3.1.2 Theories of corporate strategy

Question 1

What is a Corporate Stratergy?

Answer 1

Corporate strategy is the course or route that a business has chosen to follow in order to achieve its corporate objectives

Question 2

Ads and Disads of Market Penetration?

Answer 2

+ Gain Market share from competitiors

• Relatively short term only
• Market may already be saturated

Question 3

Ads and Disads of Market Development?

Answer 3

+ Enter international market
+ Change promotional tactics

• the product might not be desierd
• Business might not understand the market (Lack of awarenessa)

Question 4

Ads and Disads of Product Development?

Answer 4

+ Introduce complementary products

• Risk of cannibalisation
• Expensive (Market research, product reasearch)

Question 5

Ads and Disads of of Diversification?

Answer 5

+ Accusation of another business

• Relies of investments
• Cultiral diffrences might exist

Question 6

Michael Porters Strategic Matrix is?

Answer 6

A matrix that categorises the marketing strategies a business can adopt to try and achieve a competitive advantage

Question 7

What does Michael Porters Strategic Matrix analyse?

Answer 7

Low cost VS Differentiation

Question 8

What are the 4 areas of Michael Porters Strategic Matrix?

Answer 8

Cost Leadership
Focused Cost Leadership
Differentiation
Focused Differentiation

Question 9

What is product portfolio anaysis?

Answer 9

Looks at the range of products and brands that a businesss has under its control.