C6 Competitive Advantage And Stategic Choice

Question 1

BCG matrix- manage their activities
Market growth and Relative market share

Stars
Cash cows
Question marks
Dogs

Answer 1

Stars: HH, good future, will be cash cow

Cash cows: H sure, low growth. Don’t need to invest much so will generate cash income.

Question marks: high growth, low share. Potential for star. If not then sold it rundown.

Dogs: poor return, tie up funds.

Question 2

How to achieve cost leadership

Answer 2

1. Economies of scale
2. Latest tech
3. Labour skills and learning curve effect
4. Improving productivity
5. Minimize overhead costs
6. Source of supply

Question 3

Differentiations: particular characteristics of the product.
What’s the three categories:

Answer 3

1. Breakthrough products
2. Improved product
3. Competitive products (p146)

Question 4

How to differentiate:

Answer 4

1. Build up a brand image
2. Special features
3. Exploit other activities of the value chain
4. IT and innovation
5. Customer relationships
6. Creat complementary products or svs

Question 5

7 Ps

Answer 5

Product
Place
Promotion
Price
People
Processes
Physical evidence