Consulting Cards 2 Flashcards
Open Innovation
The practice of sourcing ideas, technology, and knowledge from external partners and stakeholders to enhance internal innovation and growth.
Intrapreneurship
The act of fostering entrepreneurial skills and initiatives within an existing organization by encouraging employees to innovate and develop new products or processes.
Corporate Venturing
The process where large corporations invest in or collaborate with startups and smaller businesses to access new technologies, markets, or business models.
Growth Hacking
A marketing technique focused on rapid experimentation across different strategies and channels to quickly grow a business or product.
Product-Led Growth (PLG)
A business strategy where the product itself drives customer acquisition, expansion, and retention, often through freemium models or viral adoption.
Value-Based Selling
A sales approach where the focus is on the value a product or service provides to the customer, rather than its features or price.
Solution Selling
A sales methodology where the seller focuses on the customer’s needs and offers tailored solutions to their specific problems, rather than simply selling a product.
Account-Based Marketing (ABM)
A highly targeted marketing strategy where businesses focus on individual high-value accounts, treating them as markets in themselves.
Content Personalization
The practice of tailoring content to the individual needs, preferences, and behaviors of customers, often using data analytics.
Customer Data Platform (CDP)
A software system that centralizes customer data from multiple sources to provide a unified, real-time customer profile for better marketing and personalization.
Social Selling
The practice of using social media platforms to find, connect with, and nurture sales prospects by sharing relevant content and engaging directly with them.
Sales Enablement
The process of providing sales teams with the tools, content, training, and information they need to effectively engage prospects and close deals.
Channel Conflict
A situation where sales channels (e.g., direct sales, partners, or distributors) compete against each other, potentially hurting the company’s overall sales.
Sales Incentive Plan (SIP)
A compensation plan designed to reward sales teams based on their performance, typically through commissions, bonuses, or other incentives.
Territory Management
The process of assigning and managing specific geographic or market areas to salespeople, optimizing coverage and customer reach.
Sales Forecasting
The process of predicting future sales revenue based on historical data, market conditions, and sales trends.
Pipeline Management
The process of tracking and managing potential sales opportunities through various stages of the sales process, from prospecting to closing.
Deal Closing Strategy
The tactics and techniques used to finalize a sales deal and secure a commitment from the customer.
Sales Acceleration
Strategies and tools that help sales teams speed up the sales process, increasing the efficiency of lead conversion and deal closure.
Recurring Revenue
Revenue that is earned on a regular, ongoing basis, such as through subscriptions or service contracts.
One-Time Revenue
Revenue that is earned from a single transaction, such as a product sale, without the expectation of recurring payments.
Customer Profitability
A measure of the total profit generated by a customer over a specific period, taking into account revenue and associated costs.
Lifetime Customer Value (LTV)
The total revenue a business can expect from a single customer throughout their entire relationship with the company.
Freemium Model
A business model where basic services are provided for free, with additional features or services available for a fee.
Subscription Business Model
A business model where customers pay a recurring fee, often monthly or annually, to access a product or service.
Pay-per-Use Model
A pricing strategy where customers only pay for the amount of a product or service they actually use, such as cloud storage or utilities.
Consumption-Based Pricing
A pricing model where customers are charged based on their actual usage or consumption of a service, similar to pay-per-use.
Dynamic Pricing Strategy
A pricing strategy where prices are adjusted in real time based on market demand, competition, and other external factors.
Price Skimming
A pricing strategy where a new product is introduced at a high price and gradually reduced over time to capture different customer segments.
Penetration Pricing
A pricing strategy where a product is introduced at a low price to quickly gain market share, with the intention of raising the price later.
Price Elasticity of Demand
A measure of how sensitive the quantity demanded of a product is to a change in its price.
Bundling Strategy
A pricing strategy where multiple products or services are sold together as a single package, often at a lower price than buying them separately.
Loss Leader Pricing
A strategy where a product is sold at a price below its cost to attract customers, with the expectation of making up the loss through other purchases.
