings of the participants are derived from a pyramid-shaped or binary compensation commission system. 4. wherein one item is sold at a low price (or given away for free) in order to Printers & d. Razor and increase sales of a complementary good, such as consumable supplies. cartridges; blades game consoles & software. 5. where a customer must pay a subscription price to have access to a product Newspaper; e. or service. The model was pioneered by magazines and newspapers, but is Magazines Subscription now used by many businesses and websites.  Identify the BM? Sr. No. and Description Right Choice BM type 6. physical presence of a business in a building/ other structure; refer to a Mom and f. brick-and-mortar company that possesses or leases retail stores, factory production Pop Stores facilities, or warehouses for its operations 7. company integrates both offline (bricks) and online (clicks) presences; Dominos g. click-and- when a chain of stores allows the user to order products online, but lets mortar or them pick up their order at a local store. Bricks and clicks 8. “providing of an information technology platform by an e-commerce h. online entity on a digital and electronic network to act as a facilitator between marketplace buyer and seller.” model of platforms that enable buyers and sellers to discover price and transact ecommerce with one another efficiently and transparently. 9. “an ecommerce activity where inventory of goods and services is i. Inventory model owned by e-commerce entity and is sold to the consumers directly.” of ecommerce customer buys the product from the ecommerce firm who manages an inventory (stock of products), interfaces with customers, runs logistics and involves in every aspects of the business. 10. Software applications hosted in the cloud and provided on a MS j. Software-as-a- subscription basis Service (SaaS) Provider  Alexander Osterwalder and Yves Pigneur. 2010. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Wiley. Key Activities Value Proposition Customers Key Partners Customer What key activities do What value do we Who is my Who are our key Relationships deliver to the customer? (Use partners? our value propositions How do we get, keep customer? of STP) Who are our key require? and grow customers? Our distribution Which one of our Geographical suppliers? Which customer customers’ scope? Which key channels? relationships have Customer problems are we Where is she resources are we we established? helping to solve? located in the acquiring from relationships? How are they Revenue streams? What bundles of industry value our partners? integrated with the products and chain? Which key rest of our business services are we How do I acquire activities do Key Resources model? offering to each and grow my partners What key resources do How costly are they? segment? customer base? perform? our value propositions Which customer How costly is require? Channels needs are we this? Our distribution Through which satisfying? channels? channels do our What is the Customer relationships? customer segments minimum viable Revenue streams want to be reached? product? Cost Structure Revenue Streams What are the most important costs inherent to our For what value are our customers really willing to pay? business model? For what do they currently pay? Which key resources are most expensive? What is the revenue model? Which key activities are most expensive? What are the pricing tactics?  Ecosystem Strategies Business ecosystems: Largely independent economic players working together to deliver solutions; two flavors: Transaction ecosystems A central platform links two sides of a market, such as buyers and sellers on a digital marketplace; Solution ecosystems The core firm orchestrates the offerings of several complementors, such as product manufacturers in a smart-home ecosystem. Eight questions framework for developing a company’s ecosystem strategy: What Is Your Business Ecosystem Strategy? March 2022 BCG Article By Ulrich Pidun, Martin Reeves, and Balázs Zoletnik  1 Should We Engage? Ecosystems are expensive and risky to launch (