Discussion Reply: You will reply to one of your classmates’ threads. Minimum of 250 words in the body. Minimum of 2 sources from the literature in addition to course texts. Use bolded headings below i

Discussion Reply:

You will reply to one of your classmates’ threads.

Minimum of 250 words in the body.

Minimum of 2 sources from the literature in addition to course texts.

Use bolded headings below in the reply.

Current APA format must be used.

Use the following Outline:

• Summary - Summarize the author’s original thread in no less than 125 words.

• Critique - Discuss what you agreed with, did not agree with and why in no less than 125

words.

Support all your factual assertions with citations.

Introduction

Competition is prevalent across all aspects of business, from retail and service to manufacturing and distribution. Businesses need to evaluate which of the five competitive strategies they will use and the process for determining which approach to use. The next area to review is the competition's scope, including its geographic scope and production and distribution scope. This discussion will review the decision models and the integration of biblical principles.

Process: Evaluating and Deciding on a Competitive Approach

Businesses are dynamic, and to be competitive, they must evaluate the business landscape in which they operate. Businesses need to decide which competitive Strategy to use. There are five strategies a business could use a low-cost provider strategy, a broad differentiation strategy, a focused low-cost strategy, a focused differentiation strategy and a best-cost provider strategy What is a competitive strategy? "Competitive Strategy deals exclusively with the specifics of management's game plan for competing successfully" (Gamble et al., pg.86, 2024). Businesses need to understand the environment in which they are competing.

They must look at the target market and decide if it is wide or narrow, and also whether they want their competitive advantage to be low-cost or differentiating. There are advantages and disadvantages to using the low-cost Strategy. While organizations that strive to be the low-cost provider can gain an advantage, it can also be a disadvantage if they do not consider all aspects of their supply chain. They could ultimately lose profits because their expenses are higher. This aspect is a business just cutting its prices to be the lowest. The other option for the low-cost provider is to keep pricing but use the lower-cost cost edge to earn profits (Gamble et al. 2024). To differentiate, businesses must have a unique product and know what buyers are willing to pay for it. Understanding your consumers is an important aspect for both strategies. The value chain, cost drivers, and value drivers will support both strategies. With low-cost strategies, businesses can perform activities more efficiently or revamp their value proposition (Gamble et al. 2024). Low-cost strategies look at cost drivers, identify where they can improve, and save money. Verses revamping the value chain could eliminate an intermediary to save money. The low-cost Strategy focuses on cutting prices, and it could cut them too low.

On the other hand, differentiation involves examining the value chain and its value drivers. The value driver affects customer value and creates differentiation (Gamble et al. 2024). The value chain is designed to deliver value to customers. According to Miao (2021), the core of value chain theory is value-added, which is a method for analyzing the competitive environment and the management ability to realize value increment through a series of value activities. While analyzing the competition, businesses need to leverage competitors' weaknesses and understand their place in the industry.

Strategic Thinking: Determining Competitive Scope

Businesses need to be strategic when deciding when to make a move; they must consider the organization's scope. According to Gamble et al. (2024), scope refers to an organization's internal activities, the breadth of its product and service offerings, the extent of its geographic market, and the mix of businesses. We are going to look at horizontal and vertical scope as they relate to geographic scope and product and distribution scope.

Geographic Scope

Evaluating the geographic scope of your business involves assessing the geographic area where your product or service is sold. When an organization wants to expand into other geographic areas, this is a horizontal scope. Horizontal scope is when they expand within their market; this is external. The fastest way to expand geographically is by merging or acquiring another company in your market, or by closing a gap in the industry. Organizations need to know their capabilities within their own companies. The tasks that an organization has performed competently. When acquiring other businesses and growing horizontally, businesses tend to use and leverage similar resources and capabilities (Brahm et al. 2021). By expanding horizontally, they are in the same market segments, so when combining the companies, they have similar capabilities.

