IILM Institute for Higher Education

Module Manual: The Competitor Academic Year: PGP 2012-2014

1. Introduction to the Module and Module Objective

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The business environment is increasingly getting very competitive. The disruptive force of competition is originating globally and with changes in technology and better way of doing business. The very survival of business organizations depends on understanding competition and creating a roadmap to fight competition effectively. The changes in market structure, technological innovation and cross border trade are leading new ways of competition which both small and big companies have to contend with. Availability and accessibility of information at a much lower cost is changing the rules of the game. This course enables students to be better managers by equipping them to: Identify key players in the environment both from a competitive and a corporation perspective. Identify the objectives and constraints of those players given the environment in which a managers own organization and competing organizations are embedded. Anticipate the likely actions that competitors will take given their objectives and constraints. Recognize and generate strategies to manage the feedback among ones own actions and the actions of other agents. The course explicitly recognizes that relevant players in the environment include government and nonprofit organizations as well as corporations, and that these players act both cooperatively and competitively toward one another. Thus, an important premise of this course is that the environment within which organizations compete is complex, encompassing not only the market but political, cultural and legal dimensions. Finally, the course explicitly draws attention to the fact that objectives and constraints arise not only from the external faces of the environment but from internal features of the organization. Over the twenty four sessions, the course will draw from the disciplines of economics, accounting, marketing, organizational behavior, and politics.

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2. Introduction to the Tutors

2.1 Area Chair Name : Prof. Abhijit Mukhopadayay Email ID : abhijit.mukhopadayay@iilm.edu Phone: 2.2 Tutors 1. Prof. Rahul K. Mishra Email- rahul.mishra@iilm.edu Phone: 9958231495 2. Prof. Anomitro Bhattacharyya Email: anomitro.bhattacharyya@iilm.edu Phone 3. Mr. Dinesh Kumar Email- dinesh.kumar@iilm.edu Phone: 3. Module Pre-Requisites- The course draws from disciplines like strategy and economics. The students should have done the following courses well, such as: Basics of Economics Basics of Marketing Understanding Organization Basics of Accounting

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4. Module Overview Session No 1 Introduction to The Competitor Perspective 2 Reading: HBR Ten Must Reads on Strategy 3 4 Competitor Intelligence Preparing a memo for your company in Indian Banking Industry Topic Faculty

competitive advantage

Competitive advantage : Strategy the India way

7.

Case study: Nokia : The burning platform Rahul K. Mishra / Dinesh Kumar/Annumitro Bhattachrayya

8 9 10 11

Competitive Strategies and Rules case study- HCL Technologies Slaying the giant Article on Samsung and how they defeated big companies

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Reputation and Identity as advantage and constraint

13 14

Case study : The House of Tata Motivations of the rivals

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Activity on interpreting the strategic decisions of the company

16 17 18

Competing and Co-operating Activity The Complexities of forming an alliance

19 20

Case study Walmart- Bharti Using consumer insights to gain competitive advantage

21

social responsibility as competitive advantage

22 23 24

Activity and Presentation Rethinking the Game Lecture 14- Debriefing the module Summing up Key Learning- Application in job interview

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5. Module Readings It is important that you read widely for this course, to remain abreast of latest developments in Competitive Environment. The prescribed books and readings will provide a good theoretical construct in support of the course. This is further supplemented with reading of journals and web resources to understand the complexity of Competition

5.1 Essential Readings

The Economics of Strategy by Besanko, Dranove, Shanley and Schaefer (BDSS), 5th ed. HBR Ten Must Reads on Strategy ( To be available on Moodle) Strategic Management : A south Asian perspective by Hitt, Ireland, Hoskisson, Manikutty Competing for the future : Gary Hamel & C.K. Prahalad Crafting and Executing Strategy The Quest for Competitive Advantage, Thompson, Strickland, Gamble and Jain, Sixteenth Edition, Strategic Management : Wheelen and Hunger and Kris Rangrajan

5.2 References

Strategy and the Business Landscape, Pankaj Ghemawat, 3rd ed. Pearson Education Sharon Osters Modern Competitive Analysis Co-opetition, Adam Brandenburger and Barry Nalebuff (BN) Strategic Management by Saloner, Shepard and Podolony

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6. Session Plan Session 1Introduction to the competitor perspective

Learning Objective: An Introduction to the competitor perspective and to know the business landscape through interplay of different players in the business environment. Essential Reading: Competition and Market Power, in Varian, Farrell and Shapiro, The Economics of Information Technology, 2004 (Available on Moodle in the course pack) Learning Outcome: Students will be able to identify the key players for competition and co-operation and the rationale of the module.

