eloroy case study Flashcards
Elroy Air:
Recall the Business Model Canvas
How will a business do better than its rivals?
Competitive Strategy:
Strategy is NOT…
(1) Being the best, the first, or the only
(2) Operational effectiveness - Doing the same things better
Strategic Focus:
A plan of action that will develop a business’s competitive advantage
Strategic focus requires ___.
trade-offs (companies to do things differently and do different things)
Generic Strategies:
(1) Differentiation: Deliver distinctive value
(2) Cost Leadership: Deliver low costs but balance with equity
Once scope is factored in (focused or broad), what are the five strategy options?
(1) Broad cost leadership
(2) Focused cost leadership
(3) Broad differentiation
(4) Focused differentiation
(5) **Best cost provider
Broad Cost Leadership:
Striving to achieve lower overall costs than rivals and appealing to a broad spectrum of customers, usually by underpricing rivals
Focused Cost Leadership:
Concentrating on a narrow buyer segment and outcompeting rivals by having lower costs than rivals and being able to serve niche members at a lower price
Broad Differentiation:
Seeking to differentiate the firm’s product or service from rivals’ in ways that will appeal to a broad spectrum of buyers
Focused Differentiation:
Concentrating on a narrow buyer segment and outcompeting rivals by offering niche members customized attributes that meet their tastes and requirements better than rivals’ products
Best Cost Provider:
Giving customers more value for the money by satisfying buyers’ expectations on key quality/features/performance/service attributes while beating their price expectations
How do recourses and capabilities fit into strategy?
___ refer to what an organization owns, and ___ refers to what the organization can do.
Resources, capabilities
What is competitive advantage and how do firms achieve it?
How will a business do better than its rivals?
(1) Do different things
(2) Do things differently