Production/Distribution Scope

Production and distribution scope would use a vertical scope. According to Gamble (2024), vertical scope is when the firm's internal activities encompass one, some, or all of the activities that make up the industry's value chain, from raw materials to service activities. Businesses need to decide whether to integrate fully, partially, taper, or go backward. One advantage is that this can increase profits and strengthen market position. A disadvantage of vertical integration is that it may require investment, as new capabilities and additional resources may be needed. According to Brahm (2021), when organizations grow vertically by performing different activities, they need different capabilities, because many capabilities required for one type of vertical activity differ from those required for another.

While horizontal scope is within the organization's skill set, vertical scope can expand into a different area, and that would require investment and a new skill set. Both of these options can create a competitive advantage. According to Rumlet (2011), extending a competitive advantage requires businesses to look beyond products, buyers, and competitors and focus on their unique skill sets and resources. When changing focus, this will allow them to build stronger skill sets and provide better value for consumers.

Decision Model

Many decision models can be used; for example, Gamble (2024) provided several ways to analyze each one of these areas. The SWOT Analysis could be used to examine their strengths, weaknesses, opportunities, and threats. This analysis will provide them with information on their strengths and weaknesses, enabling them to turn their weaknesses into strengths. This is the model I used a lot in management to evaluate the environment, and also had employees use it when doing their own work and reviewing themselves. This assisted with their end-of-year review and also opened it up for discussion. Also, it will show the opportunities they have and help them get ahead of any threats. The next model I will use is Porter's five forces. Porter's Five Forces helps companies understand what their competitors are doing. Companies will be able to tell them which areas they have the greatest competitive advantage in, whether they need to change pricing, or whether new entrants have entered their industry. This will give them more rivalry, a stronger presence, and customer loyalty. It will also show how many resources they have to expand their business, especially if they are doing it vertically. Another model I would use is the Rumsfeld Matrix, which helps analyze risks efficiently. Organizations would examine the knowns and unknowns to determine their next move. "Risk is what remains after we think we've thought of everything" (Krogerus & Tschappeler, 2017). No matter how well we analyze our business, there will always be risk.

Biblical Integration

God is guiding us every day. He calls us to our careers and provides each of us with a gift for that position. We need to depend on Jesus more. According to Keller (2014)," Jesus gave his disciples the big picture; in fact, he was the big picture. He deliberately called them to a kind of fishing beyond their fishing. Luke 5:11 "Don't be afraid; from now on you will fish for the people." As servants of God, we are to serve the people and do what is good for all people. When leaders are making decisions that will affect many people, they need to stay focused on God and for their employees, consumers, and suppliers. We are human, and sometimes we get in the way, and our decisions can be based on selfish thoughts. Such as how I can get a raise or look good. Psalm 32:8 "The Lord says, 'I will instruct you and teach you in the way you should go." (New International Version 2005). Leaders need to stop and listen to what God is saying to them.

Conclusion

This discussion focused on the process of choosing a competitive approach, including a high-level overview of the five strategies. Low-cost and differentiating strategies. How the value chain, cost drivers, and value drivers are important to the different strategies. Next was the geographical and product/distribution scope. Horizontal Strategy was for geography, and vertical Strategy was for product/distribution. Each of these areas needs to look at what their industry was doing, competitors, and their market position. SWOT analysis and Porter's Five Forces were the models I would have chosen for the analysis. Bible integration is that we should lean on God to help with all our decision-making, as we need to do what is right for all, not just a chosen few.

Annotated Bibliography

Miao, Z. (2021). Digital economy value chain: concept, model structure, and mechanism. Informa UK Limited. https://doi.org/10.1080/00036846.2021.1899121Links to an external site.

Summary of Key Points

This study examined the value chain in the digital economy compared to other industries. They examined all activities within the digital economy and value-added activities, as well as the characteristics of the value chain. The digital economy is highly dynamic and diverse, with no rigid boundaries. This economy is a form of data and digital technology as production factors. In the digital economy, this value chain is driven by digital elements such as data and technology and characterized by innovation. It was determined that each value-added link in the value chain will create value and deliver benefits, thereby providing a competitive advantage. This created significant economic and social benefits, but it also poses risks in the cyber domain, where it could disclose or expose consumers' personal information.

