Chapter 2 - Definitions Flashcards
A request from a buying organisation to invite suppliers to formally quote on a large scale project.
Tendering process
A strategy used by businesses in order to gain competitive advantage by having the lowest cost of operation within their particular industry.
Cost leadership
When a product or brand stands out as being unique to customers when compared to its competitors.
Differentiation
Competition between companies, usually within the same industry.
Rivalry
The network used to get a product or service from the manufacturer or creator to the end user or consumer. It can include wholesalers, agents and retailers and can include online channels.
Distribution channels
When a product is sold for a higher price than its competitors.
Premium price
The relative ability of one party to exert influence over another in a negotiation or commercial dealing.
Bargaining power
Strategic tool to help managers recognise the weaknesses of their organisation and form strategies to guard against disruption of suppliers.
Kraljic matrix
The manner in which customers purchase goods or services.
Order patterns
A marketplace involving individual consumers rather than businesses or companies.
Consumer markets
When products are sold directly to consumers rather than through retailers.
Direct marketing
Goods which, as a result of changed conditions, may replace each other in the market.
Substitutes
Obstacles that prevent a business from leaving an industry.
Exit barriers
People who like to be the first to try new ideas, goods and services.
Innovators
A group of consumers who are the first after the innovators to buy or use a new product or technology.
Early adopters
