3.8.1 Stratgic Direction: Choosing Which Markets To Compete In And What Products To Offer Flashcards
What does market penetration involve?
Trying to increase market share in the existing market.
What is new product development?
Is selling new products in your existing market
What is market development or extentsion?
Selling existing products to new markets
What is diversification?
Selling new products to new markets
What are the four areas of ansoffs matrix?
-Market penetration
-product development
-market development or extension
-diversification
Describe porters genetic strategies to gain competitive advantage
-Cost leadership: calls for the lowest cost of production for a given level of quality
-differentiation: products with unique attributes that a consumer would value
-focus: concentrates on niche markets
What are the four areas on porters strategic matrix?
-Costs leadership
-differentiation
-cost, focus
-differentiation, focus
What is retrenchment? And how can it be done?
That the business will have to downsize in some areas could be done by cutting jobs, withdrawing from markets.
What is diseconomies of scale?
Makes units cost increase as the scale of production increases