Briefing Reading Assignment Example | Topics and Well Written Essays - 500 words - 1

Briefing Reading - Assignment Example According to Miller et al (2010: p.273) these firms began by discovering their hidden resources, also called asymmetries, which included building on their own unique potentials, relationships, hard-to-copy assets, knowledge and experiences. Over time, these firms were able to develop several organizational processes and designs in order to find these asymmetries, turn them into capabilities and gear them across the necessary market opportunities. As stated by Miller et al (2010: p.274), they asymmetries are hard-to-copy ways that create a difference between a firm and its rivals. For this reason, Reed discovered that his bank was different and developed ways to make that difference a valuable asymmetry that his rivals would not copy and later found a profitable market that valued it. Shana Corp, a private Canadian software company, exhibit a similar path to that of Citibank. Over time, the managers of Shana realized that the company had developed unique capabilities, which included valuable kinds of work that its rivals could not do as fast or better. This allowed the company to exploit and extend its competitive advantage over other firms. In short, the managers of Shana were able to focus on what the company was able at, reflected on it, developed and found clients that would benefit from its new capabilities (Miller et al (2010: p.274). There are three imperatives of inside-out strategy, which include discovering of asymmetries and their potential, creating capability configurations by design, and pursuing market opportunities that build on and leverage capabilities (Miller et al, 2010: p.275). It is difficult for firms to develop their hidden resources unless they have some potential edge. For this reason, firms need first to discover their asymmetries and potentials, which will serve as starting points for creating advantages as they are hard to copy. Thus, to find potential asymmetries, managers are required to do an outside and

Market Structure Essay Example | Topics and Well Written Essays - 3500 words

Market Structure - Essay Example Characteristics of Perfectly Competitive Market In a perfectly competitive market, a large number of buyers are willing to buy products and services at a certain price level and a large number of sellers are willing to sale those products and services for the specified price level. All firms are price taker in perfectly competitive market, having a relatively small market share and operating in a profit maximization motive. Profit is maximized in that point where marginal revenue meets marginal cost (Stackelberg, Bazin, Hill and Urch, 2010). There are no barriers to entry and exit for firms into the industry. All factors of production are perfectly mobile in long run perfect competition. Complete information is available to the consumers in terms of product quality, method of production, price of competitors. Purchasing behaviour of the buyers is rational as all information is available to them. Market cannot be affected by any externalities. Buyers are well aware about their market rights. Therefore, no cost of benefit can influence one party to harm the other party. Firms are engaged in producing homogeneous goods which are hardly differentiated in terms of price level and quality. Economies of scale is absent in this market structure as a result of continuance of a large number of buyers and sellers. There is no transaction cost is perfect competition. Hence no cost is involved in exchanging goods in this type of market structure. Local fish or vegetable market is a perfect example of this kind of market structure (Stackelberg, Bazin, Hill and Urch, 2010).