Competitive Strategy

Prof. Kim Claes

Course Description

Competitive Strategy examines how firms obtain and sustain competitive advantage through the
development and implementation of their strategies. The perspective is that of a top level executive
whose responsibility is the long-term health and survival of an entire organization or a major
business unit. The module is organized around the following themes: the strategic decision making
process and business strategy; external analysis (industry structure, positions in markets and value
chains, and competitor analysis); internal analysis (firms’ unique value-creating
resources/offerings); and identifying constraints on change and evolution processes.

The major objectives of this module include the development of 1) a general management
perspective: how to think strategically; 2) working knowledge of fundamental strategy concepts
and issues; and 3) basic skills for analyzing strategic issues facing your current/future organization.
This module will expose students to rigorous theoretical analysis of real world business practice.
Therefore, we will use a combination of lecturing, class discussion, videos, simulations, breakout
exercises, and case analyses. The module is recommended for participants pursuing careers
requiring the analysis and formulation of strategic directions for companies (general management,
business development, consulting), or the assessment of long-term profit opportunities within an
industry (e.g., investment banking, venture capital, private equity).

Mission Statement

The mission of the SKK Graduate School of Business (SKK GSB) is to advance business
knowledge in a multicultural learning environment in order to develop socially responsible
managers who will lead in a global organization.

Learning Goals

In accordance with SKK GSB’s educational mission and learning goals, this course will help you
develop the following:

- Possess managerial skills to address organizational problems

- Possess analytical skills for sound decision making
- Apply management knowledge to real-world settings

Required Materials
There will be no required textbook for the module. Students can use the instructor’s slides and
their own class notes. Additionally, there will be a small course-pack comprising cases and other
material. When necessary, complementary materials will also be distributed in class.

Grading
The module grade will be calculated in the following way:

Active and individual in-class participation* 25%

Pre-Class Group Assignments 10%
Final Group Assignment 30%
In-class Individual exam 35%
Total 100%

* Given the importance of active and individual in class participation, class attendance and active
participation are necessary for students’ success in this class.

Active and Individual in-class Participation

Much managerial communication is verbal. Therefore, active and individual participation in class
discussions of lecture and case materials is required of each student. Students are expected to
communicate their ideas clearly and accurately in discussions. A class participation grade will be
assigned based on the instructor's evaluation of the student's contribution to the discussion based
on the following criteria:

1. Is the participant a good listener?

2. Are the points made relevant to the discussion? Linked to the comments of others?
3. Do the comments show evidence of thoughtful analysis of the case?
4. Does the participant distinguish among different kinds of data (i.e., facts, opinions, beliefs,
concepts, etc.)?
5. Is the participant willing to share and interact with other class members (and especially with
class members outside of his/her group)?
6. Do comments classify and highlight the important aspects of earlier comments and lead to a
clearer statement of the concepts being covered?

Just looking good, attending classes, and participating very actively but silently in one’s own head
is not considered active participation! Don’t be surprised if you have a bad grade because you
never actively participated.

Note: I will randomly cold call on students and ask questions regarding the content of the assigned
articles or cases. Therefore, all students must be well prepared at all times.
Pre-Class Group Assignments

Unless otherwise specified: Pre-Class Group Assignments require each group to respond in writing
to study questions provided for each class (when applicable of course, see below. One assignment
per group). Text length should be between 1 to 2 pages long (single line spacing, 12 size Times
New Roman, default margins, all graphs, tables, and references (if any) at the end of the text). The
assignments should be submitted at least 24h before the beginning of class. Late assignments or
assignments not strictly respecting the format will not be accepted and will receive an automatic 0
grade. The assignment title should include: your group name or number – class assignment number.
Example: Group 2 – assignment for class 1.

Final Group Assignment

Unless otherwise specified: this consists of a group research project in which you apply one or
more concepts/frameworks of the class to real life business. For instance (the following examples
are by no means exhaustive) you can: look up the current business news and analyze one given
topic using the frameworks from class and give suggestions on what the business leaders involved
in the problem should do, take your own company’s strategy and critique it, explain where you
would take your company strategically, etc. The aim of this assignment is to demonstrate your
critical thinking about business life, structure your thought process, and use the knowledge
acquired in class. You are free to choose any subject you feel comfortable with but it will need to
be approved by Session 7.