Session 2:

Classic Articles of Harvard Business review

Session objective: In this session we will understand the concept of competition and its relevance in today's competitive environment. Essential Reading: HBR Ten Must Reads on Strategy (Available on Moodle in the course pack) Desired Reading: Note on technique for analyzing Business Problem by Michael J Robert Learning outcome: students will be able understand the classic article on strategy and competition and key issues around it.

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Session 3: Competitor Intelligence Learning Objective : students will know sources to get to know the knowledge about competitors and to compare the position of their organization in relation to its competitors. Essential reading : : 1. Five forces that shape Industry by Michael Porter , in HBR ten must reads on strategy 2. Mirror, Mirror: How to enhance the execution Premium process with competitive intelligence by Leonard Fuld et all, Harvard Business Publishing 3. Note on technique for analyzing Business Problem by Michael J Robert

Learning outcome: students will be able to understand the industry structure and also the competitive landscape of a particular industry

Session 4: Competitor Intelligence Learning objective: student group will make presentation on Indian banking industry after selecting one private sector bank We will be looking at data from the banking industry. Choose one of the following four firms: ICICI BANK, HDFC BANK, AXIS BANK, KOTAK MAHINDRA BANK Download the most recent ANNUAL REPORT for your firm. You will be focusing on the financial data contained in these reports. Using SECONDARY SOURCES provide you with benchmark financial data for the industry that you can use to analyze your own firm. Prepare a brief memo that uses the financial data to describe the ways in which your firm differs from the average firm in the industry and how those differences fit together and might be connected to an overall strategy that the firm is pursuing. If there are data that
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surprise you in the sense that it does not fit into the overall pattern you should also present this. Learning outcome: students will learn how to do competitors analysis and understand the strength of the firm.

Session 5: Competitive Advantage Learning objective: students will learn the concept of competitive advantage and its sources and how a firm acquires those advantages. They will also debate on the sustainability of these advantages. Essential Reading: Creating Competitive Advantage by Pankaj Ghemawat and Jan Rivkin , Harvard Business School, article Learning Outcome: students will have understanding of as how to create sustainable competitive advantage and also how to extend the advantages in different businesses.

Session 6: Competitive Advantage : The India Way Learning objective: to translate the concept of competitive advantage and its sources to Indian context. How Indian companies drive their competitive advantages Essential Reading: Competitive Advantage: delivering the creative value proposition : strategy the India way : Peter Cappeli , Harbir Singh, Jitendra Singh, Michael Useem, Harvard Business Publishing LEARNING OUTCOME: Students will get to know as how Indian firms are creating competitive advantages in increasingly competitive environment.

Session 7: Case study on Nokia- the burning platform, Harvard Business publishing
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Learning objective: To discuss the case of Nokia and how the competitors are cresting problems for the company. Essential Reading: Nokia case study by Harvard Business publishing

LEARNING OUTCOME: To apply the theoretical concepts of competitive advantages and how it helps companies to gain market share and competitive advantages.

Session 8: Competitive Strategies and rules Learning objective: To know the strategic options which are available for the companies? We will consider pricing, product proliferation and vertical contracts as entry deterrents. This class also explicitly introduces the state in terms of anti monopoly rules framed by competition commission of India. Essential Reading: A play book for strategy by A.G. Lafley and Roger Martin. HBR article Learning outcome- students will be able to analyze different strategic options available to them and also the effect of monopolies and trust laws. Session 9 : Case study on HCL Technologies, Harvard Business Publishing . Learning Objective: Student will learn about the competitive strategies followed by the one of the biggest IT companies in India. To analyze the strategic options available to the company for the growth and to fight increasing competiton.

Essential Reading : Case study on HCL Technologies, Harvard Business Publishing

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Learning outcome: Students will explore the application of the theoretical construct on the case and to discuss the range of options available to the company.