Price War
A competitive situation where companies continuously lower prices to outdo each other, often leading to reduced profit margins.
Psychological Pricing
A pricing strategy that takes into account the psychological impact of certain prices on consumers, such as using $9.99 instead of $10.00.
Competitive Pricing Strategy
A strategy where a company sets its product prices based on the prices of similar products offered by competitors.
Discount Pricing
Offering products at a reduced price to attract more customers or move excess inventory.
Promotional Pricing
A temporary reduction in price to stimulate sales, often used during sales events or product launches.
Cost-Plus Pricing
A pricing strategy where a fixed percentage or markup is added to the cost of producing a product to determine its selling price.
Breakeven Pricing
The price at which the revenue from selling a product covers the costs associated with producing it, resulting in neither a profit nor a loss.
Tiered Pricing
A pricing structure where different levels of service or product features are offered at different price points.
Peak Pricing
A pricing strategy where higher prices are charged during periods of high demand, such as during holidays or peak hours.
Balanced Scorecard Framework
A strategic management tool that measures organizational performance across financial, customer, internal process, and learning/growth perspectives.
OKRs (Objectives and Key Results)
A goal-setting framework that helps organizations define measurable objectives and track their progress through specific key results.
Revenue Growth Rate
The percentage increase in a company’s revenue over a specific period, used as a key indicator of business performance.
Capital Requirements
The amount of capital a company needs to fund its operations, growth, or regulatory obligations.
Access to Distribution Channels
The availability of routes through which a company can sell its products or services to consumers, such as retail stores or online platforms.
Government Policy
The regulations, laws, and policies set by governments that can influence business operations, market entry, and competition.
Incumbent Advantage
The competitive edge that established companies have over new entrants, often due to brand recognition, customer loyalty, and economies of scale.
Learning Curve
The process by which a company becomes more efficient at producing a product over time as it gains experience.
Experience Curve
The concept that a company’s costs decrease as cumulative production experience increases, leading to economies of scale.
Market Concentration
The extent to which a small number of firms dominate a market, often measured by market share.
Market Fragmentation
A situation where no single company holds a significant market share, leading to a large number of smaller competitors.
Competitive Intensity
The level of competition within an industry, which can affect pricing, profitability, and market share.
Price Competition
A type of competition where companies try to gain market share by lowering prices, often leading to price wars.
Non-Price Competition
Competition based on factors other than price, such as product quality, brand reputation, or customer service.
Exit Barriers
Factors that prevent or hinder a company from leaving a market, such as high fixed costs, contractual obligations, or loss of brand value.
Excess Capacity
The situation where a company or industry produces more than the demand for its products, often leading to inefficiencies and lower prices.
Supplier Concentration
The degree to which a few suppliers dominate the supply of a particular product or service, giving them more bargaining power.
Supplier Switching Costs
The costs incurred by a company when changing from one supplier to another, which can include financial, operational, and time-related factors.
Supplier Dependency
The extent to which a company relies on a specific supplier for key inputs, creating vulnerability if the supplier encounters issues.
Input Differentiation
The process by which suppliers offer unique products or services that cannot be easily replicated, reducing price competition.
Forward Integration
A strategy where a company expands its operations by controlling the distribution or retail aspects of its products.
Backward Integration
A strategy where a company expands its operations by controlling its supply chain, such as acquiring suppliers of raw materials.
Supply Chain Power
The relative strength a company has within its supply chain, often determined by its size, influence, or control over key resources.
Buyer Concentration
The degree to which a few buyers control a large portion of the market, giving them leverage over suppliers.
Buyer Volume
The total quantity of goods or services purchased by a buyer, which can influence pricing and terms of sale.
Price Sensitivity
The degree to which the demand for a product changes in response to changes in price.
Buyer Switching Costs
The costs or barriers that prevent customers from switching to a competitor, such as contractual obligations or loyalty programs.
