CH6 - Competitive Advantage

Question 1

Sustainable competitive advantage

- the 7 P’s

Answer 1

Product
Place
Promotion
Price
People
Processes
Physical evidence

Question 2

Sustainable competitive advantage

- price-based, differentiation and lock-in

Answer 2

• sustaining price-based strategies
• sustaining differentiation
• lock-in is achieved in a market when a product becomes the industry standard

Question 3

Managing organisational portfolios

- BCG matrix

Answer 3

Stars
Cash cows
Question marks
Dogs

Question 4

Porters Generic Strategies

Answer 4

• Cost leadership (lowest cost producer)
• Differentiation (exploitation of a product/service which the industry as a whole believes to be unique)
• Focus (or niche) strategy (restriction of activities to only part of the market)
  => don’t want to be ‘stuck in the middle’

Question 5

Product-market strategy: direction of growth

Answer 5

Growth vector matrix: consists of

• Market penetration
• Product development
• Market development
• Diversification

Question 6

Types of diversification

Answer 6

• related diversification (horizontal and vertical integration)
• unrelated diversification
  => conglomerate diversification

Question 7

International diversification

Answer 7

Management orientation:

• ethnocentrism
• polycentrism
• geocentrism
• regiocentrism

Question 8

Methods of development

Answer 8

• internal development
• business combinations
• partnering
  => external partnering
  => joint ventures
  => franchising
  => strategic alliances
  => internal partnering