3.1.2- corporate strategy p2 Flashcards
When is cost leadership a useful strategy?
In highly competitive markets where there are homogenous products
When is differentiation strategy useful?
In highly technological markets where there are rapidly changing features of products
When is cost focus a useful stratergy?
When the business wants to offer very low prices to a small market segment
When is differentiation focus strategy useful?
When business wants to offer products to a small market segment
What are two uses of porters strategic matrix?
- establishes a clear direction for the business to go in
- identifies when a business may be in trouble
What are 3 limitations of porters strategic matrix?
- not as relevant in very dynamic markets
- may not be useful in a crisis situation
- over simplifies the market structure
What does cost leadership mean?
Involves striving to be the lowest cost provider in the market
What does differentiation mean?
Involves a business operating in a mass market but adopting something unique
What is focus?
Strategy involves targeting a narrow range of customers
