Chapter 6, business strategy and models

Question 1

Strategy business units (SBU)

Answer 1

Supplies goods or a service for a distinct domain of activity

Question 2

Competitive strategy

Answer 2

How we achieve competitive advantage

Question 3

Competitive advantage

Answer 3

How we create value for our users

Question 4

Cost-leadership strategy

Answer 4

Lower input costs - Production in China is cheaper

Economies of scale - Cheaper when you are producing more

Experience

Product or process design - Parity and proximity (dollar store

Question 5

differentiation

Answer 5

Product and service attributes - Providing better features

Costumer relationship - Better service then your competitors

Complements - Building on linking with other products

Question 6

Hybrid strategy

Answer 6

Uses 2 strategies at the same time, can be used to enter a market or gain market shares

Question 7

Game theory

Answer 7

Is important when the companies is interdependent. Consider competitors likely moves, important to think forward

Question 8

Business models

Answer 8

Describes a value proposition for customers and other participants, an arrangement of activities that produces this value and associated revenue and cost structure. (How to create value)

Value creation - proposition that addresses a customer segments needs

Value configuration - The way resources and activities are organized to produce this value

Value capture - The way the cost structures and revenue streams create added value for stakeholder

Question 9

Hypercompetition

Answer 9

A lot of competition

Try to stay unpredictable and work fast, small moves and try to trick the competitors

Question 10

Focus strategy

Answer 10

Target a narrow segment of activity and tailors its products to that specific segment.

Can be done with cost focus or differentiation