Value created:Activities performed that increasethevalue of goods and services to consumers.It is measured by the differences betweenvalue andcost (V-C)Twobasicstrategy:(1)Low coststrategy;MinimumC（低成本战略）(2)Differentiation:MaximumV（差异化战略）
• Value created: Activities performed that increase the value of goods and services to consumers. • It is measured by the differences between value and cost (V-C) Two basic strategy : (1)Low cost strategy ; Minimum C (低成本战略) (2) Differentiation : Maximum V (差异化战略)
6.1.3StrategicPositioning（战略定位）Figure: Strategic Choice in the InternationalHotel IndustrveEfficiencyFrontierFouriSeasonsMarriottStarwoodStrategic Choices inThisArea NotViableinInternationalHotel IndustryLowCost(C)
Figure : Strategic Choice in the International Hotel Industry 6.1.3 Strategic Positioning (战略定位）
StrategicPositioning（战略定位）Michael Porter argues that firms need to choose eitherdifferentiation or low cost, and then configure internaloperationstosupportthechoiceTo maximize long run return on invested capital, firms must:pickaviablepositionon theefficiencyfrontierconfigure internal operations to support that positionhavetherightorganization structurein placetoexecutethestrategyOperation : activities a firm adopt to createvalue
Strategic Positioning (战略定位） Michael Porter argues that firms need to choose either differentiation or low cost, and then configure internal operations to support the choice To maximize long run return on invested capital, firms must: pick a viable position on the efficiency frontier configure internal operations to support that position have the right organization structure in place to execute the strategy Operation : activities a firm adopt to create value
6.1.4 The firm as a value chainSupport ActivitiesCompanyInfrastructureInformation SystemsHuman ResourceLogisticsMarketingCustomerR&DProductionandServiceSalesPrimaryActivities
6.1.4 The firm as a value chain
6.2Profitingfromglobal expandingExpanding the market: Leveragingproducts and competencies（扩大市场：利用国内产品和竞争力）Locationeconomies（区位经济）Experienceeffects（经验效应）Leveragingsubsidiaryskill（利用子公司技术)
6.2 Profiting from global expanding Expanding the market: Leveraging products and competencies (扩大市场：利用国内产品和竞争力） Location economies（区位经济） Experience effects（经验效应） Leveraging subsidiary skill（利用子公司 技术）