Evaluation of Quality of Publication

The publisher Taylor & Francis has a 2024 CiteScore of 4.1, placing it in the 68th percentile. Scopus covers the years 2021 to 2024. Their SJR Score was 0.616, and SNIP Score was 0.893.

They had 7,528 Citations and 1,815 documents from 2021-2024.

Evaluation of Quality of the Author (s)

The author researched a new and upcoming technology that has been evolving since 1996. He looked at concepts, model structure, and mechanisms within the digital economy value chain. This was a literature review, and he analyzed each of these areas and discussed his conclusions for each.

Miao, Z. has an H-2 index of 3 documents and 159 Citations.

Where this fits into the discussion

This article fits into the discussion on a competitive approach regarding the importance of the value chain. The value chain theory adds value to customers. This method examines the competitive environment and management's ability to realize value through activities. This will help. In business, to create competitive advantages.

Brahm, Francisco, et al. "Can firms be both broad and deep? exploring interdependencies between horizontal and vertical firm scope." Journal of Management, vol. 47, no. 5, March 19. 2021, pp. 1219–1254, https://doi.org/10.1177/0149206320912296.

Summary of Key Points

This article reviewed whether a company can be broad and deep. It reviewed interdependencies between horizontal and vertical firm scope. This research was based on the Chilean construction industry to see if there were dependencies between horizontal and vertical scope. They used several variables in this study. They determine that under these two scopes, depth and breadth are independent. Vertical capabilities impact depth, and horizontal capabilities impact breadth. There was negative interdependence when the coordination strategy constrained executive capabilities. Therefore, if a company used both vertical and horizontal approaches, it would need to understand the scope of potential barriers. They conclude that vertical scope and horizontal scope are independent of each other.

Evaluation of Quality of Publication

The publisher Sage has a CiteScore of 24.9 and, as of 2024, is in the 99th percentile. They are a reputable source. Scopus covers the years 2021 to 2024. Their SJR Score was 8.636, and SNIP Score was 5.747.

They had 8,081 Citations and 324 documents from 2021-2024.

Evaluation of Quality of the Author (s)

This research was conducted to determine if firms can be both broad and deep. They explored vertical and horizontal scope to identify any interdependencies. They used a hypothesis and reviewed the capabilities as drivers of scope choices, executive capabilities, and scope and organizational structure, and the trade-off between horizontal breadth and vertical depth. The empirical setting they used was the Chilean construction industry, focusing on contractors building multiple residential or construction projects.

Brahm, F. has an H–Index of 17, with 17 documents and 308 Citations.

Parmigiani, A. has an H-14 index – 21 documents and 2,084 Citations.

Tarzijan, J. has an H-12 index of 22 documents and 551 Citations.

Where this fits into the discussion

This fits into the discussion under both areas of scope. The horizontal scope shows that this scope's value is that they currently have the capabilities and resources to merge or acquire a business in the same industry. It also fits with the vertical scope because it shows that companies will need to invest in a different skill set and capabilities, as this might be a new area for them.

References

Brahm, Francisco, et al. "Can firms be both broad and deep? exploring interdependencies between horizontal and vertical firm scope." Journal of Management, vol. 47, no. 5, March 19. 2021, pp. 1219–1254, https://doi.org/10.1177/0149206320912296.

Gamble, J., Peteraf, M. A., & Thompson, A. A. (2024). Essentials of strategic management: The quest for competitive advantage. McGraw-Hill LLC.

Keller, T., & Alsdorf, K. L. (2014). Every good endeavour: Connecting your work to God's plan for the world. Hodder & Stoughton.

Krogerus, M., & Tschäppeler, R. (2017). The decision book: Fifty models for strategic thinking. Profile Books.

Miao, Z. (2021). Digital economy value chain: concept, model structure, and mechanism. Informa UK Limited. https://doi.org/10.1080/00036846.2021.1899121Links to an external site.

Rumelt, R. P. (2011). Good Strategy, bad Strategy: The difference and why it matters. Crown Business.

The Holy Bible: New International Version. (2005). Zondervan.