Wednesday, 25 December 2024

A note on literature synthesis and conceptual framework construction: for MBA students

A note on literature synthesis and conceptual framework construction: an example for MBA students. This exercise makes use of poe.com.


My question 1: "Could you tell me 5 ideas underlying each of the four theories of (1) the 5-Force Model of Michael Porter, (2) the Value Chain Model of Michael Porter, (3) the Core Competence Model and (4) sustainable competitive advantage as well as 4 main contemporary strategic management topics facing the Hong Kong retail sector?"

The reply: "Here’s a breakdown of the five ideas underlying each of the four theories, followed by contemporary strategic management topics relevant to the Hong Kong retail sector.


1. Five Forces Model (Michael Porter)

Competitive Rivalry: The intensity of competition among existing firms affects pricing and profitability.

Threat of New Entrants: Barriers to entry determine how easily new competitors can enter the market.

Bargaining Power of Suppliers: Powerful suppliers can influence prices and terms, impacting profitability.

Bargaining Power of Buyers: Buyers with strong negotiating power can drive prices down and demand better quality.

Threat of Substitute Products: The availability of alternative products can limit pricing power and market share.

2. Value Chain Model (Michael Porter)

Primary Activities: These include inbound logistics, operations, outbound logistics, marketing and sales, and service, which directly add value.

Support Activities: These include firm infrastructure, human resource management, technology development, and procurement, supporting primary activities.

Cost Advantage: Efficient management of the value chain can lead to lower costs and higher margins.

Differentiation: Unique activities in the value chain can create competitive advantages through differentiation.

Value Creation: The model emphasizes how each activity can contribute to overall value creation for customers.

3. Core Competence Model

Unique Skills and Resources: Core competencies are distinct capabilities that provide competitive advantages.

Customer Value: They must deliver significant value to customers, differentiating the firm from competitors.

Sustainability: Core competencies should be difficult for competitors to replicate or imitate.

Market Relevance: They should align with market opportunities and customer needs.

Integration: Effective integration and coordination of resources and capabilities are crucial for leveraging core competencies.

4. Sustainable Competitive Advantage

Resource-Based View: Competitive advantages arise from unique resources that are valuable, rare, inimitable, and non-substitutable.

Long-Term Focus: Strategies should be designed for long-term sustainability rather than short-term gains.

Innovation: Continuous innovation is necessary to maintain an edge over competitors.

Adaptability: Organizations must be able to adapt their strategies in response to changing market conditions.

Customer Relationships: Building strong relationships with customers can create loyalty and a sustainable advantage.

Contemporary Strategic Management Topics in Hong Kong Retail Sector

E-Commerce and Digital Transformation: The shift towards online shopping and the integration of technology in retail operations.

Sustainability and Ethical Practices: Increasing demand for sustainable products and ethical business practices among consumers.

Consumer Behavior Changes: Understanding shifts in consumer preferences, especially post-COVID-19, and adapting accordingly.

Supply Chain Resilience: Challenges in global supply chains necessitating more robust and flexible supply chain strategies.

These theories and contemporary topics provide a comprehensive overview of strategic management considerations in the retail sector, particularly in a dynamic environment like Hong Kong."


My question 2: "As a literature synthesis exercise, could you come up with a conceptual coding scheme with 14 codes based on the ideas identified from the 4 theories and 4 strategic management topics above? Tks."

The reply: "Here’s a conceptual coding scheme with 14 codes based on the ideas from the four theories and the four strategic management topics identified earlier:


Conceptual Coding Scheme

Codes from Theories

Competitive Rivalry: Dynamics and intensity of competition within the industry.

Threat of New Entrants: Barriers and challenges for new companies entering the market.

Supplier Power: Influence suppliers have on pricing and terms.

Buyer Power: The impact of consumer preferences and bargaining on pricing.

Substitute Threat: Availability and impact of alternative products on market share.

Value Creation: Activities that enhance customer value within the value chain.

Cost Efficiency: Strategies and practices that minimize costs in operations.

Differentiation: Unique offerings that set a company apart from competitors.

Core Competencies: Unique capabilities that provide competitive advantages.

Resource Sustainability: Management of resources that are difficult to replicate.

Codes from Strategic Management Topics

Digital Transformation: Adoption of e-commerce and digital tools in retail.

Sustainability Practices: Initiatives focused on ethical sourcing and sustainability.

Consumer Behavior: Changes in purchasing patterns and preferences.

Supply Chain Resilience: Strategies to strengthen supply chain operations against disruptions.

This coding scheme can serve as a framework for analyzing literature and synthesizing insights across the identified theories and contemporary topics."


My question 3: "Could you consolidate the fourteen ideas (i.e. codes) into 5 related categories and present these categories in a systemic diagram form so as to make up a conceptual framework for studying the competitive advantage of the Hong Kong Retail Sector? Tks a lot."

The reply: "Here’s a conceptual framework that consolidates the 14 ideas (codes) into 5 related categories for studying the competitive advantage of the Hong Kong retail sector.


Conceptual Framework

Categories

Market Dynamics

Competitive Rivalry

Threat of New Entrants

Supplier Power

Buyer Power

Substitute Threat

Value Creation

Value Creation

Cost Efficiency

Differentiation

Core Competencies

Core Competencies

Resource Sustainability

Strategic Innovation

Digital Transformation

Sustainability Practices

Consumer Insights

Consumer Behavior

Supply Chain Resilience

Systemic Diagram



Explanation

Market Dynamics: Examines the competitive landscape and external pressures.

Value Creation: Focuses on how companies deliver value to customers while managing costs.

Core Competencies: Identifies unique strengths that provide a competitive edge.

Strategic Innovation: Explores the role of technology and sustainable practices in gaining an advantage.

Consumer Insights: Analyzes consumer behavior and supply chain resilience as critical factors in strategic planning.

This framework offers a structured approach to understanding the competitive advantage in the Hong Kong retail sector."


Remark: this conceptual framework can be refined and then employed to conduct theory-driven analysis, mainly using the deductive reasoning approach, on the research methods findings of a dissertation project.



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