Buyer Information Availability
The extent to which buyers have access to information about products, prices, and market conditions, affecting their bargaining power.
Buyer Profitability
The profitability of serving a particular customer or customer segment, taking into account costs and revenue.
Product Innovation
The process of developing new or improved products that meet customer needs and create value in the marketplace.
Cross-Price Elasticity
The responsiveness of demand for one product to changes in the price of another related product, such as substitutes or complements.
Price-Performance Trade-off
The balance between the price of a product and its performance, where higher prices often reflect better performance or quality.
Industry Profitability
The overall profitability of an industry, often influenced by factors such as competition, barriers to entry, and cost structures.
Market Power
The ability of a company to influence prices and control market conditions, often through monopoly or dominant market share.
Strategic Alliances
Partnerships between companies to achieve mutual goals, such as sharing resources, technology, or market access.
Joint Ventures
A business arrangement where two or more companies collaborate to form a new, jointly-owned business entity to pursue specific objectives.
Complementors
Companies or products that add value to each other when used together, creating opportunities for collaboration or partnerships.
Strategic Groups
Clusters of companies within an industry that follow similar strategies, often competing more directly with each other than with firms outside the group.
Industry Attractiveness
An assessment of how profitable and competitive an industry is, influencing a company’s decision to enter or exit.
Strategic Positioning
The process of defining how a company wants to be perceived in the market relative to competitors, focusing on differentiation and target segments.
Industry Structure
The organization of an industry, including the number of competitors, barriers to entry, and the nature of competition.
Strategic Resources
Valuable, rare, inimitable, and non-substitutable resources that give a company a competitive advantage in the market.
Value Chain Optimization
The process of enhancing each step in the value chain to maximize efficiency, reduce costs, and improve product or service quality.
Rivalry Dynamics
The competitive interactions between firms in a market, driven by factors such as pricing, product innovation, and market share battles.
Competitive Forces
The various factors that influence competition within an industry, such as competitors, suppliers, buyers, new entrants, and substitute products.
Five Forces Model
A framework developed by Michael Porter to analyze the competitive forces that shape industry profitability
Substitution Risk
The potential for customers to switch to a different product that serves the same need, affecting a company’s sales and profitability.
Porter’s Generic Strategies
A framework that outlines three main strategies for achieving competitive advantage
Competitive Scope
The breadth of a company’s target market, whether it targets a broad or narrow segment of the market.
Industry Analysis
The study of the overall competitive dynamics and profitability of an industry to inform strategic decisions.
Strategic Cost Management
The practice of managing costs strategically to improve profitability and maintain competitive advantage.
Supplier Bargaining Power
The ability of suppliers to influence the price, quality, and availability of goods or services, affecting a company’s profitability.
Price Leadership
A situation where a dominant company sets the pricing standard for an industry, and other firms follow its lead.
Power Asymmetry
A situation where one party in a market or relationship holds significantly more power or influence than others, often seen in supplier or buyer relationships.
Horizontal Competition
Competition between companies at the same level in the value chain, typically direct competitors offering similar products.
Vertical Competition
Competition between companies at different stages of the supply chain, such as suppliers, manufacturers, and retailers.
Disruptive Threats
The risk posed by innovations or changes in technology, business models, or market conditions that can significantly alter industry dynamics.
Competitive Convergence
A situation where competitors in an industry adopt similar strategies, making it difficult for customers to differentiate between them.
Market Entrants
New companies or organizations that enter an existing market and compete with established businesses, often challenging market dynamics.
Monopolistic Competition
A market structure where many firms sell similar but differentiated products, allowing for competition based on factors like price, quality, and branding.
Perfect Competition
A theoretical market structure characterized by many firms offering identical products, with no barriers to entry and perfect information for all participants.
Oligopoly
A market structure dominated by a small number of large firms, where each firm’s decisions impact the others, leading to strategic interactions.