Session 10: Slaying the Giant Learning objective: In a number of markets, we see ways in which early entrants have an advantage. In this lecture, we will explore some of the reasons that early powerful firms sometimes end up losing the competitive battle. Essential Reading: The Rise of Samsung defeating SONY and other established players in consumer durables industry, HBR article Learning Outcome : Students will be able to explore the ways in which established firms can be challenged and the nimbler and smaller firms can find strategies to challenge the giant. Session 11: Seminar on slaying the Giant Learning Objective: To apply theoretical concepts of the strategies which relatively smaller companies and late movers can have to fight established players. Essential Reading: Case study on Dabur, Harvard Business publishing Learning Outcome: Students will know application of theory both in Indian and international perspective through an article and case. Session 12: constraint Lecture: Reputation and Identity as advantage and

Learning objective: Discussion on reputation and identity as a source of competitive advantage and how to create that. Essential Reading: Finding your strategy in a new business landscape by Pankaj Ghemawat, Harvard Business Review.
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Learning Outcome: will learn how to leverage reputation and identity in newly emerging business landscape Session 13 Seminar on Reputation and Identity as advantage and constraint Learning Objective: Application of theory and how the brand name of Tata became important for the group and how the group leveraged the brand name and identity to acquire global brands Essential Reading: Harvard Business publishing case on House of Tatas Learning Outcome: How important in an Indian context to create reputation of trust and leverage in the business context.

Session 14: Motivations of the Rivals Learning Objective: The motivations of your rivals are important in determining their actions. Common assumption in the economics literature is that firms try to profit maximize, albeit with some imperfections in the implementation, and as a first approximation profit maximization often turns out to work very well. The class discussion will go beyond these commonly held assumptions. Essential Reading : Game theory as strategy : Adam Brandenburger and Barry Nalebuff Learning Outcome: Students will look explicitly at the motivations of organizations of varying structures

Session 15

Motivations of the rival

Learning Objective: Before finalizing strategy , students need to see the underlying motivation of the company. Activity: Reflect on an organization you have been part of, either as work or in a board or volunteer capacity. Look at one decision that organization has made
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and use it to make inferences about the underlying motivations of the decision makers in that organization and make a small presentation in the class on that. Has this action been influenced by the decisions of the rivals. Learning outcome : to go beyond the basic economic logic on the motivations of the company and try to see the underlying logic.

Session16 Competing and cooperating Learning Objective: To know the both sides of engagement with the rivals . what it takes to compete and how to decide on cooperation. Essential Reading : Game theory as strategy by Adam Brandenberger and Barry Nalebuff. Following questions need to be looked at : You are a manager for the HT media, the largest daily paper in Delhi. The Mail Today has entered your market. How can you best respond? How can banks (eg. HDFC and ICICI, Kotak Mahindra and Yes Bank) do a better job of cooperating with each other while competing? Where do they cooperate today and what opportunities are they missing? How about Shell and Exxon, Microsoft and Oracle, Barnes and Noble and Amazon? How do you draw a bright line betyween legitimate cooperation and collusion? What types of cooperation do you think will be easy and what types will be hard? Learning Outcome : students will look at cooperation as viable option for strategy in which company gains than merely competing with the rivals.

Session 17

Competing and co operation

Learning Objective : To apply the question with real life business examples to understand co-operation and competition

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Activity: given the questions in the previous class. Students will give small presentations with credible facts and figures. Learning outcome: To understand how Indian and International firms are competing and cooperating as part of their strategy.

Session 18: The complexities of forming an alliance Learning Objective: Looking at different options of forming an alliance and also the strengths and weaknesses of business alliance Essential Reading: Simple rules of making an alliance work by Johnathan Huges, HBR article Learning Outcome: The problems and opportunities in a business alliance

Session 19: The complexities of forming an Alliance Learning Objective: to apply the theory of forming an alliance on the success and the problems faced by alliance Essential Reading : Harvard case on Bharti Walmart alliance in Indian retail industry Learning Outcome: Students will know the Indian retail industry and the importance and complexities of an alliance Session 20 Using Consumer Insights to Gain Differentiation Advantage Learning Objective: From packaged goods to high tech products and financial services, firms face the problem of trying to differentiate their products and services when the underlying assets and activities are seemingly easy to replicate. In many markets, customer insights can help to Identify features that create competitive advantage Essential Reading: Fundamental Dimensions of Strategy: Frederic Frery HBR article Learning Outcome: How to differentiate and brand to create competitive advantage.
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Session 21 : Social Responsibility as competitive advantage Learning objective: How socially responsible actions create competitive advantage and to sensitize the impact of these actions as important aspect of strategy. Essential Reading: Tatas website on CSR activities done by Tata as Group Company Learning outcome: How to incorporate and leverage CSR activities as differentiating factor