For this assignment you will: 1) write a text that is 4 to 5 page long (single line spacing, 12 size
Times New Roman, default margins, all graphs, tables, and references (if any) at the end of the
text) and 2) prepare a pptx presentation for class. Time allotted for each presentation will vary
depending on the size of the class. Report and slides will be due at the latest by 72h before class
time. More details about the group assignment will be provided throughout the class.

In-class Individual Exam

There will be an in class exam for which you will have to bring your laptop. All questions in the
final exam will be based on mandatory class materials and discussions only. The questions will
test whether students clearly understand the concepts/frameworks and know how to apply them to
various contexts. It is therefore very important to read all the materials before coming to class.

Rules regarding the use of technology

No technology allowed in class.
 Schedule and Class Contents

(Note: the professor reserves the right to modify the schedule and content)

Session Strategy and Cognition

1 Readings: - This Syllabus
- Selection Bias and the Perils of Benchmarking (R0504H)
Questions: - The syllabus is most likely not internally consistent or clear for
all audiences. What are: 2 questions you might have regarding
the syllabus, or 2 recommendations/complaints/requests for
future editions?
- If (categorical) recommendations cannot or should not be
drawn from historical case studies and (some) flawed business
research, what is the value of this Strategy class (if any)?
Session Value Chain
2 Readings: - Competitive Advantage: The Value Chain and your P&L –
Applying Michael Porters’ value chain framework to your
business (8890BC)
Questions: - No question but think about the value chain of SKK GSB
Session Generic Strategies, Value Creation, and Value Capture (I) - Cost Leadership
3 Readings: - Case: Wal-Mart Stores, Inc. (HBS 794024-PDF-ENG)
Questions: - What are the sources of Wal-Mart’s competitive advantage in
discount retailing? How do they achieve cost leadership?
- How sustainable is their position in discount retailing in the
future?
Session Generic Strategies, Value Creation, and Value capture (II) - Differentiation
4 Readings: - Case: eHarmony (HBS 9-709-424)
Questions: - Does eHarmony have a competitive advantage? If so, where
does it come from?
- How serious is the competitive threat to eHarmony?
Session External perspective: Industry Environment and Competition (I)
5 Readings: - The Five Competitive Forces that Shape Strategy (HBR,
R0801E-PDF-ENG)
Questions: - What are the 5 forces described by Porter? Comment on them
briefly in the case of SKK GSB
Session External Perspective: Industry Environment and Competition (II)
6 Readings: - Case: Cola Wars Continue: Coke and Pepsi in 2010 (HBS 9-
711-462)
Questions: - Why, historically, has the soft drink industry been so profitable?
- Compare the economics of the concentrate business to that of
the bottling business: Why is the profitability so different?

Session Internal Capabilities, Environmental change, and Survival (I)

7 Readings: - Value Innovation: The Strategic Logic of High Growth (HBR,
R0407P-PDF-ENG)
Questions: - How can an established company become a value innovator?

Session Internal Capabilities, Environmental change, and Survival (II)

8 Readings: - Kodak and the Digital Revolution (HBS 9-705-448)
Questions: - What were Kodak’s core capabilities?
- How sustainable are business schools in the face of online
education? Make a parallel with Kodak and digital imagery.
Session Strategic Innovation Simulation - Back Bay Battery
9 & 10 Readings: - Simulation foreground reading: Back Bay Battery, Inc.
- Understand the technology disruption slides from Session 8.
Session In-class presentations of Group Assignment
11 & 12 Readings: - Presentation and reports of all other groups
Questions: - Prepare at least 1 critical question for each other group
Session Implementation: Choosing a Strategy
13 Readings: - BCPC Internet Strategy Team: An Exercise (HBS 604035)
Questions: - Prepare the questions in the exercise
Session In-class Exam
14 Readings: - Do I really need to say this...? All class contents AND bring
your laptop
Questions: - I accept bribes in .beer format in exchange for this