Monopoly
A market structure where a single firm dominates the entire market, often resulting in higher prices and reduced consumer choice due to the lack of competition.
Blue Ocean
A business strategy focused on creating new, uncontested market space by offering innovative products or services that make competition irrelevant.
Red Ocean
A market space where companies fiercely compete for the same customers, often resulting in price wars and shrinking profit margins.
Uncontested Market Space
A market area with little or no competition, where a company can create new demand and differentiate itself without fighting over existing market share.
Strategic Canvas
A visual tool used in Blue Ocean Strategy to compare a company’s performance across key factors against competitors, helping identify areas for differentiation.
Eliminate-Reduce-Raise-Create Grid
A framework used in Blue Ocean Strategy to systematically identify which factors in a market should be eliminated, reduced, raised, or created to unlock new value.
Differentiation and Low Cost
A strategy where a company seeks to offer unique products or services at a lower cost than competitors, balancing innovation with affordability.
Strategic Profile
The distinctive combination of value offerings that a company uses to differentiate itself from competitors in a market.
Market Reconstruction
The process of rethinking and reshaping an existing market by introducing new value propositions, often leading to the creation of new market space.
Strategic Pricing
The use of pricing as a competitive tool to capture market share, drive profitability, or align with a company’s value proposition and positioning.
Mass Market Strategy
A marketing approach that targets a broad customer base, aiming to serve the general public rather than niche segments.
Non-Customer Segmentation
The process of analyzing and understanding individuals or groups who are not currently customers, to find ways to convert them into customers.
Market Demand Creation
The process of stimulating demand for a product or service in a market, often through innovation, marketing, or new value offerings.
Blue Ocean Shift
The transition from competing in a crowded, competitive market (Red Ocean) to creating a new market space with little competition (Blue Ocean).
Overlapping Needs
The shared or common needs of different customer segments, which can be leveraged to create products that appeal to multiple groups.
Unmet Needs
Customer needs that are not adequately addressed by existing products or services, representing opportunities for innovation and differentiation.
Strategic Move
A set of actions and decisions a company makes to create a new value curve and position itself uniquely in the market.
Value Creation Strategy
A business approach focused on delivering superior value to customers through product innovation, improved services, or unique customer experiences.
Total Customer Solution
A strategy that focuses on providing a comprehensive, end-to-end solution to meet all of a customer’s needs, rather than just selling a product or service.
Decoupling Pricing from Cost
A strategy where the price of a product or service is not directly tied to the cost of production, allowing for more flexible and value-based pricing.
Pioneer-Migrator-Settler Map
A strategic tool used to categorize a company’s products as pioneers (innovators), migrators (adaptations), or settlers (commodities) to guide future innovation.
Competitive Benchmarking
The practice of comparing a company’s performance, products, or processes against industry best practices or key competitors to identify areas for improvement.
Industry Boundaries
The limits that define the scope of competition in an industry, such as product categories, geographic reach, or customer segments.
Focus and Divergence
A strategy where a company focuses on its core strengths while diverging from competitors by offering unique value propositions.
Unlocking New Demand
The process of creating new opportunities for growth by identifying untapped customer needs or non-customers in the market.
Profit Pool Mapping
The analysis of profit distribution across different areas of an industry to identify where the most significant opportunities for profitability lie.
Non-Customer Analysis
The study of individuals or groups who are not currently purchasing a product or service, to uncover opportunities for market expansion.
Tiered Pricing Strategy
A pricing approach where different levels of service or product offerings are available at varying price points to target different customer segments.
Economic Pricing Corridor
A range of acceptable prices for a product or service based on market conditions, customer demand, and competitive offerings.
Sequence of Buyer Utility
A framework used in Blue Ocean Strategy to assess how a product delivers utility to customers across various stages of the buying and usage process.
Strategic Cost Curve
A tool used to visualize the relationship between cost and value creation, helping companies identify opportunities to reduce costs while maintaining or enhancing value.
