3.8.2 choosing to compete

Question 1

what is strategic positioning?

Answer 1

how it is perceived relative to other businesses in the industry

Question 2

what is a competitive advantage?

Answer 2

an advantage a business has over its competitors gained by offering customers greater value, either through lower prices or offering benefits that justify higher prices

Question 3

Porters Generic Strategies:

Answer 3

balances the markets where businesses compete (broad/narrow) and the source of the competitive advantage (differentiation/costs)

cost leadership, cost focus, differentiation leadership, differentiation focus

Question 4

what is a cost leadership strategy?

Answer 4

involves becoming the lowest cost organisation in the industry.
may be achieved through lower input costs, economies of scale, experience, product/process design.

Question 5

what is a differentiation strategy?

Answer 5

occurs when a business provides some degree of uniqueness relative to its competitors

Question 6

Bowman’s Strategic Clock:

Answer 6

outlines different strategies in terms of perceived value and price

Question 7

what does the bowman’s strategic clock show?

Answer 7

different strategies can be competitive
some combinations of benefits and price are not competitive

Question 8

influences of the choice of positioning strategy:

Answer 8

where competitors are positioned
the external environment
strengths and core competencies of the business