Please fill out a name card. Write your name in LARGE letters in black magic marker We’ll keep name cards in the folder for your section. Please turn them in after class. Thanks!

MP3 / MD740 Strategy & Information Systems Sept. 8, 2004 Course Introduction What is Strategy? John Gallaugher www2.bc.edu/~gallaugh

Topics Covered The Hypercompetitive Landscape What is Strategy? –Operational Effectiveness –Strategic Positioning Resource-based Competitive Advantage Discussions: Southwest, FreshDirect

HyperCompetition Profits from a new product or service launch exploitation counter-attack Profits from a new product or service Time

Critical Concepts in Understanding Competitive Advantage Operational Effectiveness – performing the same tasks better than your rivals. Strategic Positioning – performing different tasks than your rivals, or performing the same tasks in a different way.

How Do We Know if Assets Yield Sustainable Advantage? Rareness –Is the asset in limited supply or difficult to acquire? Value –Does the asset yield value to the firm/customers? Imperfectly Imitable –Is the asset impossible to imitate? Non-Substitutable –Is the asset without comparable substitutes?

87% Decline in International DS-3 Pricing over the past two years Source: BandXChange