3.8 Strategic Direction

Question 1

Ansoffs matrix

Answer 1

A model used to help a business determine its market and product strategy

Question 2

Porters low cost and differentiation focus strategies

Answer 2

Way of achieving competitive advantage over other firms In a market

Cost focus
Cost leadership - lowest cost operator
Differentiation leadership
Differentiation focus

Question 3

Bowman’s strategic clock

Answer 3

Strategic position of a business on price and perceived value

Low price and value - rola cola

Low price - Aldi

Hybrid - ikea

Differentiation - Starbucks

Focused differentiation - Dior

Risky high margins - high prices with no added value to show , gyms

Monopoly pricing - only one business

Loss of market share - bad accountant