MGTC 420 – Strategic Development (1)
Strategic Development presents the most effective business strategies being implemented today. This competency addresses the Five Competitive Forces that shape industry competition and shows how the strongest competitive force(s) determines the profitability of an industry and becomes the most important factor in strategy formation. It also examines the business-level and corporate-level strategies, what the differences are, and how, and when to apply each strategy.
Upon successful mastery of this competency, you will be able to:
- Develop an understanding of the Five Forces Model of Competition – (1) level of rivalry in an industry, (2) potential for new entrants, (3) power of large suppliers, (4) power of large customers, and (5) threat of substitute products.
- Develop an understanding of business-level strategies – (1) Low-Cost Strategy, (2) Differentiation Strategy, (3) “Stuck in the Middle”, and (4) Focused Low-Cost and Focused Differentiation Strategies.
- Develop an understanding of corporate-level strategies – (1) concentration on a single industry, (2) vertical integration, (3) diversification, and (4) international expansion.