3.1.2. Corporate Strategy

Question 1

Corporate strategy

Answer 1

Overall medium to long term plan for achieving the corporate objectives. Addresses major issues for a firm such as what to sell, who to sell to,

Question 2

Porters(Generic) Strategy Matrix

Answer 2

Type of corporate strategy is long term competitive advantage.
Low cost operator High differentiation

Mass Low Cost Differentiation
Market

Niche Focused Low Focused
Market Cost Differentiation

Clear on core strengths like innovative R&D, hugely committed staff or creative marketing can help provide competitive edge over rivals.

Question 3

Ansoffs matrix

Answer 3

Existing New
Products Products

Existing Market Product
Markets Penetration Development

New Market Diversification
Markets Development

Question 4

Market penetration

Answer 4

Lowest risk strategy
Involves boosting Market Share by:
-Finding new customers within target market
-Taking new customers from competitors
-Increasing usage of product among existing customers

Question 5

Market development

Answer 5

-Aiming existing products into new market
-Risk is that company may not understand consumer behaviours in new market they are entering
-Market research useful to an extent but entering new market should be based on careful assessment of markets attractiveness

Question 6

Product development

Answer 6

-Already familiar with customers needs,wants and preferences.
-Making new changes to existing product or completely launching new products which is more risky

Question 7

Diversification

Answer 7

Most risky but if done successfully brings high rewards of new opportunities