Business Growth and Competitive Advantage Flashcards
what are business growth objectives?
Profit, low costs, market power, risk and managerial
what is organic growth
Growth within the business e.g. increasing capacity, launching new products etc
what is external growth
Mergers/ takeovers
what does the product lifecycle concept help
new marketing strategies
what is innovation
Practical application of new inventions into marketable products/ services
what is invention?
The formulation of new ideas for products/ processes
what is vertical integration?
Businesses merging who are in the same industry but at different stages of supply chain (Forward= closer to consumer, Backward= closer to raw materials)
what is horizontal integration?
Give an example
Businesses at the same stage of production in same industry.
Amazon and Lovefilm
What is a joint venture?
When businesses merge to pursue a common project but are separate legally
e.g. google and nasa for google earth
what is a conglomerate?
A large number of diversified businesses
why do takeovers/ mergers fail?
Huge costs, different technologies, raising share price, clashes is CC.
