Chapter 6 Flashcards
Blue Ocean Strategy
offer growth in revenue and profits by discovering or inventing new industry segment that create altogether new demand
First mover advantages and disadvantages
competitive advantage can spring from when a move is made as well as from what move is made
Scope of the firm
refers to the range of activities the firm performs internally, the breadth of its product and service offerings the extent of its geographic market presence and it mix of businesses
Horizontal scope:
is the range of product and service segment that a firm serves within its focal market
Vertical scope
is the extent to which a firm’s internal activities encompass one, some, many or all of the activities that make up an industry entire value chain system, ranging from raw material product to final sales and service activities
Merger
is the combining or two or more companies into a single corporate entity with the new created company often taking on a new name
Acquisition
is a combination in which one company the acquirer purchases and absorbs the operations of another, the acquired.
Vertical integration
firm is on that performance value chain activities along more than one stage of an industry overall value chain
Backward integration
involves performing industry value chain activities previously performed by suppliers or other enterprises engaged in earlier stage of the industry value chain
Forward integration
involves performing industry value chain activities closer to the end user
Outsourcing
involves contracting out certain value activities to outside specialist and strategic allies
Strategic Alliance
is a formal agreement between two or more companies to work cooperatively toward some common objective
Joint Venture
a type of strategic alliance that involves the establishment of an independent corporate entity that is jointly owned and controlled by the two partners
