Strategic Management

Could a firm simultaneously pursue focus, differentiation, and cost leadership? Should firms do that? Discuss.

If a firm can achieve cost leadership and differentiation simultaneously, the benefits are great because differentiation leads to premium prices, and at the same time that cost leadership implies lower costs. An example of a firm that has achieved success in both a cost advantage and differentiation is McDonald

77. 
    There is a growing trend of increased collaboration among competitors. List the benefits and drawbacks of this practice.
    

Benefits: Ideally, coopetition is intended to improve the performance of all the rival firms involved. The reason being is that by collaborating with competitors, companies have access to new resources, capabilities, and opportunities that would not be available to them if they competed using their own assets
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77. 
    List four major benefits of forming a joint venture to achieve desired objectives.
    

1 Access to new markets and distribution networks.
2 Increased capacity.
3 Sharing of risks and costs (i.e. liability) with a partner.
4 Access to new knowledge and expertise, including specialized staff.

77. 
    List six major benefits of acquiring another firm to achieve desired objectives
    

1 Obtaining quality staff or additional skills, knowledge of your industry or sector and other business intelligence.
2 Accessing funds or valuable assets for new development.
3 Your business underperforming.
4 Accessing a wider customer base and increasing your market share.
5 Diversification of the products, services and long-term prospects of your business.
6 Reducing your costs and overheads
7 Reducing competition
8 Organic growth, i.e. the existing business plan for growth, needs to be accelerated

77.