Business Strategy Flashcards
Competitive and cooperative strategies that emphasize improvement of the competitive position of a corporation’s products or services in a specific industry or market segment
Business Strategy
The active cooperation of firms within an industry to reduce output and raise prices in order to get around the normal economic law of supply and demand. This practice is usually illegal.
Collusion
a unifying theme
Common Thread
the breadth of the company’s or business unit’s target market.
Competitive Scope
Strategies that involve working with other firms to gain competitive advantage within an industry.
Cooperative strategies
An industry in which a few large companies dominate.
Consolidated industry
Strategies that involve working with other firms to gain competitive advantage within an industry.
Cooperative strategies
A low-cost competitive strategy that concentrates on a particular buyer group or geographic market and attempts to serve only that niche.
Cost focus
A low-cost competitive strategy that aims at the broad mass market.
Cost leadership
A competitive strategy that is aimed at the broad mass market and that involves the creation of a product or service that is perceived throughout its industry as unique.
Differentiation
A differentiation competitive strategy that concentrates on a particular buyer group, product line segment, or geographic market.
Differentiation focus
The ability of a company to provide unique and superior value to the buyer in terms of product quality, special features, or after-sale service
Differentiation strategy
The first company to manufacture and sell a new product or service.
First mover
An industry in which no firm has large market share and each firm serves only a small piece of the total market.
Fragmented industry
An independent business entity created by two or more companies in a strategic alliance.
Joint venture
Companies that enter a new market only after other companies have done so.
Late movers
An agreement in which the licensing firm grants rights to an other firm in another country or market to produce and/or sell a branded product.
Licensing arrangement
A strategy in which a company or business unit designs, produces, and markets a comparable product more efficiently than its competitors.
Lower cost strategy
Tactics that determine where a company or business unit will compete.
Market location tactics
Partnership of similar companies in similar industries that pool their resources to gain a benefit that is too expensive to develop alone.
Mutual service consortium
an extremely favorable niche
propitious niche
A chart that summarizes an organization’s strategic factors by combining the external factors from an EFAS table with the internal factors from an IFAS table.
SFAS (Strategic Factors Analysis Summary) matrix
A partnership of two or more corporations or business units to achieve strategically significant objectives that are mutually beneficial.
Strategic alliance
often referred to as strategic planning or long-range planning, is concerned with developing a corporation’s mission, objectives, strategies, and policies.
Strategy formulation
Identification of strengths, weaknesses, opportunities, and threats that may be strategic factors for a specific company.
SWOT analysis
A short-term operating plan detailing how a strategy is to be implemented.
Tactic
Tactics that determines when a business will enter a market with a new product.
Timing tactics
A matrix that illustrates how external opportunities and threats facing a particular company can be matched with that company’s internal strengths and weaknesses to result in four sets of strategic alternatives.
TOWS matrix
A strategic alliance in which one company or unit forms a long-term arrangement with a key supplier or distributor for mutual advantage.
Value-chain partnership
a unique market opportunity that is available only for a particular time.
Strategic Window
dominated by a few large companies.
consolidated industry
The attacking firm goes head to head with its competitor.
Frontal assault
a type of tactic that usually takes place in an established competitor’s market location.
offensive tactic
a type of tactic that usually takes place in the firm’s own current market position as a defense against possible attack by a rival.
defensive tactic
Rather than going straight for a competitor’s position of strength with a frontal assault, a firm may attack a part of the market where the competitor is weak.
Flanking maneuver
Rather than directly attacking the established competitor frontally or on its flanks, a company or business unit may choose to change the rules of the game.
Bypass attack
Usually evolving out of a frontal assault or flanking maneuver, encirclement occurs as an attacking company or unit encircles the competitor’s position in terms of products or markets or both.
Encirclement
Instead of a continual and extensive resource-expensive attack on a competitor, a firm or business unit may choose to “hit and run.”
Guerrilla warfare
According to Porter, this aim to lower the probability of attack, divert attacks to less threatening avenues, or lessen the intensity of an attack.
Defensive Tactics
This tactic is any action that increases the perceived threat of retaliation for an attack.
Increase expected retaliation
A third type of defensive tactic is to reduce a challenger’s expectations of future profits in the industry.
Lower the inducement for attack
