Strategic competition model

FIGURE 26.1 Mapping Acme s projects to strategic competition model. 

PC and ST refer to two different model scenarios, i.e. perfect competition (PC) and oligopolistic (or strategic) competition (ST). Numbers attached to these abbreviations, such as PCO or PC20, indicate a scenario without emissions trading (C02 price is 0) versus a scenario with emissions trading (at a price of 20/tCO2). The additions ze and le refer to a zero price elasticity and low price elasticity (0.1), respectively, compared with the baseline scenario with a price elasticity of 0.2. 

A traditional strategic assessment gathers together information in the context of the company. But as we move into the new competitive model, we need to think of the organization as including the supply chain as a whole so that our systems become end-to-end solutions and data becomes accessible throughout the supply chain. 

Analytic modeling research in this area is limited. Examples include two competitive models involving products that require after-sales maintenance repair. Cohen and Whang, 1997, used product, price, and quality of aftersales service as strategic decisions and concluded that after-sales service can be used as competitive differentiator. Muithy and Kumar, 2000, developed a game-theoretic model representing the interaction between a manufacturer and a retailer, and studied the relationship between quality of service, quality of performance, and retail price. 

Figure 8.2 Competitive Advantage - Strategic Vulnerability Model Source Lonsdale, C., and Cox, A., Outsourcing. Copyright 1998. Earlsgate Press.

J. A. Trainham, "Modeling A Strategic Tool for Gaining Competitive Advantage", A.spenWorld Conference, Boston, Mass., Nov. 7,1994. 

Table 5.4 applies the model to a few examples of supply chain projects. Just because a project extends beyond the immediate company, it need not be strategic. It could be catch up to reach parity with a more aggressive competitor or of little relevance to competitive position. So, venturing outside the company to do a supply chain project alone is not a prerequisite for a strategic project. 

Cammish And Keough s Procurement Development Model Centralised Distribution Centres and Cross-Docking Competitive Advantage Vs Strategic Vulnerability Contract Price Adjustment Formulae De Toni and Tonchia Model EOQ/EBQ... 

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