Chapter 5

Question 1

Competitive strategies

Answer 1

Low price low benefit - no frills
Low price medium benefit - low price
Low price high benefit - hybrid
Medium price high benefit - differentiation
High price high benefit - focused differentiation

Question 2

Growth strategies - ansoff matrix

Answer 2

Existing product existing market - market penetration
New product existing market - product development
Existing product new market - market development
New product new market - diversification

Question 3

Strategy evaluation - Johnson, Scholes & Whittington SAF

Answer 3

Suitability - is strategy consistent
Acceptability - is strategy acceptable to stakeholders
Feasible - is strategy within resources and capacity of organisation