Chap 8: Business Level Strategy Flashcards
This strategy is formulated at the middle level management with strong and close coordination with the corporate and functional levels
Business strategy
Is designed to outperform or battle against all competitors
Competitive strategy
Implies a wider geographic area, several types of buyers, different product lines, and complex distribution channels
Broad market
A business level strategy that enables a company to produce a comparatively similar product, more efficiently than its competitors
Lower cost strategy
Can be adopted by companies that aim to serve a broad target market with low cost products or services
Cost leadership
A strategy that is more appropriate to employ when a companies target market is narrow, and it aims to compete in cost
Cost focus
A company intends to compete using the uniqueness of its product from the perspective of the customers, relative to its value, quality, features, and even the services provided after the sale
Differentiation strategy
Can be in the form of packaging, features, design, technology, brand image, innovation, and customer service
Differentiation
Is strategy designed the serve a wider target market and achieve competitive advantage by offering products which are unique relative to the quality and value from the customers’ view
Differentiation
A competitive business strategy that focuses on the needs of a narrow market by providing a product or service that is differentiated from competitors
Differentiation focus
It aims to achieve competitive advantage by working with other companies
Cooperative strategy
Exists when competitors, expressly or impliedly agree to reduce their production, so that the prices of goods produce will increase or remain high
Collusion
Cooperating companies conspire through direct communication and negotiation
Explicit collusion
Cooperating companies conspire indirectly through informal means
Tacit collusion
A partnership established by similar companies in an industry, who put together their resources, but not their core competencies for a particular project that is too expensive for one company to undertake
Mutual service consortium