Session 22- Social responsibility as competitive advantage Learning Objective : To apply the theoretical concept on the companies Activity: Read Annual reports of HUL, ITC, Tata Group of companies, ReckittBenkiser, ICICI Bank Bharti-Airtel , HCL Technologies and Asian Paints. Groups will make presentation on CSR activities of above mentioned companies and also how these companies are using this as differentiating factor Learning outcome: To incorporate the strategy to gain competitive advantage. Session 23: Rethinking the Game Learning Objective use of game theory and other essential factors for the company to reconfigure the game of competition Essential Reading Game as strategy by Adam Branderburger and Barry Nalebuff

Learning outcome to broaden the concept of competition and how to survive in an uncertain Environment.
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Session 24- Wrapping up the subject , key applications of the knowledge and skills in job interview, interconnectedness of all topics.

7. Assessment Plan o Individual Case Analysis & written submission (20 marks) o Group Activity and Presentation( 10 Marks) Details of Assessment

Individual Case Analysis & written submission (20 marks) Case analysis is tool to develop students abilities to select, evaluate and apply concepts, models and theories covered in the course. It is mandatory for all students to read and analyze and write the case mentioned before the scheduled day of submission. The write up has to be submitted before the case discussion in class. The word limit is of 1000 words. This will be given in hard copy. The business situations presented in the cases may be complex and frequently involve a series of interrelated problems. Therefore, the students are expected to follow these guidelines: Read the case twice Identify the key issues; Do an analysis by looking at the data and the hard facts and apply the concepts covered in the lectures Identify the various alternative solutions that the company could potentially pursue Propose your solution to the problems which have been identified. You should back up your argument based on hard facts given within the case or from outside sources but relevant to the case. The two cases which will be taken up for this purpose are HCL Technologies and Bharti-Walmart. The write up is for 7 marks each and class participation is for 3 marks each. Session 9 and 19 will be used for this purpose.

Group Activities and presentation (10marks)- The group activities in session 4 and 22 are going to be marked. The groups of 4 will make presentation for five minutes based on five important points identified by the group. The written submission has to be given before
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presentation. The word limit is 500 words. Each activity has been given 5 marks for this purpose.

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8. Assessment 8.1 Assessment Map This table shows main assessment methods which are used across module and its stages: Methods of Assessment Module r A1 A2 A3 A4 A5 *

Competito *

Notes: A1: Individual test/ Assignment A3: Open Book Examination A5: Group Presentation A2: Group Assignment/ Project A4: Close Book Examination

8.2 Teaching Map This table shows main delivery methods which are used across module and its stages: Methods of Delivery Module Competito r T1 * T2 * T3 T4 * T5 * T6

Notes: T1: Lectures T3: Live Projects & Presentations T5: Guest Lectures/ Industrial Visits
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T2: Seminar/ Tutorials T4: Case Discussion T6: Lab Session

8.3 Curriculum Map

This table shows the main learning outcomes which are developed and/or assessed in this module:

Methods of Delivery Module The Competitor L1 * L2 * L3 * L4 * L5 * L6 * L7 * L8 L9 *

Notes: L1: An understanding of organizations, their external context and their management. L2: An awareness of current issues in business & management which is informed by research & practice in the field. L3: An understanding of appropriate techniques sufficient to allow investigation into relevant business & management issues. L4: The ability to acquire & analyze data and information. L5: The ability to apply relevant knowledge to practical situation. L6: The ability to work & lead effectively in a team based environment. L7: An improvement in both oral & written communication skills.
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L8: Be cognizant of the impact of their individual & corporate actions on society and recognize ethical business practices. L9: Be sensitive to the social economic and environmental responsibilities of business.

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Case No.

Title

Topic Discusse d

No of pages

Shared/ isolated

Cases 1. Nokia : the burning platform 9 Isolated

2 3.

HCL Technologies, Harvard Business Publishing Dabur India , Harvard Business Publishing

20 20

4. 5. .

House of Tatas Bharti-Walmart

22 22

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Essential Readings 1. 2. HBR Ten Must Reads on Strategy Competition and Market Power, in Varian, Farrell and Shapiro, The Economics of Information Technology, 2004 1 2 276 10

3.

Mirror, Mirror: How to enhance the execution Premium process with competitive intelligence by Leonard Fuld Creating Competitive Advantage by Pankaj Ghemawat and Jan Rivkin , Harvard Business Review, article

4.

5.

Competitive Advantage: delivering the 21/23 the creative value proposition : strategy India way : Peter Cappeli , Harbir Singh, Jitendra Singh, Michael Useem, Harvard Business Publishing

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