Exam 2 Flashcards
Demand Conditions
The nature of domestic customers especially whether they have high expectations of the goods and services that they buy.
Global Strategy
To sacrifice responsiveness to local preferences in favor of efficiency.
Stuck in the Middle
A situation in which a business-level strategy does not offer features that are unique enough to convince customers to buy its offerings and its prices are too high to compete effectively on based on price.
Just-in-Time inventory Management
A production system that conserves space and lowers costs by requiring inputs to arrive at the moment they are needed.
Company Strategy
Structure
Rivalry
How challenging it is for companies to survive domestic competition.
First-Mover Advantage
When the initial move into a market allow a company to establish a dominant position that other companies struggle to overcome.
Licensing
One organization grants another the right to create its product, often using patented technology, in exchange for a fee.
Multipoint Competition
A situation in which a company faces the same rival in more than one market
Strategic Alliance
A cooperative arrangement between two or more organizations that does not involve the creation of a new entity.
Focused Cost Leadership
A generic business strategy that requires competing based on price to target a narrow market.
First Mover
An initial entrant into a market.
Blue Ocean Strategy
Creating a new, untapped market rather than competing with rivals in an existing market.
Price Sensitive
The extent to which a price increase makes a buyer less likely to purchase an item.
Political Risk
The potential for government upheaval or interference with business to harm an operation within a country.
Business Risk
The potential that a business operation might fail.
Nationalization
The seizure of privately owned business operations by a national government.
Focus Strategies
Generic business approaches that involve targeting a relatively narrow niche of potential customers.
Colocation
When goods and services offered under different brands are located close to one another.
Focused Differentiation
A generic business strategy that requires offering unique features that fulfill the demands of a narrow market
Cultural Risk
The potential for a company’s operations in a country to struggle because of differences in language, customs, norms, and customer preferences.
Factor Conditions
The nature of raw material and other inputs that companies need to create goods and services
Economic Risk
The potential for a country’s economic conditions and polices, property rights protections, and currency exchange rates to harm an operation.
Multinational Corporation (MNC)
A company that has operations in more than one country.
Foothold
A small position that a company intentionally establishes within a market in which it does not yet compete.
Offshoring
The relocation of a business activity to another country.
Joint Venture
A cooperative arrangement that involves two or more organization’s, each contributing to the creation of a new entity.
Exporting
Creating goods within a company’s home country and then shipping them to another country where they are sold to customers by a local company.
Transnational Strategy
Involves balancing the desire for efficiency with the need to adjust to varying preferences across countries.
Disruptive Innovation
An improvement that conflicts with and threatens to replace, traditional approaches to competing within an industry.
Best-Cost
A business-level strategy followed by companies that charge relatively low prices and offers substantial differentiation.
Related and Supporting Industries
The extent to which companies’ domestic suppliers and other complementary industries are developed and helpful
Multidomestic Strategy
To sacrifice efficiency in favor of responsiveness to varying preferences across countries.
Generic Strategy
A general way of positioning a company’s business-level strategy within an industry.
Cost Leadership
Generic strategy that offers products or services with acceptable quality and features to a broad set of customers at a low price.
Greenfield Venture
A foreign operation that a company creates entirely by itself.
Mutual Forbearance
A situation in which rivals do not act aggressively because each recognizes that the other can retaliate in multiple markets.
Co-opetition
A blending of competition and cooperation between tow companies.
Franchising
An organization (called a franchisor) grants the right to use its brand name, products and processes to other organizations (known as franchisees) in exchange for an up-front payment (franchise fee) and percentage of franchises’ revenues (royalty)
Economies of Scale
A cost advantage created when a company can produce a good or service at a lower per-unit price due to producing the good or service in large quantities.
Fighting Brand
A lower-end brand that a company introduces to try to protect the company’s market share without damaging the company’s existing brands.
Reshoring
The relocation to a company’s home country of business activity that had been sent overseas.
Differentiation Strategy
A generic positioning that attempts to convince customers to pay a premium price for its good or services by providing unique and desirable features.
Bricolage
Using whatever materials and resources happen to be available as the inputs into a creative process.
Hypercompetition
A situation that involves very rapid and unpredictable moves and countermoves that can undermine competitive advantages.