Blue Ocean Opportunities
New business opportunities that arise from creating uncontested market space, offering high growth potential and little competition.
Competitive Saturation
A state where a market is crowded with competitors, making it difficult for companies to differentiate themselves and achieve high profitability.
Market Creation
The process of developing a completely new market by introducing innovative products, services, or business models that do not yet exist.
Strategic Differentiation
The process of distinguishing a company’s products, services, or brand from competitors by offering unique features, value, or experiences.
Innovation without Disruption
The ability to innovate and create new market opportunities without causing significant disruption to existing products or services.
Tipping Point Leadership
A leadership strategy that focuses on identifying and leveraging key influencers or factors that can drive large-scale change with minimal effort.
Rapid Execution
The ability to implement strategic initiatives quickly and effectively, often critical for seizing new market opportunities.
Industry Reimagination
The process of radically rethinking how an industry operates by challenging traditional norms and introducing innovative business models.
Alternative Industry Models
Business models that differ significantly from the traditional structures within an industry, often providing new ways to create value and generate revenue.
Pathway to Differentiation
The strategic steps a company takes to set itself apart from competitors by offering unique and superior value.
Market Expansion
The strategy of growing a company’s reach by entering new markets or increasing penetration in existing markets.
Growth Frontier
The edge of an industry’s current growth potential, where companies can explore new opportunities for innovation and market expansion.
Organizational Renewal
The process of revitalizing a company’s strategy, culture, and operations to adapt to changing market conditions and drive future growth.
Strategy Execution Risk
The potential challenges and obstacles that arise when implementing a strategy, which could hinder success or lead to failure.
Nontraditional Competitors
Companies or organizations that do not traditionally compete in a specific market but enter and disrupt the industry through innovation or alternative business models.
Alternative Market Creation
The process of developing a new market that did not previously exist by offering a completely new product or service.
Holistic Strategy
A comprehensive approach to strategy that considers all aspects of a business, including operations, marketing, finance, and human resources, to achieve long-term success.
Execution Leadership
A leadership style that focuses on effectively implementing strategies and driving results through disciplined execution.
Strategy Roadmap
A high-level plan that outlines the key steps and milestones needed to achieve a company’s strategic goals over time.
Breakthrough Innovation
Significant and disruptive innovations that create entirely new markets or drastically change the competitive landscape of an existing industry.
Industry Evolution
The gradual development and transformation of an industry over time, driven by technological advances, changing consumer preferences, and competitive dynamics.
Alternative Value Propositions
Unique value offerings that differentiate a company from competitors, often targeting different customer segments or needs.
Reaching Unserved Markets
The strategy of expanding into markets that are currently underserved or unserved by existing products or services.
Pricing Innovation
The development of new pricing models or strategies that challenge traditional pricing structures and create new value for customers.
Blue Ocean Implementation
The process of executing a Blue Ocean Strategy by creating new market space, reducing competition, and unlocking new demand.
Creative Destruction
A concept where new innovations disrupt and replace existing industries, businesses, or products, leading to economic and market evolution.
Elastic Demand Curve
A demand curve that shows how sensitive the quantity demanded of a product is to changes in price, with elastic demand indicating a high responsiveness to price changes.
Competitive Disruption
The process of significantly altering the competitive dynamics of an industry through innovation, new business models, or changes in customer preferences.
Market Entry Timing
The strategic decision of when to enter a market, which can impact competitive advantage, profitability, and market share.
High Margin Strategy
A business approach focused on maximizing profit margins by offering premium products or services with added value for customers.
Non-Disruptive Creation
The development of new market spaces and opportunities that do not disrupt existing industries or displace established players.
Strategy Complementors
Businesses or products that complement a company’s strategy, providing additional value to customers when used together.
Environmental Sustainability
The practice of conducting business in a way that minimizes negative impacts on the environment and ensures long-term ecological balance.
Social Responsibility
A company’s obligation to act in the best interest of society at large by contributing to the well-being of communities, employees, and the environment.
