Exam 1 Vocab Flashcards
Operational Effectiveness
doing similar activites better than competitors
Competitive Strategy
Doing different activites from rivals or similar ones in different ways
Strategy
establishing and sustaining a unique position; creating fit among activites
Types of strategic positions
Variety-based, needs-based, accessed-based
Variety-Based positioning
Producing subset or products
Needs-based positioning
Serving needs of particular group
Accessed-based positioning
finding different ways to access customers
Trade-offs
doing more of one thing and less of another
strategic advantage
Way of doing things that makes company more successful than others; coherent whole, greater than sum of individual activites
What are the 3 types of fit
Simple consistency, reinforcing fit, optimization of effort
Simple Consistency
fit between activities and overall strategy
Reinforcing fit
fit among activities themselves
Optimization of effort
fit with activites and high order goals and objectives
Value Chain Framework
maps out how activites fit together
Strategic group
group of firms that compete on similar strategies that differ from other groups
4 key elements of strategy formulation
- company strengths and weaknesses
- personal values of key implementers
- industry opportunities
- Broad social expectations
Competitive disadvantage
firm gets profit below average industry profit level
Competitive parity
obtains profit at average profit leve
Temporary competitive advantage
profit above industry average for short period of time
Sustained competitive advantage
profit above industry average for long time
Distinctive competencies
firm specific resources that give it value-enhancing strategies
Business level strategy
plan to use firm resources and distinctive competencies to gain competitive advantage
Focused Cost-leadership strategy
offers low priced products to one group of customers
Cost leadership strategy
offers low priced products to many customers
Focused differentiation strategy
offers unique products to one group of customers
Differentiation Strategy
offers unique products to many customers
What are the stages of the industry life cycle
embryonic, growth, stakeout, maturity, decline
What are the types of business strategies
Focused Cost-leadership, cost leadership, focused differentiation, differentiation
What are the generic business strategies
Product differentiation, market segmentation, distinctive competencies
What are the 5 Forces Frame Work
Threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitutes, industry rivalry
What is Resource-Based View
Suggested by Barney that firms should look inward to find sources of competitive advantage
Low-cost strategy
minimizing operational costs to offer products at a lower price than competitors
Hill’s contingency framework
Combining differentiation with low-cost strategies depending on environment
