Chapter 5 Flashcards
What is a business level strategy?
A business overall competitive theme, the way it positions itself to gain competitive advantage, and the different positioning strategies
What is the low-cost - differentiation trade offs?
Business usually have to pick whether they want to focus on low cost, low differentiation, or high cost, high differentiation. Sometimes middle group CAN exist (e.g. Safeway due to location) but if not, the middle one usually gets burn
What is market segmentation?
The way companies decide to group customers based on important differences in their needs, in order to gain competitive advantage
What is standardization strategy?
When company ignores the different segments and create a standardize product that cater to the average customers
What is a segmentations strategy?
When company decides to serve many segments or even the entire market by producing different offerings for different segments
What is a focus strategy?
When company decides to serve a limited number of segments or just one segment
What is a generic business-level strategy?
Strategy that gives a company-specific form of competitive position and advantage resulting in an above average profitability
What is a broad low-cost strategy?
When a company lower their cost so that they can lower their price and maintain profit
What is a broad differentiation strategy?
When a company differentiates its product in the same way - offering different products to each segment
What is a focus low-cost strategy?
When a company target a specific segment or niche and try to be the low cost player in that niche
What is a focus differentiation strategy?
When a company targets a certain segment or niche and customizes its offering to the needs of that particular segment through additional features and functions
The 4 Alterations for the blue ocean strategy?
Eliminate, Reduce, Riase, Create