ESG Reporting
The disclosure of a company’s environmental, social, and governance (ESG) practices to stakeholders, often as part of sustainability reporting.
ESG Metrics
Key performance indicators used to measure a company’s environmental, social, and governance performance.
Carbon Emissions
The release of carbon dioxide (CO2) and other greenhouse gases into the atmosphere, typically resulting from human activities such as energy production and transportation.
Carbon Offsetting
The process of compensating for carbon emissions by investing in projects that reduce or remove an equivalent amount of greenhouse gases from the atmosphere.
Climate Change Mitigation
Efforts to reduce or prevent the emission of greenhouse gases in order to slow the pace of climate change.
Renewable Energy
Energy that comes from natural sources that are replenished on a human timescale, such as solar, wind, and hydropower.
Energy Efficiency
The practice of using less energy to perform the same task or produce the same outcome, reducing energy waste and lowering costs.
Resource Conservation
The responsible management and use of natural resources to ensure they are preserved for future generations.
Waste Management
The processes and actions required to manage waste from its creation to its disposal, including collection, recycling, and disposal practices.
Water Conservation
The strategies and activities aimed at reducing water usage and waste to protect water resources and ensure sustainable supply.
Biodiversity
The variety of life in a particular habitat or ecosystem, including the diversity of species, ecosystems, and genetic variation.
Sustainable Sourcing
The practice of purchasing materials, products, or services in a way that minimizes environmental impact and supports ethical labor practices.
Green Procurement
The acquisition of goods and services that have a reduced environmental impact, often taking into account sustainability factors throughout the product’s lifecycle.
Green Financing
Financial products and services that support environmentally sustainable projects, such as renewable energy or clean technology investments.
Sustainability Indices
Benchmarks that measure and compare companies’ sustainability performance across environmental, social, and governance criteria.
Greenhouse Gas (GHG) Emissions
Gases that trap heat in the earth’s atmosphere, contributing to global warming and climate change, such as carbon dioxide, methane, and nitrous oxide.
Net-Zero Goals
Targets set by organizations to balance the amount of greenhouse gases emitted with an equivalent amount removed from the atmosphere, resulting in a net-zero impact.
Scope 1 Emissions
Direct greenhouse gas emissions from sources owned or controlled by a company, such as fuel combustion in company vehicles or factories.
Scope 2 Emissions
Indirect greenhouse gas emissions from the generation of purchased electricity, steam, heating, or cooling used by a company.
Scope 3 Emissions
All other indirect greenhouse gas emissions that occur in a company’s value chain, such as those from suppliers, transportation, and product use.
Carbon Disclosure
The practice of reporting a company’s greenhouse gas emissions, often as part of broader environmental or sustainability reporting.
Sustainable Supply Chain
A supply chain that integrates environmental, social, and economic considerations into its practices to reduce impact and ensure long-term sustainability.
Fair Labor Practices
Employment standards that ensure safe, fair, and humane working conditions, including fair wages, reasonable working hours, and the right to unionize.
Human Rights Due Diligence
The process of identifying, preventing, mitigating, and accounting for how a company’s operations affect human rights.
Ethical Sourcing
The process of ensuring that products and materials are obtained in a responsible and sustainable manner, taking into account environmental and social factors.
Stakeholder Engagement
The process of interacting with individuals or groups who are affected by or have an interest in a company’s activities, such as employees, customers, and communities.
Accounting Cycle
The series of steps followed in accounting to record and process financial transactions, from journal entries to financial statement preparation.
Accrual Accounting
An accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.
Cash Accounting
An accounting method where revenues and expenses are recorded only when cash is received or paid.
Generally Accepted Accounting Principles (GAAP)
A set of accounting standards and guidelines used in the United States to ensure consistency and transparency in financial reporting.
International Financial Reporting Standards (IFRS)
Global accounting standards used by many countries to ensure uniformity in financial reporting across international borders.
