1. Technology Strategy

2. Strategy Strategy is achieving an unassailable industry position
Porter (1980)
Strategy is building and leveraging unique resources
Prahalad & Hamel (1990)
Strategy is simple rules for pursuing emerging opportunities
Eisenhardt & Sull (2000)

3. Technology Strategy
The creation of a unique and valuable position, involving a set of technology-related activities; integrating technology plan and action into a chosen whole
The role of technology strategy:
Technology is a resource and a potential source of distinctive core competence
To manage technology as a resource and distinctive competence, a technology strategy must be developed
The technology strategy must support the business strategy in developing a competitive advantage

4. SWOT Analysis Strengths (internal) Weakness (internal)
Oppprtunities (external)
Threats (external)

5. Porter’s Value Chain Support activities Primary activities Margin
Firm infrastructure
Human resource management
Technology development
Procurement
Inbound logistics
Operation
Outbound logistics
Marketing and sales
Service
Primary activities
Margin

6. Porter’s 5-Force Industry Analysis Framework
Suppliers
Sources of bargaining power:
Switching costs
Differentiation of inputs
Supplier concentration
Presence of substitute inputs
Importance of volume to suppliers
Impact of inputs on cost or differentiation
Threat of forward/backward integration
Cost relative to total purchases in industry
New entrants
Entry barriers:
Economies of scale
Brand identity
Capital requirements
Proprietary product differences
Switching costs
Access to distribution
Proprietary learning curve
Access to necessary inputs
Low-cost product design
Government policy
Expected retaliation
Industry competitors
Factors affecting rivalry:
Industry growth
Concentration and balance
Fixed costs/value added
Intermittent overcapacity
Product differences
Brand identity
Substitution
Threat determined by:
Relative price performance or substitutes
Switching costs
Buyer propensity to substitute
Switching costs
Information complexity
Diversity of competitors
Corporate stakes
Exit barriers
Buyers
Bargaining power of buyers:
Buyer concentration
Buyer volume
Switching costs
Buyer information
Buyer profits
Substitute products
Pull-through
Price-sensitivity
Price/total purchases
Product differences
Brand identity
Ability to backward-integrate
Impact on quality/performance
Decision makers’ incentives

7. Generic Strategy Overall cost leadership Overall differentiation
Focus-segment cost leadership
Focus-segment
differentiation
focus
The areas of
competition
The way of creating the value

8. BCG’s Growth-Share Matrix
High Share
Low Share
High Growth
Star
Question mark
Low Growth
Cash cow
Dog $

9. Strategy as the Resource-based View
The RBV has two underlying assertions
Capabilities will differ among firms (resource heterogeneity)
These differences may be long lasting, resource immobility
Resources include competencies & capabilities
Competitive advantage flows from building unique, valuable resources that are difficult to imitate
Mata et al 1995

10. Capabilities of the Firm
Value Propositions
What we can offer
Capabilities
What we can do
Resources
Things we have

11. Core Competency
Views the collective learning in an organization as a resource
Three tests for identifying a core competency:
It provides potential access to a wide variety of markets,
It makes significant contribution to perceived customer benefits
It is difficult to imitate
What are your firm’s core competencies?
Prahalad and Hamel (1990)

12. Capabilities
Adapting, integrating, and reconfiguring internal and external organizational skills, resources, and functional competences to match the requirements of a changing environment.
Capabilities are something that a firm does based on the collective knowledge that it has in its core competencies
Your firm’s capabilities?

13. Value Net Customers Competitors Company Complementors Suppliers
Source: Brandenburger and Nalebuff, Coopetition (1996)

14. Nintendo and Video Game
Customers
Kids, parents
Toys “R” Us, Wal-Mart, etc.
Control supply of game cartridges
Competitors
Atari, Commodore, etc.
TV, books, sports
Develop cheap hardware and hit games to start virtuous circle
Move down experience curve
Bring in outside game developers and require exclusivity
Complementors
Acclaim, Electronic Arts, etc. (game development)
Sideway-integrate into software business
Limit number of titles per year per licensee to keep developers symmetric
Nintendo
Suppliers
Ricoh, Sharp, etc. (microchips)
Marvel, Disney, etc. (game characters)
Use trailing-edge technology
Develop the Mario character internally